A modern office building with close to 90 per cent of its total net annual rental income of $1,389,281 coming from government tenancies is among 35 properties which are for sale in Bayleys’ latest Greater Auckland portfolio
Located at 65B Main Highway, Ellerslie, the freestanding 4-level office building totalling 4588 sq m is up for sale by tender closing on July 2, unless sold prior by private treaty, through Sunil Bhana, James Hill and Mike Houlker, Bayleys Auckland.
“This is an attractively designed and soundly constructed standalone building which was developed in the early 2000s and has an A+ Grade seismic assessment,” says Bhana. “It has four levels of quality office space plus three levels of underground parking and its anchor tenants are two government departments.”
The largest tenant is the Ministry of Social Development which occupies 2333 sq m on the top two floors and has just under five years to run on its lease which has annual rental adjustments to the Consumer Price Index and reviews to market every three years. The Ministry of Justice, which has been in occupation since 2003, leases 1675 sq m of space on Level One and part of the ground floor and has recently exercised its second right of renewal. Its space was refurbished in 2011.
The remaining tenant, occupying 578 sq m on the balance of the ground floor, is Greenlane Technologies Limited, a global biogas technology provider which last year became part of UK based Pressure Technolgies PLC.
Bhana says the building has fully ducted air conditioning across its well appointed, large office floor areas of close to 1,170 sq m and excellent natural light. It is part of a two-building complex at 65 Main Highway on a landscaped site with outdoor seating areas for staff.
He says a feature of the building is its high car parking ratio with 157 spaces, mostly underground and secure, equating to one park per 29 sq m of lettable area. “This is well in excess of the minimum required ratio of one car park per 40 sq m and increases the property’s attractiveness to tenants, particularly given parking is at a premium in this location.”
Bhana says 25 of the car parks are currently not leased providing some potential rental upside for a new owner along with building naming rights.
Hill says the building occupies a high profile position on the corner of Main Highway and Kalmia Street and is visible from the nearby southern and northern motorways (State Highway One) whose access point is a short drive away at the Penrose/Ellerslie interchange.
“The property’s central position gives easy access to the CBD via this motorway, to the eastern suburbs via the Ellerslie Panmure Highway and to the west and Auckland International Airport via the south western motorway interchange at Neilson Street.
“Within walking distance are bus stops on Great South Road, the recently redeveloped Ellerslie train station and the town centre which provides a range of amenities for people working in the area including banks, a growing number of food and beverage outlets, a variety of shops and a gymnasium.”
Houlker says the property is located within the well established and popular Southern Corridor office precinct.
“Vacancies in this precinct have remained relatively low because of the larger floor areas of many of its buildings, lower occupancy costs and better parking compared to similar CBD and city fringe buildings and its location in the geographic centre of Auckland and close to the motorway.”
Houlker says the property is expected to generate strong interest. “Investment opportunities don’t come any more solid than this – offering the security of two government tenants, the highest possible seismic rating and a sought-after location.”