City office tower has nine levels — and more upside
A freehold stand-alone office tower on the corner of City Rd and Symonds St in Auckland’s CBD, anchored by a prominent national private training provider, has been placed on the market.
3 City Rd is fully leased, with the eight tenancies occupied by six established businesses including tertiary education entities, a dental practice, chartered accountancy firm and legal training provider.
Zoned Business—City Centre, the contemporary 5319sq m tower occupies 1528sq m of land. There are
57 on-site carparks across two basement levels and some fully secure parking on Level 2.
The property returns annual net income of $1,500,189 plus GST with tenants on varying lease terms with renewals, and some in-built rental growth, notably from the anchor tenant, Yoobee College of Creative Innovation, which also has naming rights.
Built in the 1980s, the office tower is well-presented, has been refurbished and is seismically assessed at
100 per cent NBS.
Ken Hu, Alan Haydock and Damien Bullick of Bayleys Auckland Central are marketing the property by tender closing 4pm Tuesday 19 July, unless sold prior.
With New Zealand’s borders now open and a wall of investment capital looking for well-returning assets, Hu says 3 City Rd has some strong credentials.
“It’s a quality hands-off CBD investment property which has a sound, proven leasing history and, along with rental upside, there’s also future residential conversion potential given the favourable zoning, good carparking and natural light.
“Office assets have shown themselves to be remarkably resilient as an investment class throughout the pandemic and as global trends show, the return to the physical office is being embraced so we’d expect good quality office property to remain in high demand.”
The building is serviced by two elevators and there are separate bathrooms and kitchenettes on each floor.
The ground floor is accessed via the street-level frontage on City Rd, and is fully leased to two established tenants – Symonds Street Dentist and Marsden Robinson Chow chartered accounting firm.
Levels 1, 2, 4 and part of Level 5 are occupied by Yoobee College of Creative Innovation.
Levels 6 and 7 are occupied by national private training establishment Kauri Academy; the top floor is occupied by the College of Law, a school of professional practice for Australian and New Zealand lawyers.
Haydock says the good spread of risk across tenants will appeal to a hands-off investor, while the value of the underlying land and its scope for redevelopment will resonate with those looking to the future.