The refurbished 2,016sqm building which comes with 28 car parks is located on a corner site at 43-45 Sale Street with frontage also onto Union Street. It is generating net annual rental income of approximately $758,000 plus GST from six leases.
“This is a great opportunity to acquire an attractive building in a premium location, highly sought after by commercial and residential occupiers,” says Alan Haydock, director of Bayleys’ Auckland City & Fringe Division. ““It’s hard to find fully leased CBD investment opportunities with diversified income streams in the $10-$20 million price bracket, particularly in tightly held Sale Street where properties rarely come up for sale.”
Haydock is marketing the offering with Auckland City & Fringe division colleague Damien Bullick. It is for sale by tender closing 4pm, September 7, unless sold prior.
The five main tenancies range from 343 sq m to 540 sq m with 2 Degrees Mobile also having a cell site tenancy agreement until 2027.
“Most of the tenants are longstanding occupants – an indication of their satisfaction with both the location and the building – with two having been there for over 15 years and two others closing in on 10 years,” says Haydock.
“Two of these lessees have exercised final rights of renewal which opens up options for next owner of the property to add further value to the property. These could include negotiating new leases with current occupants, securing new tenants or possibly occupying some of the space themselves at the expiry of the leases.”
The building’s largest tenant is Les Mills International which occupies 540 sq m of character office space on the ground floor with dual access from the front and rear of the building. Established in 1968, it has grown into one of NZ’ largest fitness businesses with gymnasiums from Auckland to Dunedin, two of which are located nearby in Victoria Street West and Britomart Place.
Located on the high profile Union Street corner position is a Resene Paints Color Shop. The company has been in occupation since 2006, with its 386 sq m tenancy configured as a combination of showroom and office accommodation with roller door access to a loading dock.
The three other tenants are:
• BGT Structures, a consulting structural and civil engineering practice which has been involved in over 10,000 building projects since its establishment in 1970 and has occupied 353 sq m of office space since 2005.
• Loft 45 Limited which operates a 24x7 boutique gym and fitness centre from its 394 sq m premises which it has occupied since 2011.
• Vesper Marine has exercised a final four-year right pf renewal over 343 sq m of office accommodation which expires later this year. The company specialises in award-winning collision avoidance products for all types of boats which it sells through a worldwide network of marine electronics distributors and retailers. The New Zealand government’s Venture Investment Fund is a shareholder in the business.
Bullick says the tenancies provide high quality accommodation, with good natural light and attractive views towards Freemans Bay, as well as allocated car parks located at the rear and side of the building.
He says the redevelopment of the former Auckland Council Workshops site, on the corner of Sale and Nelson Streets, into the lively and stylish City Works Depot, with its mix of creative and hospitality tenants, has been a catalyst for the continuing rejuvenation of Sale Street.
A variety of large scale mixed-use developments have recently been completed and notable new office occupiers include Vocus Communications, AA Insurance and global advertising giant WPP. The latest residential development is The Grace apartment complex, directly across the road from 43-45 Sale Street.
“There is also excellent motorway access from the property to the harbour bridge and northern motorway via the Wellington Street on ramp, just around the corner, while the nearby Union Street motorway interchange provides easy access to and from the southern and north western motorways,” says Bullick.
“The property is also on the doorstep of the revitalised Victoria Park Market and Victoria Park itself as well as being a short stroll from the thriving waterfront precincts of Wynyard Quarter and Viaduct Harbour and the CBD.”