Major development opportunity at big, well-placed Queen St site
The second largest landholding on Queen St is for sale – presenting a significant acquisition and development opportunity.
450 Queen St is a strategic parcel of freehold land totalling 4234sq m, with existing improvements including three connected buildings offering significant scope for developers, value-add investors and occupiers.
CBRE capital markets senior director Warren Hutt, who is marketing the property with executive chairman Brent McGregor and senior negotiator Brad Ross, says the site’s size and location provide exciting options for large-scale, highrise redevelopment encompassing close to
34,000sq m of gross floor area, or a significant landbanking opportunity.
“This is a substantial parcel of freehold land with Business—City Centre zoning, accommodating development up to 50m in height and potentially up to 72.5m under the proposed Plan Change 78.
“Under current zoning rules, a building comparable to the Seascape tower on Customs St East can be developed by right, presenting an unparalleled opportunity to deliver a project of significant scale on one of the largest development sites available in central Auckland.”
McGregor says urban regeneration and renewal is already under way in the immediate locality, with over $2.2 billion of projects either recently completed or under way. These include accommodation, data centre, education, office and public infrastructure developments.
Ross says the property, which is offered for sale by expressions of interest closing on Thursday March 14 at 4pm, also offers the opportunity to repurpose the existing buildings, which provide large floorplate accommodation priced well below replacement cost.
“The existing structures are currently configured for office and education use but the large floorplates provide flexibility for alternative uses. The location could be suitable for a wide variety of commercial occupiers, including last-mile distribution, self storage, traditional or dark store supermarket or other retail, as well as medical or education.”
The buildings on site provide 9490sq m of lettable area and 173 carparks, currently generating holding income of $949,378 a year from leases to government services, hospitality and commercial parking tenants.
Hutt says student accommodation and apartments both present compelling development opportunities.
“This expansive site is considered ideal for high-density residential development. We are expecting to receive interest from buyers considering student accommodation developments, given the location within 500m of both the University of Auckland and Auckland University of Technology, as well as K Road with its eating and socialising options.”
There is a significant under-supply of student accommodation in central Auckland, with the University of Auckland receiving 8500 applications for its 4500 beds in 2022.
McGregory says build-to-rent or build-to-sell apartments are also expected to be on buyers’ radars, given the site’s location on the edge of the CBD and within Auckland Grammar and Auckland Girls’ Grammar school zones.
MBIE data shows rents for CBD apartments grew by 15 per cent in the year to June 2023.
The property has three road frontages and is behind only Commercial Bay in the list of Queen St’s biggest sites.