Three- level building in Parnell’s heart a ‘ sweet spot’
by Colin Taylor A prominent freehold, three- level commercial office and retail investment property very close to Auckland’s CBD has come up for sale at 177 Parnell Rd.
‘‘ This i s one of the best located properties in Parnell and it’s also very well- maintained,’’ says Jonathan Ogg of CBRE who is marketing it for sale by deadline private treaty, offers closing at 4pm on May 2.
‘‘ The building is in the heart of the retail strip occupying much of Parnell Rd and it encompasses a high standard of office and retail accommodation,’’ Ogg says. ‘‘ It is an ideal investment prospect in the sweet spot of the private investor market, only a short distance from public transport and the city.
‘‘ Fully leased to a vibrant and diverse range of high- quality tenants, this is an excellent passive investment opportunity offering a very good risk spread for investors, thanks to its tenant mix, property standard, enviable location and future upside.’’
The building comprises groundfloor retail and office accommodation, with office space on level one and car parking for 30 vehicles in the basement, accessed via Falcon St.
The building, which was completed in the 1970s, occupies an 837sq m site. With a floor area of 1082sq m, at least $ 657,750 of capital expenditure has been spent on significant refurbishment over the past 10 years.
The ground floor comprises six retail shops with prime frontage to Parnell Rd. The retail tenancies range from 40sq m to 52sq m, including a pro- rata share of common areas.
A central entrance foyer on the ground floor provides access to the three ground- floor office tenancies and four first- floor office spaces.
‘‘ The site is under- utilised particu- larly in light of the council’s Unitary Plan which has created a number of opportunities for intensified growth,’’ Ogg says.
He says the property is leased to a number of well- known companies paying total annual net rent of $ 554,889, including Flight Centre, Hollywood Bakery, Kiwiana Trading selling New Zealand- made gifts and souvenirs, specialist travel agency Cruise About, and The Stylish Man of the male grooming boutique chain.
‘‘ Office tenants in the property are equally t ypical of the high- quality demographic of the surrounding area,’’ Ogg says. On the ground floor i s a dental practice and hygienist clinic, Carabelli Dental, which has occupied the building for the past 18 years. Other tenants are NoCowboys, a finder of reputable tradespeople, and the Australasian engineering solutions provider LEAP.
The largest first- floor tenant i s Eventfinda which creates advertising for event organisers and ticketing services through its website eventfinder. co. nz. Adjacent is electrical engineering company Greet Consulting, which specialises in complex wiring design for prisons, casinos and big commercial complexes.
There’s also Aritech, a private equity firm, and Physio Solutions.
‘‘ The immediate area surrounding 177 Parnell Rd comprises predominantly low to medium- rise commercial, office and retail buildings,’’ Ogg says.
‘‘ Opposite the property are the well- known McCarthy’s Irish pub and the refurbished historic Heards building on Heards Park.’’
Ogg says the property i s on the eastern fringe of the CBD and close to developing transport links.
‘‘ The property is well- served by buses running along Parnell Road every 15 minutes from the city and into the surrounding suburbs. In addition, the completion of the proposed Parnell Rail Station project and proposed city rail loop will dramatically improve the public transport.’’ Motorway access is a short distance away at Stanley St.
Ogg says Parnell Rd is a soughtafter location known locally as Auckland’s ‘‘ Creative Quarter’’. ‘‘ Only minutes from the Auckland Domain, Parnell’s upmarket village shopping area features an international line- up of restaurants, cafes and bars, including Auckland’s largest art gallery precinct.
‘‘ The area appeals to legal, accountancy and other professional services firms.’’
Tourists enter Parnell from a bus stop outside the building.