Office tower in favour after seismic upgrade
"This building and its location also retains future potential for conversion to student accommodation."
Matthew St Amand, CBRE
A large Wellington office tower, which underwent a $2 million seismic upgrade following the 7.8-magnitude earthquake last year, is up for sale.
Eagle Technology House on Victoria St has been put on the market by its owner, Victoria Trustees Wellington, after the completion of the earthquake strengthening project.
The building was one of 80 the Wellington City Council earmarked for more invasive testing, after a Government investigation into the damaged Statistics House on Customhouse Quay revealed buildings with similar characteristics should be prioritised for detailed inspections.
As a result, structural engineers carried out the investigations and found only minor non-critical damage.
Originally built in 1989, the 11-storey building has three ground-floor shops, 33 car parks and nine floors of office space.
As at September 2015, the building’s rateable value was $17.5m. It last changed hands for $23m in 2008.
The property is 83 per cent leased, and generates a net income of about $1.71m per year, taking into account a nine-year conditional lease agreement with the New Zealand School of Tourism (ACG). This agreement remains subject to final approval.
CBRE Wellington managing director Matthew St Amand said Eagle Technology House had ‘‘gained favour’’ as office space as a result of historically low vacancy rates in the city.
‘‘However, this building and its location also retains future potential for conversion to student accommodation.’’
CBRE Wellington associate director Rick Stace, who was comarketing the property, said recent conversions, such as Capital Hall at 143 Willis St, had helped but not solved the student accommodation squeeze.
He said the location had seen ‘‘significant gentrification’’, with the high level of amenity making it attractive to tenants.
‘‘This will be further enhanced with another major development planned for the area.’’