A full-floor office with potential for conversion to residential accommodation in one of Auckland’s most sought-after CBD locations has been placed on the market for sale or lease.

Unit 4A, 17 Albert Street encompasses the entire fifth floor of a 14-level commercial building on the corner of Albert and Wolfe streets. The building incorporates mixed uses with retail at ground level and a blend of office and residential accommodation on higher floors.

Unit 4A is currently leased to serviced-office provider CBD Office Ltd, generating net rental income of $132,645 plus GST per annum. CBD Office supports city businesses with a range of flexible commercial accommodation solutions, such as serviced-office rental, boardroom and meeting room hire, casual office hire and co-working spaces.

The property on offer consists of a freehold strata-titled unit of approximately 718 square metres. It is now being marketed for sale or lease by way of a tender closing on 3 December (if not sold or leased prior), through Bayleys Auckland Central.

Salespeople Phil Haydock, Polly Markus and James Were said the unit offered potential buyers or new tenants a variety of possible configurations and uses.

Though the existing lease runs through to 2022, the lease agreement includes provision for earlier vacation if required by a new owner or tenant, Mr Haydock said.

“The large full-floor space on offer is highly versatile and could suit a wide range of requirements. A business could choose to occupy the floor themselves, or take a smaller part and generate income with the rest until they are ready to expand. Or an investor might add value by converting it into high-yielding multi-dwelling residential accommodation.

“Alternatively, it could be repurposed into an expansive, customised city pad or a live-and-work space right in the heart of New Zealand’s leading commercial hub,” said Mr Haydock.

Mr Haydock said the building at 17 Albert Street was constructed between 1973 and 1976 and had since been strata-titled into 51 freehold units. The property has an A-grade seismic rating of 82 percent of new building standard.

“The unit for sale or lease is accessed through a lobby off Albert Street, which contains three centrally-positioned lifts servicing the building. The entrance and lobby areas have recently been refurbished to a high standard, resulting in a well-appointed and attractive introduction to the building.

“This welcoming environment will receive a further lift with the completion of a mural on the northern wall by New Zealand artist Sarah Hughes. Sarah is renowned for her high-profile public works, examples of which can be found next-door in the lobby of the 39-level ANZ Centre and, perhaps most famously, across the exterior of the NZ International Convention Centre,” Mr Haydock said.

“Unit 4A encapsulates the entire fifth floor of 17 Albert Street, and is fully self-contained with its own bathroom and kitchen facilities. It has a modern and presentable fitout. A variety of offices and meeting rooms in different sizes are configured around a centrally-positioned lobby, reception and amenities. This makes good use of the natural light and outlook this full floor enjoys.”

Ms Markus said the Albert Street property’s Business – City Centre zoning under Auckland Council’s unitary plan allowed for a wide range of activities.

“The location, zoning and building characteristics make this a very flexible freehold office unit. It would lend itself well to being split into multiple tenancies if required and would suit a wide variety of future users – including those looking to pursue a residential conversion project.

“A number of successful projects in the CBD have shown the potential benefits to be gained from repurposing office space for residential use. This follows international trends driving higher demand for inner-city living,” Ms Markus said.

“The population living in Auckland’s CBD has grown beyond all expectations, reaching 45,000 in 2017, fifteen years earlier than Auckland Council predicted in its 2012 city centre masterplan. According to Statistics New Zealand, the city centre population is growing six times faster than the rest of the region and it is tipped to soar to at least 75,000 by 2027.”

Mr Were said the Albert Street property’s downtown CBD location was one of its strongest attributes.

“This site has convenient access to public transport and motorway onramps. It’s a few minutes’ walk from the transport hub at Britomart and downtown ferry terminal. A short walk up Albert Street will be the City Rail Link’s new Aotea Station,” said Mr Were.

“Once completed, the City Rail Link will transform Britomart into a two-way through station that better connects the Auckland rail network – doubling the number of Aucklanders who live within a 30-minute commute of the CBD.”

Mr Were said the surrounding precinct was home to some of Auckland’s most prestigious office towers, including the ANZ Centre and the new 39-level PwC Tower.

Also nearby were SkyCity, the under-construction NZ International Convention Centre and a host of hotels and residential accommodation sites, he said.

“Entertainment and hospitality options also abound, with this property being close to the Britomart precinct and Viaduct Harbour as well as the cafes, restaurants and world-class shopping at the recently-opened Commercial Bay,” said Mr Were.