A large commercial office block immediately adjacent to Auckland University’s central city campus – and tenanted by a variety of corporate entities - has been placed on the market for sale.
The property known as Hamburg Sud House at 52 Symonds Street features eight storeys of commercial office space above three levels of car parking – sitting on 1193 square metres of freehold land zoned business city centre zone.
The distinctive mirror glass octagonal-shaped tower borders onto Auckland University’s school of fine arts campus, and is near to the some of the university’s halls of residence – overlooking the Grafton Gulley motorway on and off ramps.
The property currently generates a total net passing rental income of $936,636.93 plus GST per annum from multiple tenancies.
The modern office block complex is being marketed for sale by tender through Bayleys Auckland, with tenders closing at 4pm on November 16. Salespeople Chris Bayley and Lloyd Budd said the building had an A+ seismic classification.
“There is considerable potential upside to increase revenue from the property – with vacant office space available for lease on the ground, first, and second floors,” Mr Bayley said.
“While the building was constructed in 1984, it has subsequently undergone multiple upgrades and office reconfigurations over the ensuing decades. These, combined with an ongoing maintenance schedule, have ensured the internal fit outs have been undertaken to very high standards.”
The octagonal design of the building – typical of Auckland’s early-1980s commercial architecture period which saw a large number of buildings erected on the Symonds Street ridgeline – allows for high volumes of natural light into the interior space.
Conversely, looking out, the offices inside have excellent views over Auckland Domain, with the upper levels also enjoying views of the Waitemata Harbour.
Mr Budd expected that based on current commercial leasing trends in the eastern city-fringe vicinity, it would be relatively easy to find new tenancies for the currently empty areas within Hamburg Sud House – with all floors served by two passenger lifts and with air conditioning throughout.
“Vacancy rates within the Symonds Street Ridge fell to five percent when recorded earlier this year,” Mr Budd said.
“Overall inventory within the Symonds Street Ridge precinct has been declining for a number of years as a result of an increase in residential use within converted premises – either totally as apartment towers, or in mixed-use formats,” he said.
“This style of reconfigured use is obvious in nearby properties such as 38 Whittaker Place and 71 Symonds Street. The overall floor plate of stock within the precinct has subsequently declined from just over 100,000 square metres in 2008 to approximately 85,000 square metres earlier this year.
“Of that remaining space, the tertiary education sectors is the largest occupier, followed by professional services firms in the legal, IT, and communications sectors.”