A high-profile car parking building in the heart of Auckland CBD that is occupied by a single tenant is available for purchase, offering buyers the opportunity to acquire a low-maintenance asset that provides a significant income stream.
Occupying a highly visible corner position at 65-71 Federal Street, the seven-level building comprises 435 car parks on a substantial 1,641sq m landholding.
It benefits from proximity to some of the city's most recognisable destinations, including SkyCity, the New Zealand International Convention Centre, prominent civic facilities, and the bustling Federal Street hospitality precinct.
The property is fully leased to Secure Parking New Zealand until April 2029, providing a secure income stream with built-in rental growth and additional upside through a performance-based turnover rent component.
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Adding to the investment appeal, the property has an existing resource consent for a substantial mixed-use residential development, creating optionality for purchasers seeking both immediate returns and long-term value.
Colliers Directors Peter Herdson and Blair Peterken have been jointly appointed alongside Brent McGregor and Brad Ross of CBRE to market the property for sale via an international expressions of interest campaign closing at 4pm on Thursday 23 July, unless sold prior.
Despite growing public transport investment, CBD parking remains essential for workers, residents, shoppers, hospitality patrons, and tourists.
Herdson, National Director of Capital Markets at Colliers, says the long-term fundamentals supporting centrally located parking assets remain compelling, particularly as parking supply within the CBD comes under increasing pressure.
"The proposed removal of the Downtown Carpark and the reduced provision of parking within new developments are expected to further constrain supply, supporting demand for well-located assets such as Federal Street," Herdson says.
"Whether buyers are seeking a passive investment, a strategic landholding, or a future development opportunity, the property presents multiple avenues for value creation in one of Auckland's most tightly held commercial precincts."
The property's future potential is underpinned by an extended resource consent for a 55-level residential-led mixed-use tower, while its position near Te Waihorotiu City Rail Link station places it at the centre of ongoing transformation in Auckland's Midtown precinct.
Peterken, Director of Capital Markets at Colliers, says the offering presents a compelling combination of immediate income and future optionality.
"Many properties offer either secure cashflow or redevelopment potential, but it is uncommon to find both in a single Auckland CBD asset," Peterken says.
"The purchaser will benefit from a strong holding income stream today while retaining the flexibility to explore the site's longer-term development prospects."
McGregor, Executive Chairman of CBRE, says the property s prime central positioning means it is surrounded by amenities.
"Within moments people can find themselves at award-winning restaurants, while Queen Street's nationally renowned shopping is only a short walk away," McGregor says.
"Many more of Auckland s most popular attractions are readily accessible such as the Britomart precinct, the Viaduct area, and the shopping and hospitality options in Commercial Bay."
Ross, Associate Director of Capital Markets at CBRE, says this eye-catching opportunity will draw attention from local and international investors.
"Assets with this level of future potential are hard to find in such a sought-after location and it is underpinned by a steady rental stream from an established tenancy that includes future income growth," Ross says.
"The new owner will have a considerable array of options to consider for the future."
- Supplied by Colliers
