The modern, refurbished single-storey building for sale at 5 Farnham Street, Parnell, is fully leased to Targetti Lighting and award-winning New Zealand home-builder Penny Homes. The two leases generate total net rental income of $127,516 plus outgoings and GST per annum.
Some 189 square metres of office space and three car parks are leased to Targetti (NZ) Limited, part of a global group which has designed and produced architectural light fixtures since 1928. The company supplies major retailers and its lighting solutions adorn commercial and public sites across New Zealand.
Internationally, Targetti’s products light global landmarks including Notre Dame Cathedral in Paris, the leaning tower of Pisa, Venice’s Rialto Bridge and San Francisco’s new Chase Center, home to NBA basketball titans the Golden State Warriors.
Targetti pays annual rent of $71,352 plus outgoings and GST for its Farnham Street premises on a lease that runs through to 2022, with three further three-year rights of renewal.
Penny Homes (Auckland) Limited occupies approximately 136 square metres, with three dedicated car parks. Established in 1998, this family-owned-and-operated business has grown into one of New Zealand’s best-known home-builders with offices in Auckland, Taupo and Wellington. The company has been a multiple award-winner in the Registered Master Builders House of the Year Awards.
Penny Homes’ tenancy returns annual net rental income of $56,164 plus outgoings and GST. Its current lease extends to 2022, with two further three-year rights of renewal.
The standalone freehold property at 5 Farnham Street is positioned in a vibrant and evolving location identified by Auckland Council planners for intensive mixed-use development.
The land and buildings are now being marketed for sale through Bayleys Auckland Central by way of a tender closing on 20 May, unless it is sold earlier.
Salespeople James Were and Chris Urry said the property consisted of a building of approximately 325 square metres on some 460 square metres of freehold land with six car parks.
“The extensively refurbished building has dual frontages at each end offering exposure to Farnham and Garfield streets. It contains modern, high-quality office accommodation which has been divided to create two separate tenancies,” said Mr Were.
“The Penny Homes tenancy is accessed from Garfield Street and contains a predominantly open-plan workspace with two partitioned offices.
“The Targetti tenancy is accessed off Farnham Street. It also provides open-plan office accommodation with individual offices around the perimeter.
“Two substantial skylights help to maximise natural light to the interior workspaces. Between the two tenancies is a common area comprising a hallway with access to the amenities and a shower. The car parks associated with each tenancy are positioned at their doorstep,” said Mr Were.
The Farnham Street site’s Business – Mixed Use zoning under the Auckland Unitary Plan allows for a wide range of activities.
“This zone’s purpose is to encourage a mix of compatible residential and non-residential uses. It supports a wide-range of permitted activities such as offices, retail, residential and visitor accommodation, entertainment, healthcare, light manufacturing and warehousing,” Mr Were said.
“The site for sale benefits from a height overlay allowing development up to a height of 21 metres – significantly higher than the 16 metres typically allowed under this zoning. This further heightens the property’s future development potential.”
Mr Urry said the Farnham Street property sat within a sought-after commercial and residential enclave which had undergone a transformation in recent years.
“As well as being popular with creative commercial tenants, Parnell is becoming increasingly popular with larger corporates seeking to take advantage of the strategic city-fringe position and extensive local amenities,” he said.
Mr Urry said the Farnham Street property also benefited from being a short walk from the Parnell Road retail and dining strip and the rejuvenated commercial hub along St Georges Bay Road.
“The growing vibrancy of this area is illustrated by the mix of nearby occupiers, which includes Xero, Saatchi & Saatchi, Mansons TCLM, The Icehouse business incubator and the shared office space at the Textile Lofts – along with the likes of furniture and design outlets, architectural practices and software and web marketing firms.
“Positioned at the edge of Auckland’s CBD – about 20 minutes’ walk from Queen Street – the site also offers convenient transport links to locations across greater Auckland via the nearby Parnell train station and motorway onramps,” said Mr Urry.