One of Auckland’s most visually appealing properties in the sought-after city fringe suburb of Parnell is being presented to the market for the first time in decades, offering buyers the opportunity to secure a trophy asset that has tremendous long-term upside.
The Saatchi & Saatchi building, on a high-profile corner location at 121-125 The Strand, Parnell provides 8,790sq m of total net lettable area on a 6,985sq m site that is zoned Business – Mixed Use under the Auckland Unitary Plan.
The property, which has 95m of road frontage, consists of a three-level character building, a two-level annex and three-level car park building with 213 dedicated car parks. It provides retail, office, and showroom space and is considered one of the best character buildings in New Zealand.
The freehold property is home to a multitude of prominent tenants, including Saatchi & Saatchi, Serko, New Zealand Rugby, and Europlan, among others.
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The adjoining building at 1A/130 Saint Georges Bay Road, which includes 59 car parks, is also for sale, which offers prospective purchasers further flexibility and futureproofing.
The combined net passing income from both properties is approximately $4,088,557 plus GST.
Colliers Directors Gareth Fraser, David Burley, and Blair Peterken have been appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 31 August, unless sold prior.
Originally constructed in the 1910s, the three-level character building has masonry brick and concrete panels featuring timber beams retrofitted with steel strengthening elements.
It features striking architecture throughout and has character in spades. Excellent natural light abounds from the central atrium, showcasing exposed ceilings, timber beams, and wooden flooring.
The building was extensively redeveloped and upgraded in 2014-15. The seismic upgrade was completed, interior refreshed, atrium cafe added, and social hubs included. The roof of the main building was also replaced, while the bathrooms were upgraded recently.
The property features lift access to all floors and is located near a host of local amenities, while offering convenient access to the motorway network. Occupants can also walk to Auckland’s CBD.
Fraser, Auckland Director of Investment Sales at Colliers, says this is the most prestigious city fringe asset to be presented to the open market this year.
“This is an iconic, high-profile building that will hold significant appeal for buyers given its trophy status, quality tenants and lease terms, and the extensive potential to redevelop the property for future use,” Fraser says.
“There are strong tenant covenants and further room to grow the rental stream via a combination of increasing existing rentals to market levels and re-leasing some minor vacancies in the building. This could increase the total annual rental income across both properties to approximately $4,466,446 plus GST.”
Burley, Associate Director of Investment Sales at Colliers, says the buyer will have the opportunity to acquire a prime site in one of Auckland’s most tightly held areas.
“The property is located in a proven commercial and retail precinct, which is surrounded by a distinguished residential catchment that is experiencing ongoing growth,” Burley says.
“The new owner will have a top-tier property to work with and will be in a position to shape the look and feel of Auckland’s city fringe for the future.”
Peterken, Director of Capital Markets at Colliers, says the Mixed Use zoning of the property will provide the buyer with a wide range of possibilities.
“Future potential options include activating the ground floor with a premium retail offering, positioning it as a high-end hotel, or building exclusive residential apartments that could be expertly crafted given the existing character of property,” Peterken says.
“There is an opportunity to add significant gross floor area to the site and the ownership of the additional 59 car parks at 1A/130 Saint Georges Bay Road underpins this.
- Article supplied by Colliers
