A modern, freehold commercial property on High Street in the Auckland central business district is up for sale, offering an ideal opportunity for smaller-scale investors in a tightly-held location.
51 High Street is being marketed by Warren Hutt of CBRE’s Auckland capital markets team for sale by deadline private treaty closing on Wednesday October 19 at 4pm.
The three-level building, constructed in the mid 1990s, offers a solid seismic rating and is leased to two tenants, providing a dual income stream, says Hutt.
“This is a great small holding providing a good seismic rating of 80% of new building standard.
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"With a ground floor retail tenancy fronting High Street and an upstairs office or service retail unit, 51 High Street is an excellent asset for buyers looking for an accessibly-priced, split-risk investment in a sought-after location.”
There are very few freehold properties that trade along High Street, with the precinct being very tightly held, he adds.
“Individual investors and family trusts will view this offering as a key opportunity to acquire a small freehold CBD property at an entry-level price point, in a popular location, generating a good low-maintenance income stream.”
Investors looking at long-term development opportunities may also consider the potential to add additional storeys above the existing upper floor to increase the property’s total floor area, Hutt says.
The 470sq m building was constructed in 1995 on the site of an earlier building which was destroyed by fire. It provides very well-presented interior spaces of a good modern standard.
At the time of construction, the original brick basement was retained and strengthened and is now part of the two-level Two Dollar Things store which fronts High Street at ground level.
Two Dollar Things occupies 300sq m of floor area across the two levels, while Sassi Nail Bar occupies a 170sq m space upstairs.
Together, the two leases generate $263,132 in net annual rental income, with immediate income growth certainty from CPI-linked rent reviews built into the leases.
The property occupies a 219sq m site adjoining the Canterbury Arcade, close to Durham Lane which connects High Street to Queen Street.
It is part of the wider midtown CBD locality which is in line to benefit from the opening of the City Rail Link, says Hutt.
“Aotea Station, which will have an entrance just 350m from 51 High Street, will be the country’s busiest railway station when it opens. This will inject significantly more foot traffic into the midtown CBD area, which is very positive for nearby property owners.”
High St retail has demonstrated robustness through the pandemic, with low vacancy rates continuing to be a feature of the street, Hutt says.
“This is an intimately-scaled location with an eclectic mix of retailers situated within easy reach of arcades and lanes through to Queen Street. 51 High Street is very well positioned for foot traffic using Canterbury Arcade and Durham Lane, resulting in good trading for the tenants here.”
- Article supplied by CBRE
