"This heritage-listed property has been registered as Category 1 under the Historic Places Act in recognition of its aesthetic, architectural and social significance.
"Built in the 1850s, its ornate façade and other decorative details make it a rare surviving example of a Victorian-era 'row' public house in central Auckland.
"Its social importance is tied to the property's history as one of Auckland's longest-running licensed premises.
"It is still operated as a pub by longstanding hospitality operator The Social Club Limited, which leases the entire three-level building plus basement.
"With a new first-floor venue having recently opened, the tenant has demonstrated significant goodwill ahead of its next 10-year lease renewal in September 2020."
Ongley says rental growth is built into the lease, with the next review to CPI due in September. A further review, to the higher of CPI or market, is due to take place on renewal.
Peter Herdson, national director of capital markets at Colliers International, says the property represents a boutique investment proposition.
"Relative to other Auckland CBD assets, 12 Vulcan Lane represents affordable value. You'd be hard-pressed to find another character building in such a prized location."
Herdson says Vulcan Lane is at the epicentre of Auckland's retail, hospitality and commercial activity. "It is hugely popular with tourists, who are attracted to its charming Victorian-era streetscape, and with CBD residents and workers, who flock to its hospitality offerings.
"Vulcan Lane forms a pedestrian link between Auckland's Queen St and O'Connell St, at the heart of the legal precinct.
"It is well positioned between Shortland St and Durham Lane East, making it a key thoroughfare between the Queen and High Street retail strips."
Auckland CBD specialist Adam White, of Colliers International's investment sales team, says the ground floor is a licensed bar trading as the Queen's Ferry Hotel.
"On the first floor, the tenant has spent a significant amount of money fitting out a new licensed venue, John & Maise Cocktail Bar, now open to the public.
"The top floor is used as a management office and storage, while the basement is used as a cellar. Access to all floors is via a stairwell on the front-eastern corner of the building."
White says service access to the back of the building is by way of a narrow lane that extends from the rear behind the neighbouring properties to the west. It is entered via a lockable pedestrian doorway between 4 and 6 Vulcan Lane.
White says the opportunity to buy a fully-leased freehold building in Vulcan Lane may not arise again for some time.
