CBD tower with plenty of options
A medium sized Auckland CBD commercial property is for sale, offering a mix of mainly education and retail tenants.
The 4024sq m13- level building, on a 607sq msite at 3- 15 Wakefield St, will sell by deadline private treaty, closing December 1, unless sold earlier by negotiation. Featured in Bayleys’ latest Total Property portfolio, it is being marketed by Stephen Scott and Colin McKenna of Bayleys Auckland office.
Built in 1976- 1977 by Fletcher Construction, for what was then the Inland Revenue Service ( now the IRD), the concrete- framed and floored building has an Initial Evaluation Procedure ( IEP) seismic rating of 90 per cent of New Building Standard. The premises comprise two levels of retail space totalling 718 sq m with 3305 sq m of office space above.
The largest education tenants are Quantum Education, which specialises in travel and tourism and business and computing courses, and the Wellington Institute of Technology, which has been operating for over 100 years and provides a comprehensive range of courses to almost 11,000 students. Its main campuses are in Petone and Wellington.
The two main retail tenants are a copy centre and mini supermarket. The office floors comprise three podium levels of 431- 432sq m and seven levels above of 250- 254 sq m.
McKenna says a number of leases are short term and this provides options for purchasers.
“It opens up opportunities for an owner occupier to secure contiguous floors and would also enable an investor to strengthen the property’s leasing profile.
“The current owner already has a well- established education provider very interested in leasing the top three floors for six years from early next year as well as taking building naming rights. This would increase the building’s net indicative annual rental income to just over $ 1 million,” says McKenna.
“However, the vendor has decided not to finalise any new leases at this stage so as to leave all options open for the next owner.”