Educational investments
University and polytechnic tenants provide a level of comfort in these two buildings, writes
Two buildings with top-flight educational or government tenants are on the market.
In Auckland, 1-11 Short St, a nine-level central city office building, has a long-term lease in place to The University of Auckland.
Built in 1971, the 4950 square metre building is home to the university’s Centre for Continuing Education and has been substantially upgraded for educational use.
The university has a lease with rights of renewal until 2029.
JLL agent John Binning said it was an opportunity to invest in Auckland’s CBD, ‘‘with the comfort of knowing you have a long-term tenant in place’’.
It currently earned rental income of about $1,020,000 per annum, ‘‘which appears to be approximately 20 per cent underrented’’.
He noted a number of neighbouring office buildings had been converted for residential use and when the university’s leased expired this was one possibility.
Location-wise, Binning said the 1342 square metre site was just around the corner from the university’s main buildings, the Auckland High Court, Vector Arena, the Pullman hotel, the train station and Britomart.
Two carparking levels on the Anzac Street side of the building offer secured undercover space for 46 vehicles.
Two of the levels have large, irregular floorplates and a higher than normal ceiling height of 3.2 metres, allowing for internal lecture rooms.
A further four levels of office space above are about 620sqm in size and another 400sqm space sits on the top floor.
Meanwhile, at the other end of the country, Dunedin’s 360 Cumberland St property is also on the market.
Home to Otago Polytechnic and the Ministry of Social Development, the site is zoned for largescale retail.
It comprises of two 1950s buildings, which are both at least 100 per cent of New Building Standard, along with a 270-space car parking building.
JLL agent Chris Harding expected investors worried about seismic ratings would be interested.
‘‘In a time of uncertainty for many parts of the country, where investors in other cities are having difficulty securing funds and insurance, this 100 percent NBS building represents a solid investment,’’ he said.
The property is in 13 titles, set on an 8,088sqm corner site, with a total net lettable area of 4,900 square metres. The parking building is leased largely by Wilsons Parking.
Under the council’s reviewed district plan, Harding said it might even be possible to make use of the airspace above and raise its height.
The site was in the CBD ‘‘edge commercial’ zone with a proposed height limit of 16 metres.
‘‘It’s a busy part of town in terms of passing foot traffic, as it is right next to the University of Otago.’’