Makeovers throw new light on Parnell jewel
A multi-storey commercial building in the heart of Parnell on Auckland’s city fringe, presents buyers with the opportunity to acquire a split-risk investment property in a sought-after location.
7-9 Falcon St, Parnell, has approximately
1132sq m of total floor area on a 620sq m site that’s zoned Business–Mixed Use under the Auckland Unitary Plan.
With frontages to both Falcon and Cheshire streets, the property has two levels of basement parking and three levels of offices above.
Tenants include Bachcare, James McCourtie Textiles, Avant Group and Aspen Pharmacare.
The total annual net rental income from the property is $604,655 plus GST and outgoings.
The location is a major drawcard, just one block from the bustling Parnell Rd village, with world-class amenities in the form of restaurants, bars and fashion retail.
The motorway network is easily reached and multiple bus routes and the Parnell train station are short walks away.
Colliers and JLL have been jointly appointed to market the property for sale via deadline private treaty closing at 4pm, Thursday December 7, unless sold prior.
The building was originally constructed in the late 1980s.
It has undergone both external and internal refurbishments since then, resulting in a beautifully presented asset with an internal courtyard providing excellent natural light to each level.
David Burley, Auckland director of investment sales at Colliers, says the split-risk nature of the investment will hold appeal for buyers.
“The existing occupants have leases in place that have final expiries ranging from
2025 to 2031, ensuring there will be consistent rental income,” Burley says.
“All of the agreements include rental reviews in 2024 providing future rental growth as well.”
Kevin Reardon, metro Sales Broker at JLL, says Parnell is a keenly sought location among occupiers and has long been viewed as one of Auckland’s most desirable suburbs.
“Parnell offers a unique village atmosphere along with an appealing mix of residential, retail, and commercial premises right on the doorstep of Auckland’s CBD,” Reardon says.
“The accessibility to transport networks as well as the surrounding hospitality offerings make for an excellent environment for people to live and work.”
Kris Ongley, director of investment sales at Colliers, says properties that have mixed use zoning are always in demand among investors given the designation provides long-term flexibility.
“The zone is typically located around centres and along corridors served by public transport,” Ongley says.
“It provides for residential activity as well
as predominantly smaller scale commercial activity that does not cumulatively affect the function, role and amenity of centres. The zone does not specifically require a mix of uses on individual sites or within areas.”
Tommy Zhang, commercial and investment sales broker at JLL, says the highly functional property has served the occupants well and will make an outstanding addition to the portfolio of the new owner.
“The property has a strong mixture of compelling investment fundamentals such as established tenants, a desirable location, built-in rental growth, and favourable zoning,” Zhang says.
“With Christmas fast approaching, now is the time to acquire a high-quality asset before the end of the year.”