Versatile office floors pixel perfect for investors
Two character-filled office floors in a central city building offer Wellington investors an ideal passive investment tenanted by one of the world’s leading digital marketing agencies.
Totalling 425 square metres (more or less), the seismically strengthened premises at 5 Tory Street are in a prime position adjacent to Courtenay Place and less than 300 metres from the waterfront boardwalk and significant new Convention and Exhibition Centre, Tākina.
Bayleys Wellington salesperson Grant Young says the assets present an exceptional opportunity to acquire a versatile tenanted investment occupied by an exciting tier-one tenant.
“AKQA is a world-renowned creative agency behind some of the most innovative digital experiences, advertising campaigns, and interactive media for globally recognised brands, including Louis Vuitton, Volvo, Nike, Levi’s, TikTok and Buckingham Palace.
“They have 29 offices worldwide, from New York to London, Berlin, Tokyo, Sydney, and Dubai. Their presence in Wellington is a valuable addition to the city’s established reputation as New Zealand’s hub for creativity, technology, and innovation.
“The business occupies interlinked levels one and two, with a contiguous tenancy to April 2027 plus one, three-year renewal right.
“The current lease agreement generates a net annual rent of circa $114,530 plus GST and outgoings per annum.”
Young is marketing the property for sale by tender with Bayleys colleague Mark Walker, closing at 4pm on Wednesday, 24th April 2024 (unless sold prior).
Both office levels provide largely openplan character work areas which interconnect via a large feature staircase.
Bayleys Wellington salesperson Mark Walker says the spaces are high-stud, with attractive design features, including polished timber flooring, exposed brick walls, and timber and steel columns and beams.
Both floors are serviced with staff amenities, kitchens, small balconies, and lift access, providing the potential to rent them separately to increase revenue potential.
“The unit-titled assets are immaculately presented, providing an excellent example of character office accommodation. While the high-profile tenant has recently renewed its lease, offering an effortless investment handover, the potential exists to increase revenue through a split-risk tenancy arrangement or future conversion for residential use, subject to appropriate council consents,” says Walker.
The building comprises six levels in totality, occupied by a mix of hospitality, office and residential apartments on the eastern side of lower Tory Street, bordered by Wakefield Street to the North and Courtenay Place on the southern flank.
“The Courtenay Place precinct is the epicentre of Wellington’s entertainment zone, which has been earmarked for revitalisation as older buildings gradually benefit from seismic strengthening works and refurbishments.
“The immediate area is tightly held by various retail, commercial and hospitality operators, with the new convention centre Tākina – the most significant new central city building in decades - Te Papa, the landmark QT Hotel, and New World Supermarket in proximity.
“Occupying an excellent connected position in our capital city’s commercial heart, the offices provide investors with an opportunity to secure a footprint in a refurbished building, generating immediate income from a globally recognised tenant, with upside from promising future prospects for various potential uses.”