A property that has all the attributes to be both a defensive and profitable investment.
Auckland, October – At the heart of one of New Zealand’s most significant medical precincts pulses an opportunity.
99 Grafton Road is for sale by deadline private treaty closing Wednesday 25 November, marketed by JLL sole Agents Alex Wefers, Euan Stratton, and Jason Armstrong.
It comprises a three-level office building that includes a basement carpark with stunning harbour views from the top floor. The property is located opposite the Auckland City Hospital and Starship Hospital and within 500 metres of the University of Auckland’s Faculty of Medical and Health Sciences.
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Built in 1986 on a freehold corner site extending more than 1,250sqm, the building holds an A+ Grade seismic rating with around 1,390sqm of floor area across the three office floors boasting around 47 metres of street frontage to Grafton Road and around 26 metres of frontage to Ferncroft Street.
Established in 2002 by the Starship Foundation as the ‘Puawaitahi’ child protection multi agency centre, the property has been occupied by longstanding government tenants for an incredible 18 years – the New Zealand Police, the Auckland District Health Board, and the Ministry of Social Development.
“For 18 years the three tenants have worked together as a cohesive unit, interlinked throughout the building with shared use of common spaces,” says JLL Agent Alex Wefers.
“They have all recently exercised their Rights of Renewal for a further three years, allowing the property to return approximately $402,000 per annum.”
Stratton says this is such a compelling investment in today’s times as more important than ever before is the need for resilient tenants under challenging economic circumstances
“This property provides a secure income with longstanding government tenants in one of Auckland’s most established city fringe locations,” says Stratton.
“We’ve seen unrelenting demand recently for properties that are medical facilities or even merely in the vicinity of them as they’re considered to be defensive assets.”
While it is providing secure income today, 99 Grafton Road is also well positioned for the future with favourable mixed-use zoning that allows developments for up to 27 metres in height.
“Coupled with Auckland Grammar zoning, the location is underpinned by growing demand from the healthcare sector to provide genuine long-term redevelopment potential for apartments, hotels, and accommodation for students, hospital visitors, and workers,” says Armstrong.
“There are a number of attributes that appeal to a variety of medical-related and non-associated businesses including its close proximity to the CBD, motorway network access, the University of Auckland and of course the Auckland City Hospital.”
