Popular K Rd property well positioned

Situated at 520 Queen St, the building has a frontage to both Queen and Liverpool Streets. Photo / Supplied

Situated in the popular K Rd precinct and across the road from the award-winning Ironbank building, a six level city fringe office building has come onto the market at 520 Queen St.

The building is being marketed by Colliers International brokers Jason Seymour and Frida Mackay for 520 Queen St Holdings Limited, with offers for the 1728sq m two-title property closing on November 19.

The site forms a rectangular-shaped 1785sq m parcel of land with a 37.26m frontage to Queen St and a 35.9m frontage to Liverpool St.

Erected in 1984, the six-level building is fully occupied by a variety of users, including retail outlets on the street level floor, and a language school and offices on levels four and five. Car parking occupies space on the ground floor and is accessed from Liverpool St. In total, the building offers 4262sq m of office space, 365sq m of retail and 57 carparks over a total lettable area of 4617sq m, providing an annual net passing income of $953,788.

The anchor tenant in the building is the New Zealand International Language School, operating as Regent Education, which occupies 2434.5sq m over three floors. Mackay says Regent Education has a 12-year lease term, which brings in an annual total net rental of $496,497.

"This is a solid, long-term tenant which entered into its lease in 2003," she says. "The lease, with three-year rent reviews, is due expire in 2015 with one six-year right of renewal, taking final expiry out to March 2021."

Mackay says levels four and five above the school are occupied by a number of office tenants that include Telelink taking up 395sq m, Hanover Finance occupying 919sq m on a seven-year term that began in September 2006, and New Zealand Direct Com. Limited with 569.5sq m.

Seymour says the property is on the eastern side of Queen St close to the CBD with good access to Auckland's motorways and public transport network. "This property offers a substantial holding income opportunity for a buyer," says Mackay. "Not only is it well located on an elevated site, but it benefits from two street frontages, has large open floor plates, a flexible layout and on-site parking. The property is fully leased to a mix of users which spreads the future vacancy risk.

"In the medium term, there is the opportunity to add value through refurbishment or redevelopment opportunities to take advantage of the building's strategic location."

Seymour says the Ironbank building is an example of the positives changes coming to K Road. "Although it is well known historically for its cafes, boutique shops and nightlife, K Rd links up with Ponsonby Rd, Great North Road and Grafton Bridge, which has now been reopened," he says.

"The street received a $3.5 million upgrade in 2006 and now has cutting edge architecture that will attract new tenants and businesses to the area."