Rare auction: Queen St floor with long-term tenant on the market
An inner-city strata-titled office floor is going under the hammer in Barfoot & Thompson’s auction room at the beginning of next month.
“Located in the heart of the CBD, this fully tenanted premises is superbly positioned and somewhat of a rarity,” says Barfoot & Thompson commercial specialist Agnes Teh. With colleague William Read, she is marketing 7A/109 Queen Street for sale by auction at 10am on Wednesday 8 June unless sold prior.
Teh confirms that the property is a stratum in freehold title with a total floor area of around 216sq m.
“This is an exceptional opportunity to secure a full floor, right on Queen St, with an excellent investment profile,” Teh says.
“The whole premises is leased to a longterm tenant who has been there for over 13 years, and who pays for all outgoings. The same tenant renewed last year for a further
12 years, which now takes the lease term to 31 March 2033.
“Prospective investors will appreciate the security of having an established tenant with a protracted commitment to the site,” Teh says. “Upon expiry, the premises will be ripe for refurbishment or possible conversion to residential.”
The annual net rental is fixed for $60,000 plus GST for the duration of the lease. However the agreement provides a rent abatement for the first three years (1 April
2021 to 31 March 2024) during which time the annual net rent is set at $40,000 plus GST.
The building sits within Business—City Centre zoning under the Auckland Unitary Plan, allowing for intense future development and both residential and commercial activities. With motorway access nearby as well as public transport hubs within walking distance, access to and from the greater Auckland isthmus is quick and easy.
“Locality-wise it doesn’t get better than this,” Teh says. “This offering has solid investment fundamentals and is available at an exciting stage in the evolution of the city’s CBD.”