A multi-level office building in the sought-after Auckland city fringe suburb of Mount Eden offers buyers of all kinds the opportunity to purchase a high-profile asset with a steady rental stream and significant long-term upside.
264 Mount Eden Road, Mount Eden has approximately 2,138sq m of total net lettable area on a 2,173sq m freehold site that is zoned Business – Mixed Use Zone and Residential – Mixed Housing Suburban Zone under the Auckland Unitary Plan.
The property has two existing corporate tenants and the combined total annual rental income from the property is $717,716 plus GST.
The building offers 70m of frontage to Mount Eden Road and more than 17,000 vehicles pass by this prominent site every day. There are also 52 dedicated car parks providing convenience for occupants.
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With Mount Eden’s popular village only minutes away, the property will hold strong appeal for buyers. The Maungawhau station for the City Rail Link, which is due for completion in 2024, will be in walking distance.
Colliers Directors Jonathan Lynch and Josh Coburn have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 17 August, unless sold prior.
Originally constructed in 1987, the property underwent a major addition two years later and serves as a highly functional office environment for the current tenants. The building has also been refurbished in recent years to meet modern demands.
Cubic Defence New Zealand Ltd leases 280sq m of ground floor entry space and office area, and the 929sq m first floor.
Their six-year lease, which began in 2019, provides $388,185 plus GST in net annual rental income and has one further right of renewal for three years, leading to a final expiry of September 2028. A market rental review is scheduled for October 2025.
Apex Insurance leases the 929sq m second floor and their six-year lease began in August 2019 and provides one further right of renewal for three years, leading to a final expiry of July 2028. The lease provides $329,531 plus GST in net annual rental income.
Lynch, Director of Investment Sales at Colliers, says this property shapes as a highly desirable purchasing opportunity.
“This is a high-profile property that is strategically located in the sought-after Double Grammar Zone and enjoys excellent road exposure on one of the main arterial routes in Auckland,” Lynch says.
“It is well-served by a range of local amenities, while it is also close to major roading networks and there will be further convenience for occupants when the City Rail Link is opened in the near future.
“The new owner will be able to enjoy a steady rental stream from the established tenants in this prime split-risk investment.”
Coburn, Director of Site Sales at Colliers, says the dual zoning of the property means there’s a range of potential future options that could be explored given the prominence of the location.
“The Business – Mixed Use Zone is typically located around centres and along corridors served by public transport. The zone provides for residential activity as well as predominantly smaller scale commercial activity that does not cumulatively affect the function, role and amenity of centres,” Coburn says.
“The Residential – Mixed Housing Suburban Zone is the most widespread residential zone covering many established suburbs and some greenfield areas.
“Much of the existing development in the zone is characterised by one or two storey, mainly stand-alone buildings. The zone enables intensification, while retaining a suburban-built character.
“With these zonings in place, the property could be repositioned in the future, or the usage of the site could be intensified, which adds further appeal to what is an outstanding opportunity.”
- Article supplied by Colliers
