A multi-level retail/office building on one of Queen St's largest sites, just 150m from the soon-to-be opened Aotea train station, is for sale for the first time in 20 years.
The dual frontage, 13-level building at 238-242 Queen St is fully leased and currently returning more than $4.1 million a year.
It is being marketed by Whillans Realty Group and is for sale by tender, closing on November 24.
Some 70 per cent of the building’s income is from Cotton On’s flagship retail store and the rest from three Crown-funded tertiary education providers who occupy 78 per cent of the total office space.
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In total, the building offers 9789sq m of lettable area with five office tenants and six retail tenants. Additional income is derived from 50 parking spaces and signage.
Anchor tenant Cotton On has three years remaining on its current lease term with annual 4 per cent fixed rent reviews. The global retailer has one further 10-year right of renewal in September 2024 – coinciding with the opening of Aotea Train Station.
The 2259sq m Cotton On tenancy is one of the largest retail premises on Queen S. It has 20.8m of frontage to Queen St and a 4.71m floor-to-ceiling height.
Whillans’ senior broker Henry Thompson says the property is located in what is already one of the highest pedestrian counts in New Zealand, being just 50 m from the country’s second busiest pedestrian intersection on Queen St. When the underground station opens, the foot traffic will easily trend upwards.
According to Auckland Council, Queen St pedestrian numbers have already doubled since 2012. With its dual frontage, the property offers 34m of retail frontage to Queen St and 35m of retail frontage to Lorne St.
As for the site itself, at 1738sq m and a perfect rectangle, it is one of the 10 largest freehold sites on Queen St between the waterfront and Aotea Square.
Thompson says the property will appeal to a strategic investor who can envisage the urban transformation of the Aotea Train Station on this building and the surrounding area.
With a maximum floor area ratio of 10:1, a bulk and location scheme prepared by Paul Brown Architects indicates a 38-level tower could be developed across the property.
The property is in-zone for Auckland Grammar School and less than 400m from AUT and University of Auckland campuses, which means it could suit conversion to student accommodation, luxury city apartments or a mix of retail, office and residential accommodation. The site would also suit a purpose-built hotel.
“All over the world people are trying to secure sites like this close to central transport hubs. This will be two minutes from the new Aotea station making it ideal for any use,” Thompson adds.
Aotea Station is part of the City Rail Link (CRL), the largest infrastructure project ever undertaken in New Zealand, with a total cost of $4.4 billion. Once completed, it will double the capacity of Auckland’s rail network by linking Britomart Station with Mt Eden Station.
“It will effectively halve commuting times for people travelling between the CBD and Auckland’s western suburbs. The station itself will feature two station entrances, one on Victoria St and one on Wellesley St, both connected by a 300m-long station platform running beneath Albert St,” Thompson adds.
He believes the station will increase foot traffic, drive demand for new retail and hospitality outlets and improve connectivity for CBD residents and office workers, plus increase surrounding commercial property values.
The property holds a 100 per cent seismic rating based on a 2020 detailed seismic assessment. The side core configuration and podium design delivers flexible work space and abundant natural light to the office floors.
Each office floor delivers a typical floor plate of approximately 612sq m with separate male and female facilities. All have windows on all four sides and can easily be subdivided into multiple tenancies with just two internal columns per floor.
- Article supplied by Whillans
