A multi-level character office building in the highly sought-after Auckland suburb of Parnell is available for purchase and will draw the attention of investors and owner-occupiers.
9 Augustus Terrace, Parnell has 3746sq m of total net lettable area spread over three levels on a 2013sq m freehold site that is zoned business-mixed use under the Auckland Unitary Plan.
With four street frontages spanning about 180m in total across an entire block, which is extremely rare, the property benefits from high levels of visibility. The open-plan offices provide exceptional functionality for the occupants.
The building is currently leased to well-known architects Jasmax, and Rush Digital, although Rush Digital have exercised their right to exit their lease early. The vendor is willing to guarantee a net annual underwrite up to $1.6 million plus GST until the expiry of the existing leases in March 2027. This is supported by a total net annual rental income of $1,349,802 plus GST from the current leases. There are 71 car parking spaces – 58 stacked and 13 single – providing convenience for the existing tenants.
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Parnell is within easy walking distance of the CBD and Auckland’s waterfront. Motorway access is available via Grafton Gully and the property is well positioned to take advantage of public transport, as several bus routes travel via Parnell Road.
Colliers directors Blair Peterken, David Burley and Peter Herdson have been exclusively appointed to market the property for sale and are taking expressions of interest closing 4pm, June 26, unless sold prior.
Originally constructed in the 1960s, the building has an industrial shell, but an extensive refurbishment took place in 2008. Improvements included the addition to the car parking and a modern fit-out.
Peterken, director of capital markets at Colliers, says there are multiple options available to buyers.
“There is considerable holding income on offer while the new owner plans their future moves,” Peterken says.
“For passive investors, there may be the possibility to arrange new lease terms with the existing tenant. Investors may look to add value by introducing new tenants to boost the income of the property by bringing it in line with current market rates.
“Alternatively, owner-occupiers might view this building as the key to their next moves for their business and look to acquire it.”
Parnell is steeped in history and residents and visitors can experience a blend of historical and modern influences in the area. Boutique retail, cafes, and restaurants are located on Parnell Road, while a mixture of office and upcoming luxury residential apartment developments surround the subject property.
Burley, Auckland director of investment sales at Colliers, says Parnell’s mixture of fashion, home decor, and jewellery stores makes it an in-demand shopping village.
“The combination of its local cuisine, access to green spaces, and proximity to Auckland’s CBD have long made Parnell an enticing suburb for residents and businesses,” Burley says.
“Properties in the area remain tightly held among owners so this property represents a chance to acquire a piece of this keenly sought suburb.”
Herdson, national director of capital markets at Colliers, says ongoing developments in Parnell continue to add to the attractiveness of this desirable location.
“Luxury apartment developments in the suburb include the Elysian, Edition, York House, and One Saint Stephens, which will contribute to adding more residents to this already popular spot,” Herdson says.
“The business-mixed use zone is a sought-after designation for properties given the flexibility it affords buyers and is another key selling point as this building could be potentially redeveloped into a residential offering in the future due to its north-facing position.
“Assets of this calibre in Parnell are rarely presented to the open market and we encourage all interested parties to reach out to us to explore their options.”
- Supplied by Colliers
