A tastefully refurbished two-level office building in the sought-after Auckland city fringe suburb of Parnell is available for purchase and offers buyers the opportunity to acquire an asset that has long-term development potential.
3 Scarborough Lane, Parnell is currently home to two separate tenants with one of the tenancies set to expire early next year.
The property has 521sq m of total building area on a site that spans 486sq m and is zoned Business – Town Centre Zone under the Auckland Unitary Plan. The property has six car parks.
Studio Izzo, a professional art conservation practice, occupy the ground floor of the property, which spans 234sq m, and they have an eight-year lease that runs until 31 May 2031.
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The tenant on the first floor is Tried&True Design, an independent specialist branding and design agency that lease 287sq m of space. Their agreement runs until February 2025 meaning a new owner could negotiate a new lease with this long-established tenant.
The total annual passing rental income from the property is $131,000 plus GST and operating expenses.
Parnell’s boutique shopping village that offers a popular assortment of hospitality options is only 50m away, while the suburb provides immediate connectivity to the motorway network and Auckland CBD.
Colliers Brokers Tony Allsop, Ross Hinshelwood, and David Burley have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 2 October, unless sold prior.
The strategically located property was originally a factory that was built in the 1960s and later renovated for use as a television and music studio. Its conversion to an office building has enhanced its appeal.
Further redevelopment potential exists in the future given it could be repositioned as an apartment offering.
Allsop, Director of Investment Sales at Colliers, says prospective purchasers have a range of options available to them.
“Given there is a possibility the upper level of the property could be vacant early next year, the new owner could potentially occupy the floor themselves while enjoying the steady rental stream from the other tenant,” Allsop says.
“Buyers with a long-term view may look to tenant that upper floor before completely repositioning the property in the future. Parnell is a sought-after location for residential accommodation and any developments of that nature may allow the owner to unlock the true potential of the property.”
Hinshelwood, Investment Sales Broker at Colliers, says the highly functional floors have served the existing occupants incredibly well.
“The ground floor includes a reception area, private office, and two large rooms along the eastern wall that are ideal for creative workshops and client consultations, as well as a modern kitchen and convenient storage options,” Hinshelwood says.
“The upper level is a premium office space with high ceilings and a kitchen featuring marble countertops that add to the floor’s elegance.”
Burley, Auckland Director of Investment Sales at Colliers, says Parnell remains a tightly held area that has long been coveted by investors.
“Comparable properties of this nature seldom transact in Parnell, one of Auckland's most popular suburbs,” Burley says.
- Supplied by Colliers
