Massive profile in a strategic Victoria Quarter location

One of the most significant landholdings in the heart of Auckland’s fast-changing Victoria Quarter is on the market through Colliers International.

Located between Wellesley and Sale Streets, on the western fringe of Auckland’s CBD, the 1,823sq m site provides huge profile within a thriving hub of recent development activity.

It is currently underutilised as a low-rise warehouse conversion, presenting an opportunity for a new owner to unlock the site’s redevelopment potential.

In the meantime, a new owner can enjoy significant holding income. A mix of commercial and residential tenancies returns $607,200 plus GST in net annual rent.

Colliers International has been exclusively appointed to market the property at 132-134 Wellesley Street West and 9 Sale Street for sale by deadline private treaty.

Offers close at 4pm on Wednesday 16 October, unless it is sold earlier.

Investment Sales Director Tony Allsop says it is an opportunity to acquire a strategic landholding in an outstanding central location.

“The property is superbly located in the heart of the mixed-use Victoria Quarter, which has undergone significant growth and redevelopment in the last decade.

“Contemporary architecture now features alongside refurbished historic buildings in a precinct characterised by narrow streets, laneways and of course, the iconic Victoria Park.

“The Victoria Quarter is home to quality office space, an eclectic mix of new and heritage residential developments, and hospitality businesses from fine dining to brew pubs.

“This high concentration of amenity, along with the area’s proximity to motorways and public transport, makes it attractive to both business and residential uses.”

Allsop says the property for sale comprises what was originally two warehouse buildings, constructed early in the 1900s, which have been comprehensively upgraded and refurbished.

“The buildings provide a high-quality showroom with associated administration offices, a trade sales area and warehousing, plus three residential apartments.

“These sit on a significant landholding spanning four titles, with favourable Business City Centre zoning and frontage to three streets.”

Gareth Fraser, Auckland Director of Investment Sales at Colliers, says the property is being offered for sale with many options available.

“The property’s flexible zoning, tenancy arrangements and the nature of the Victoria Quarter itself provide ample opportunity to add value.

“A new owner could refurbish and add value to the existing structures, either working with the existing tenancies in place, or by reconfiguring the buildings for other uses.

“There is also an opportunity to rationalise and reconfigure the titles, either with or without divesting part of the existing property.

“In the longer term, a new owner could look to transform the entire site, including demolition of the existing improvements, in order to maximise the zoning potential.”

Peter Herdson, National Director of Capital Markets at Colliers, says the site’s location is key to its appeal.

“The north-facing property enjoys prominence and potential advertising exposure thanks to its position by the intersection of Wellesley, Victoria and Halsey Streets.

“The site also fronts Sale Street – which connects Wellesley, Cook and Union Streets – along with one-way Vernon Street, between Drake and Sale Streets.

“Excellent motorway access is provided via the Union Street motorway interchange, putting the property within a short drive of the Northwestern and Southern Motorway junctions.”

Herdson says the locality is a popular precinct for mixed-use, office and showroom businesses.

“Sale Street has developed extensively in recent years, with significant organisations like AA Insurance, Vocus Group and ACC moving into new premises.

“The immediate locality is also home to popular retail businesses including Glengarry Wines, the Sweat Shop Brew Tavern and Victoria Park Market.

“New residential and accommodation developments have also taken shape in the area in recent years. The 40-room Swiss-

Belsuites Victoria Park hotel opened in October 2016, while the new Grace Victoria Quarter apartment development at 70 Sale Street is due to settle by October 4.”

The property for sale has a net lettable area of some 2368.8sq m excluding balconies and decks.

It is mostly occupied by plumbing and bathroom supplier Reece New Zealand Ltd on a four-year lease returning $485,000 plus GST in net annual rent. Final lease expiry is in March 2022.

There are also three apartments on periodic leases, returning an additional $122,200 in total annual rent.

The original building, dating to the 1920s, is a two-storey warehouse with a double gable roofline fronting Sale Street.

In 2003, the building was comprehensively refurbished and upgraded, and a new addition was added to the Wellesley Street frontage.

The extension comprises a new trade sales and showroom building, with three apartments above. Each two-storey apartment has three bedrooms, a deck and car park.

The second building, at the corner of Wellesley and Vernon Streets, was built in 1928. It retains many character features including brick finished internal walls and heavy timber roof framing.

A substantial warehouse extension and first floor offices were added in 1980s and 1990s.

The site has 16 car parks in total.