A rare character building in the heart of Auckland’s CBD is being presented to the market for the first time in 15 years, offering prospective purchasers the opportunity to secure a highly desirable asset with future growth potential.
55 Albert Street, Auckland is a three-level building that includes about 800sq m of building area on a 300sq m site that has dual frontage to Albert Street and urban oasis St Patrick’s Square.
The property has three commercial tenants, returning a total net annual rental income of $173,410 plus GST.
Albert Street is undergoing significant development on a major scale and this property is located in a prized CBD spot, one street away from New Zealand’s premier retail strip of Queen Street.
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The City Rail Link’s Aotea Station, which is currently under construction, is predicted to be the busiest train station in the country and entrances will be located approximately 240m from the property, further improving the accessibility of the site.
Colliers brokers Tony Allsop and Matt Plowman have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 1 December, unless sold prior.
The Grove Restaurant is located on the first floor and they began a seven-year lease in February 2018 and have one further right of renewal for six years with a final expiry of February 2031. Their lease returns $61,453 plus GST in net annual rental income.
Heaven Scent is the top floor tenant, and they are in the midst of a four-year lease that began in May 2019 with two further rights of renewal for five years each. The final expiry is May 2033, and their net annual rent is $40,350 plus GST.
Sumo Sushi is the ground floor tenant, and their lease returns annual net rental income of $71,607 plus GST.
Allsop, director of investment sales at Colliers, says this property is packed with potential in one of Auckland’s most tightly held locations.
“The property will be highly appealing to add-value investors who may choose to design future architectural refurbishments that would add further substance to the site,” Allsop says.
“The building layout lends itself to a residential conversion on the upper floors, which would be a unique residential proposition in a highly strategic location with the bonus of frontage onto one of the CBD’s prized green spaces, St Patrick’s Square.
"A stand-alone freehold building without the restrictions of a body corporate adds further value to the residential potential of the site.
“There is also scope for rental income growth that could be brought in line with existing market rates.
“Alternatively, an owner-occupier may even find the premises is suitable for their needs and they can take advantage of being located in one of Auckland’s long-established thriving commercial precincts.”
Plowman, investment sales broker at Colliers, says the property is located near a host of Auckland CBD’s most vibrant and popular attractions, including the Viaduct, Britomart, and Commercial Bay.
“It’s incredibly rare to see a strategically located building of this nature come to the market in Albert Street. It is surrounded by ongoing high-profile commercial, residential, and hotel developments that will add to the unique feel of downtown Auckland,” Plowman says.
“The building conveys a sense of history and delivers sought-after attributes including brick masonry walls, high stud height, abundant windows on the eastern side, bay windows on the western frontage, and exposed trusses on the top floor.
“Constructed in the early 1900s, the property oozes character, which is complemented by the surrounding buildings. A high concentration of nearby amenities and favourable proximity to motorways and public transport makes this locality attractive to retail and character office uses.”
The property is zoned Business – City Centre Zone under Auckland’s Unitary Plan. This zoning seeks to ensure the city centre is an international centre for business and learning, innovation, entertainment, culture, and urban living.
- Article supplied by Colliers
