The 10-level building at 62 Victoria St - at far left - has been extensively refurbished. Photo / Supplied
The 10-level building at 62 Victoria St - at far left - has been extensively refurbished. Photo / Supplied
A 10-level office and hospitality building adjacent to the Federal St food and beverage precinct and the Sky Tower is for sale following substantial modernisation which has drawn a wide range of new tenants.
Located at 62 Victoria St West, the 3513sq m building is nearly fully leased to a total of 14 tenants with a weighted average lease term of just over three years.
Level One is occupied by the popular Glass Goose Bar & Eatery which is accessed off Federal St. The nine levels above comprise refurbished office space.
Featured in Bayleys' latest Total Property portfolio, the property is being marketed by Stephen Scott, Robert Platt and Colin McKenna of Bayleys' Auckland office and is for sale by deadline private treaty, closing at 4pm on Thursday June 29.
Scott says an expansion of the Glass Goose tenancy, a new lease on Level 9, increases in current rentals, and a vendor underwrite on a small amount of vacant office space; is expected to result in an increase in the property's net annual rental income to around $1,214,000 by the end of the year.
Constructed by Fletchers in 1983, the building was formerly AGC House and was substantially refurbished in 2010 with the interior being stripped back to the shell and the exterior also upgraded.
"The office floors on Levels 2-10 have been modernised to a high standard into character office premises with polished concrete floors and exposed concrete walls and ceilings," says Scott. "The office levels have attracted a good spread of businesses, with rental rates ranging between $300 and $400 per sq m plus Opex [operating expenses]. All the tenant fit-outs have been paid for and are owned by the landlord, except for one tenancy on Level 6."
The Glass Goose Bar & Eatery also occupies a covered deck area. Photo / Supplied
The floors are serviced by two Schindler lifts accessed from an attractive ground level lobby. Retail premises on the ground level have been strata titled and sold to four separate owners and are not part of the sale offering.
The Glass Goose, occupying 461sq m on Level 1, comprises the largest tenancy on a 10-year lease until 2025. Entered via a service lane off Federal St, the Glass Goose is modelled on the idea of a glass house with a large dining area and 360-degree bar inside - along with a spacious timber-decked rooftop terrace outside mainly covered by glass roofing which provides natural light.
"The bar overlooks the Sky Tower and Victoria St West and has proved so popular that design work has been undertaken for an additional covered deck space of about 152sq m for the eastern end of the building to cater for more patrons," says Scott.
The building has an Initial Evaluation Procedure (IEP) seismic rating of 76 per cent of New Building Standard (NBS) with a more detailed assessment due to be completed shortly that will be made available to interested parties, says Platt.
The office levels have been modernised to a high standard. Photo / Supplied
"There is a light and air easement registered on the title which restricts any future development above the podium level other than the existing tower," says Platt. "This maintains the light and air amenity around the office tower on all floors above Level 4. Tenants on these floors will therefore have unrestricted views on three sides of the building in perpetuity. Longer term this also enhances the building's appeal for a possible residential or serviced apartment redevelopment."
Platt says the building is in a very strong CBD location, one building away from the intersection with Federal St, the Sky Tower and SkyCity entertainment centre, casino and hotels, with good linkages to Auckland motorway network.
Surrounding properties include a mixture of commercial, residential and short stay accommodation, with a number of older sites being redeveloped. Construction of the new 32,000sq m SkyCity Convention Centre is well underway and will encompass an exhibition hall and plenary theatre plus meeting and function rooms, a five-star 300-room hotel and an additional 1327 underground car parks.
"The project is expected to be completed in 2019 and is set to attract large volumes of additional people and businesses to the locality," says Platt. "Also providing a big boost for the area will be the Auckland City Rail Link's Aotea Station. Its northern entrance will be located nearby on the corner of Victoria Street and Albert Street and is scheduled for completion in 2023/24."
Stephen Scott, Robert Platt, Colin McKenna of Bayleys Auckland office.
