A versatile office block for sale in one of Auckland’s most sought-after mixed-use precincts is expected to attract competing interest from owner-occupiers, add-value investors and developers.
The three-storey freehold property in Dundonald Street, in the CBD fringe suburb of Eden Terrace, is partially leased to an accountancy practice and an electronics business, generating total net holding income of $43,989 per annum.
With four of six tenancies vacant and a flexible configuration, it presents upside and options that will give it particular appeal among occupiers or add-value investors.
Intensive zoning also lends the site considerable future potential for development with a multi-storey residential or mixed-use complex.
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The freehold land and buildings at 22 Dundonald Street, Eden Terrace, Auckland, are being marketed for sale jointly through Bayleys Auckland Central and Orange Realty.
Sale will be by tender closing on Wednesday 26 April, unless the property is sold earlier.
Bayleys salesperson James Were said the offering consisted of a building of approximately 1,063 square metres on 1,104 square metres of land with 31 car parks.
The building has an A-grade Initial Evaluation Procedure seismic rating of 83 percent of new building standard.
“Constructed in the 1980s, this is a relatively modern, low-rise commercial office building. The ground floor provides covered, secure car parking, a formal entry and stair lobby and a small office suite of some 35 square metres leased to an electronics business on a monthly basis.
“The two upper levels provide well-presented office accommodation, currently configured as five tenancies of between 115 and 263 square metres. This includes a 115-square metre second-floor office leased to an accountancy firm on a lease extending to 2023, with a further two-year right of renewal.
“However, a key strength of this property is its versatility. The removal of inter-tenancy walls would allow the creation of a single tenancy of over 500 square metres on each of the two upper floors,” said Were.
The building is constructed with reinforced concrete foundations and floor slabs, concrete column and beams, concrete slab and block infill with aluminium-framed external joinery. The roof has been replaced within the last five years.
There is secure open-air car parking to the rear of the property, accessed via a ramp on the building’s southern side. This area also provides access to upper-level office floors.
Intensive Business – Town Centre zoning under Auckland’s unitary plan gives the Dundonald Street site significant development potential with an 18-metre allowable building height.
Bayleys salesperson Phil Haydock said the zone provided for a wide range of activities including office, residential, leisure, tourist, community and civic services.
“This zoning has facilitated a number of successful new developments in this popular commercial and residential enclave, including high-quality apartment complexes The Citizen and 59 France.
“The area has also seen keen buying activity from owner-occupiers, who have snapped up a number of nearby properties. This includes a two-storey office building on a 912-square metre site at 31-35 Dacre Street and a 313-square metre warehouse on 612 square metres of land at 9 Dundonald Street.
“Eden Terrace also has also proven very popular with commercial tenants. Taken in combination, these factors mean the site for sale has something special to offer occupiers, add-value investors and developers alike,” said Haydock.
Martyn Hamilton of Orange Realty said the site was strongly supported by its strategic city-fringe location, close to Auckland’s CBD, motorways and public transport routes, plus amenities such as Auckland University, Auckland City Hospital and the Domain.
“Symonds Street, with its retail mix including popular cafes, is a short walk away. The site is also handy to the lively retail and hospitality precincts of Ponsonby Road, Karangahape Road, Mt Eden and Newmarket.
“The City Rail Link, which will run from downtown Auckland up to the western line through Newton and Eden Terrace, will give the area a further lift.
“When it opens in 2024 the CRL will double rail capacity and stimulate property activity around stations, including a redeveloped Mt Eden station a few hundred metres from the Dundonald Street site,” said Hamilton.
- Article supplied by Bayleys
