Two adjoining central Auckland properties boasting excellent visibility and multiple street frontages are being presented to the market for sale, offering prospective purchasers the opportunity to acquire prominent assets with significant growth potential.
2-4 High Street, known as the Hotel DeBrett Building, and 23 Shortland Street are only moments away from Queen Street and can be purchased individually or as a combined package.
Spread across two separate freehold titles, the properties are zoned Business – City Centre Zone under the Auckland Unitary Plan. The total land area is 1,053sq m, and there is 3,479sq m of total floor area across both buildings.
These multi-level properties feature a blend of retail and hospitality tenancies alongside Hotel DeBrett, one of the most well-known accommodation spots in the CBD.
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There is a 9.71 per cent vacancy rate across the total floor area presenting an opportunity to grow the combined passing annual income from both buildings of $1,668,233 plus GST.
Situated in a highly desirable central Auckland location, these properties offer convenient access to public transport and a host of popular hospitality spots such as Vulcan Lane and Britomart.
Colliers Directors Blair Peterken, David Burley, and Kris Ongley have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 22 June, unless sold prior.
The site of the Hotel DeBrett building has been used as short-term and hotel accommodation since 1841 and the current building was constructed circa 1925. Seismic works completed in 2008 saw the building brought up to 70 per cent NBS, while it underwent further refurbishment in 2012.
The five-level L-shaped building has 2,854sq m of floor area, the majority of which is made up by the hotel who began a new 10-year lease late last year.
There are eight ground floor retail and hospitality tenancies with varying remaining lease terms and a 148sq m unit that is vacant. The property currently generates an annual passing income of $1,431,604 plus GST.
The four-level building at 23 Shortland Street has 625sq m of total floor area and is home to a restaurant occupying 215sq m on a new five-year lease, as well as two retail tenancies. There is also 191sq m of vacant office space on Level 1 and the passing income from the building is $236,630 plus GST.
Peterken, Director of Capital Markets at Colliers, says there’s a diversified income stream with further room to grow.
“Hotel DeBrett, the anchor tenant of this offering, has expressed their long-term commitment to the site after agreeing to a new lease,” Peterken says.
“The split-risk nature of this investment will be highly appealing to buyers, and there is potential to increase the rental income by leasing the vacant space.”
Burley, Auckland Director of Investment Sales at Colliers, says the highly visible properties are exceptionally well positioned.
"These buildings occupy an enviable location in central Auckland, just a short walk from Queen Street, the city's primary retail strip, while the nearby Britomart Transport Centre is easily accessible,” Burley says.
“Hotel guests and visitors to the buildings can also enjoy a pleasant stroll to popular local attractions such as The Civic, the Sky Tower, and Commercial Bay."
Ongley, Director of Investment Sales at Colliers, says the properties also have future development potential, which will be enticing for buyers with a long-term vision.
“The Business – City Centre Zone provides a host of options for the new owner to intensify the usage of the site,” Ongley says.
“The city centre is the top of the centres hierarchy and plays a pivotal role in Auckland’s present and future success. The zone seeks to ensure the city centre is an international centre for business and learning, innovation, entertainment, culture, and urban living.
“These properties have a sought-after combination of a complementary tenancy mix and room to grow, making it a truly compelling purchasing opportunity.”
- Article supplied by Colliers
