Corner site with redevelopment upside in Te Aro
A 1980s office building in an evolving part of Te Aro where residential redevelopment is widespread, has been placed on the market for sale with an opportunity for a new owner to reposition it in the marketplace.
Situated on the prominent corner of Taranaki and Abel Smith streets, the four-level office building is partially tenanted with leases expiring 2024-2026 and returning net passing income of $507,216 per annum.
Tenants include Toshiba, RE/MAX, and NZME, who have moved their staff from the building but kept their equipment on-site and has an active lease through until late-2026.
Mark Walker and James Higgie, Bayleys Wellington Commercial are marketing the property by tender, closing 4pm, November 2.
Last refurbished in 2012 with an interior upgrade, strengthening and bracing, the property has recently been assessed by structural engineers Silvester Clark using the yet-to-be-prescribed C5 method and requires further strengthening.
Walker says the C5 or “yellow chapter” method of seismic assessment has higher resilience thresholds than the current mandated standards for existing buildings, however, engineers have developed a concept strengthening scheme for the property which would bring the building to the required standard.
“The building owners, a charitable trust that supports community initiatives, have front-footed the seismic issues and we understand from the engineers that while the building’s resilience should be addressed to bring it up to the higher seismic thresholds, it is not currently deemed an earthquake-prone building,” Walker says.
Zoned Central Area, the property sits on a 1128sqm corner site with 27 car parks. It has a floor area of 4090sqm, boasts large floor plates and all services are in a central core, making it a prime contender for residential conversion, or for upgraded office accommodation, which is in tight supply in Te Aro.