Bite into buildings with real teeth

The red-painted building at 83 Albert St has its office entrance on Kingston St, opposite the Auckland District Court. Photo / Supplied

Two character buildings in central Auckland, at 83 and 85 Albert St, have been put on the market by the four dentists who own them and established practices there.

The dentists, who graduated together from Otago Dental School in the 1960s, purchased the Albert St buildings in 1987 and established the Proudmouth dental surgery. "After almost 22 years of ownership, the dental partners have decided it is now time to offer these two desirable buildings for sale," says Michael Greer, senior broker with Barfoot & Thompson's Commercial city office, who is marketing the two properties for sale by deadline private treaty closing 4pm on November 17.

"Over the years both buildings have been superbly maintained and refurbished in recent times," Greer says.

"Built in the 1920s, the buildings are distinctively painted and have a protected historic listing under council demolition controls, plan change 5."

The red-painted building at 83 Albert St is a four-level structure providing ground-floor retailing, with good character office accommodation on the first and second floors. The third floor comprises basic quality office/workshop space which was added to the roof inside the parapet level at a later date.

The basic construction of 83 Albert St constitutes concrete foundations, reinforced concrete framing and floors, plastered exterior walls and a mix of metal and membrane roofing. The building retains its original window joinery and decorative parapet around the roof line. A board room on the second floor retains the original wood panelling, with a striking ceiling and lights.

The exterior has been repainted within the past seven years, and the roof was replaced at a cost of $25,000.

The ground retail space, occupied by Cushla Fashions, has plastered concrete walls and ceiling with exposed beams, while the Court Jester cafe tenancy on the same level has a suspended ceiling. The first and second-floor tenancies have a mix of exposed concrete beams and suspended ceilings.

"The rooftop terrace is ideal for outdoor relaxation with views, and the structure retains many of the original features," Greer says. "The entrance lobby to the office area is from Kingston St and has since been attractively renovated. There is stair access only to the upper levels following the removal of a lift."

The building sits on a freehold site of 287sq m with a total lettable area of 846.40sq m. Located at the south western corner of Albert St and Kingston St, it is well placed in relation to the CBD. The Queen St retailing precinct is located less than 200m to the east with easy access to the waterfront and motorway systems. The building is opposite the Auckland District Court and across from a public car park and a residential apartment tower.

Next door, at 85 Albert St, is a three-level, renovated blue-painted building fronting on to Albert St and occupied by Proudmouth Caring Dentistry. The building occupies a site area of 123sq m with a net lettable area of 282.6sq m. The ground floor is used as the reception centre, with dental suites on the upper levels. The general construction is concrete post with beam structural frame, with concrete floors and the external walls mainly of brick.

The front facade is plastered, with original wooden joinery on the upper floors and a long run iron roof. "The site is designated as being pedestrian-orientated, and there is no height limit apart from those imposed by various view protection shafts," Greer says.

The basic floor-area ratio permitted on the site is four to one, increasing to a maximum total floor area ratio of 13:1. The existing floor-area ratio achieved is about 2.8:1, which is below the basic permitted floor area.

Greer says further development of the site is viable only with the adjoining properties giving a strategic upside by being purchased together.

Rydges Hotel is close by, as is the SkyCity Casino to the south of the property including two hotels, a bus terminal and the Sky Tower.

"There is extensive car parking beneath the Casino and in the finance centre close by, and there is a bus stop immediately in front of 85 Albert St," Greer says.

He says the tenants for both buildings are a mix of professional and retail businesses, including a well established cafe. Outlets benefit from reasonably strong pedestrian flows between Victoria St and the district court.

All leases have two-year rent reviews with tenants paying 100 per cent of outgoings. Lease terms vary from final expiry dates of 2011 through to 2017, and the majority of tenants have been long term. The net annual rental for 83 Albert St is $253,396 plus GST, and for 85 Albert St $84,363 plus GST. Greer says the buildings are well placed for office accommodation and there is always strong demand for character office space close to the Central Business District.

He says both buildings are perfect purchases in the current economic climate for private investors, family trusts, owner-occupiers, and at a later stage, offshore investors.

"The dentists have had pride of ownership, and that is reflected in the presentation of both 83 and 85 Albert Street," Greer says.

"A new owner will obtain a valuable investment promising a secure return in terms of two city buildings that have great presence and profile."