K Rd corner site for sale
A high profile commercial building on the corner of Karangahape Rd and Upper Queen St is up for sale for the first time since being built as a bank premises 25 years ago.
Located on 359sq m of land at 122-130 Karangahape Rd, the property generates net annual income of $164,958 from a lease to ANZ Bank. It is being marketed by Matt Lee, Quinn Ngo and James Chan of Bayleys’ international division and is among a wide range of commercial and industrial properties which will go under the hammer on May 16 as part of Bayleys’ next Total Property portfolio auction, unless sold prior to that date.
The three-level building was originally home to the National Bank when it was completed in 1992. Following its acquisition of National Bank, ANZ relocated from another location on Karangahape Rd and took over the lease on the property.
“The building is very well situated on one of central Auckland’s busiest intersection offering huge brand exposure to high volumes of traffic along K Rd, Queen St and Upper Queen St, so it’s not hard to see why ANZ would want to position itself there,” says Lee.
New Zealand’s biggest bank has perpetual three-year rights of renewal in its lease and exercised its most recent renewal in August 2017. Its rent is also reviewed to market every three years each time it exercises its right of renewal.
ANZ Bank occupies the whole premises which has an Initial Evaluation Procedure (IEP) seismic assessment of 100 per cent of New Building Standard.
“It’s an attractive, distinctively designed building with a double level atrium entranceway providing additional natural light,” says Lee. “It’s been solidly constructed and well maintained with roof repairs undertaken last year.”
The building comprises a ground floor area of 292sq m which contains teller stations as well a strong room and separate offices with a mezzanine floor area above of 65sq m containing staff amenities including a staff room.
A basement area, accessed off Upper Queen St, contains six car parks for customers and staff. Quinn Ngo says a range of public parking facilities are within short walking distance of the building.
“The property is also surrounded by an interesting mix of retail outlets, cafes, eateries, entertainment and service outlets plus prominent mixed use office and retail buildings such as the Ironbank Building and St Kevins Arcade,” says Ngo. “It is in the heart of a vibrant commercial and residential precinct, which has undergone considerable rejuvenation in recent years — with a number of buildings and sites having been converted or redeveloped to higher intensity mixed commercial and in some cases residential uses.”
The property is zoned Business — City Centre (Karangahape Road Precinct) which seeks to maintain and enhance the area’s distinctive form and street scape character and has a height limit of 35 metres.
Longer term, James Chan says should ANZ ever decide to relinquish its lease on 122-130 Karangahape Rd, a redevelopment of the site could potentially add considerable further value to the property.