One or both? Options for College Hill pair
With the market scoping out opportunities in Auckland city locations on the back of enduring demand for office space, two strategically located freehold commercial assets in St Marys Bay are expected to draw strong interest.
Currently subject to short-term tenancy arrangements, the fully occupied standalone properties at 27 and 33 College Hill are significantly under-rented in today’s market, with the vendor having to date preserved flexibility after initially considering redevelopment across a wider landholding.
The adjoining properties with favourable seismic ratings will be sold individually or together by tender with Bayleys, closing 25 August, unless sold prior.
Agents say while the two assets differ on many counts and are likely to appeal to two different buyers, it’s possible a single purchaser may see the opportunity to acquire both properties with a view to partial or total redevelopment.
James Were, Cameron Melhuish and Brad Ross from Bayleys Auckland Central are marketing the Business—Mixed Use zoned properties and say the College Hill location speaks volumes in an office market looking to attract and retain staff.
Were said College Hill opportunities are coveted by occupiers and landlords. “The location and high level of amenity in the broader area underscores the valueproposition, as evidenced by demand for space.
“There’s minimal vacancy anywhere in the area and given the value-add upside these two properties offer, there are significant rental gains to be unlocked.
“Equally, an astute owner-occupier will recognise the inherent benefits of purchasing property here, as College Hill is the segue between the CBD and the desirable indemand city fringe suburbs and has always held its value.”
The building at 33 College Hill is a professionally-presented and fully-occupied office property, with expansive views of Auckland’s cityscape from the upper levels.
Set over five levels, the recently refurbished building offers good natural light, versatile floor plates, several deck areas, generous carparking and a unique high-stud lower ground level that provides for a diverse range of potential uses.
With a total 1631sq m of net lettable area excluding decks, this building sits on a proposed 855sq m landholding.
The upper three levels provide office accommodation and amenities above a lower ground level of covered secure carparking for 22 vehicles and a high-stud warehouse area.
There is currently annual holding income of $379,744 plus GST and outgoings and an estimated annual net market rental of $894,000 plus GST and outgoings.
It is occupied by GFC Films production company, Bastion Shine creative consultants and ForthCo, a private equity firm.
Melhuish said investors could look to lift rentals for a more attractive return through leveraging the strong occupier demand for quality city fringe accommodation, while other buyers may wish to occupy or redevelop, either as office and warehouse premises or residential accommodation.
“These short-term leases provide opportunities for owner-occupiers to take over part or all of the building, while developers could consider conversion opportunities provided for by the underlying zoning.
“The subject properties are within walking distance to Auckland CBD which aligns with the Government’s National Policy Statement around greater intensification in areas that have good access to existing services, public transport networks and infrastructure.
“Equally, there could be potential for medical use with the healthcare sector clearly in demand and the proximity to Mercy Hospice.”
On 589sq m of land, 27 College Hill comprises 355sq m of floor area with character high-stud commercial space at its upper level and two office/warehouse tenancies below providing rare warehouse accommodation in this popular locality.
Fully-leased, there’s current annual holding income of $104,278 plus GST and outgoings from tenants EBO Electric Bikes, Ironclad Pan and Hancock Industrial.
Significantly under-rented against current market levels, the property has an estimated annual net market rental of $257,400 plus GST and outgoings.
“Again, there’s inherent flexibility and opportunity to add value to this versatile building and like the adjoining property at number 33, the underlying zoning allows for broad use,” said Ross.