"Situated on a 1436sq m leasehold site, the property occupies a prominent ridge at the city end of Parnell Rd, in Parnell's thriving retail, hospitality and commercial precinct. The location offers good access to nearby transport amenities, including the Parnell Train Station, motorway interchange, bus routes and cycleways.
"With Auckland's retail and office vacancy rates at near historic lows, investors have a real opportunity to build upon the property's excellent fundamentals and add significant value."
White says the mixed-use commercial building offers dual street frontages to Augustus Terrace and The Strand.
"The property comprises 886.5sq m of workshop and showroom retail on the ground floor; about 20515sq m of office over three mid-floors and two levels of car parking on the top floors.
"The ground floor units have a high-profile frontage to The Strand, while the office and car parking levels are accessed from the fourth floor via Augustus Tce.
"The Augustus Tce frontage has been completely refurbished in recent years, to an attractive modern standard. Similar plans are in place for The Strand frontage."
Burley, who specialises in Parnell commercial real estate, says the ground floor units are on long-term leases to automotive users Escape Campervan Rentals and Europa Auto.
"Accessed directly from the road via roller doors, the units are predominantly open-plan, high-stud workshops with painted concrete floors, high-bay suspended industrial lighting, exposed concrete ceilings and painted perimeter brick walls. The units share bathroom, shower, locker room and storage amenities. Mezzanine floors in both tenancies offer a mix of office and storage space."
Burley says access to the three office floors is via lifts and stairwells from the Augustus Terrace lobby.
"The floors are partitioned into a total of 22 office suites, along with shared bathroom and kitchen amenities, accessed via communal hallways. Offices are generally fitted out to a reasonable standard, mostly with carpeted floors and suspended or lined ceilings.
"The suites are predominantly open plan, although a number of tenancies have been attractively partitioned to provide separate offices and meeting rooms. Tenants to the northwest of the property enjoy ample natural light, particularly those on the corner. This is enhanced by generous stud heights of up to 3.15m."
The two parking levels have spaces for 71 cars, including four visitor parks. The main parking floor is level with Augustus Terrace, while the top parking floor is accessed via a ramp.
In addition to the office, retail and car parks, income is provided by telecommunications masts and two billboards. Located on the northern and southern exterior walls, the billboards have prime visibility to passing traffic on The Strand.
White says the property earns a gross annual market income of $1,134,734 with the office leases accounting for the largest share. The offices earn 57.0 per cent ($646,744) of the total annual rent, followed by 22.4 per cent ($253,871) from retail, 15.2 per cent ($172,484) from the car parks, and 5.3 per cent ($61,635) from the billboards and telecommunications masts.
The property is on a 21-year perpetual ground lease of $155,000 a year plus GST, with the next rental review not until September 2033. With operating expenses of $351,650, which includes the ground rent of $155,000, the property now earns a total net income of $783,084 a year.
White says add-value investors have the opportunity to grow that income further by refurbishing and repositioning the asset.
"The building is now 93 per cent leased, providing opportunities for the savvy investor to capitalise on the strong demand for good city fringe office space," he says.
"The property's generous Business Mixed Use zoning also allows for future redevelopment in this sought-after location."
Burley says the property is well located on The Strand – one of the main arterial routes through the desirable city end of Parnell.
"The Strand's northeastern end connects to Quay Street and Tamaki Drive, with access to the Ports of Auckland and the affluent eastern suburbs.
"Its southwestern end has access to Auckland CBD via Beach Road, the motorway network via Stanley Street, and Parnell Road via Parnell Rise."
Augustus Terrace is a prominent ridge road that runs parallel to The Strand, with views over the waterfront and the Ports of Auckland. Its main points of access are via both Parnell Road and Parnell Rise.
Burley says Parnell is one of the best-established suburbs in Auckland.
"It offers a distinctive village atmosphere along with an appealing mix of residential, retail and commercial premises, right on the doorstep of Auckland's CBD.
"Furthermore, Parnell's commercial renaissance is continuing due to the introduction of several trendy businesses and restaurants and the newly opened Parnell Train Station."
"The property is perfectly located within walking distance of the Auckland Domain, University of Auckland, Auckland Hospital, the ASB Tennis Centre and the Spark Arena."
It is also set to benefit from the Parnell Business Association's Strategic Framework to connect every part of Parnell.
"To be initiated in the coming years, a major focus of the plan will be to stimulate east and west linkages.
"An upgrade of St Georges Bay Road, improved linkages to Parnell Train Station and the Domain, an upgrade of Heard Park and development of potential laneways are all part of the aspirational outcome of this plan."
