A highly visible 12-level office tower in central Auckland that occupies a prominent corner site will pique the interest of buyers looking to acquire a strategic asset with considerable long-term upside.
63 Albert Street, Auckland has approximately 5,378sq m of total net lettable area on a 1,036sq m freehold site that is zoned Business – City Centre Zone.
The property offers dual street frontages in one of Auckland CBD’s most sought-after streets that is set to be further enhanced by the surrounding developments and improving infrastructure.
The City Rail Link, which is due for completion in 2026, will enhance the connectivity of Albert Street, opening it up to other parts of the city. The subject property will be approximately 180m away from the Victoria Street entrance to the Te Waihorotiu Station (Aotea).
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The building is currently returning approximately $1,603,520 plus GST per annum in passing income through 26 separate tenants with a weighted average lease term of 4.7 years. With 80 per cent occupancy there is significant room to grow the rental stream.
The accessibility of the property is further enhanced through 53 dedicated car parks, while there’s a host of amenities in walking distance. Multiple well-known Auckland landmarks such as the Sky Tower, Commercial Bay, and Auckland Art Gallery are nearby.
Colliers Directors Blair Peterken, David Burley, and Richard Kirke have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 22 June, unless sold prior.
The ground floor of the building spans 516sq m and the floorplates across the office floors are all approximately 442sq m. The floors are strategically shaped, allowing for each individual space to be split providing the future owner with the opportunity to house multiple occupants on the same level.
Peterken, Director of Capital Markets at Colliers, says there is considerable room for growth at the property.
“While there is a steady rental stream from the existing tenants, our estimates suggest that when fully tenanted at market rates the property should return in excess of $2 million per annum in rental income,” Peterken says.
“Given the gentrifying nature of Albert Street and the recent flight-to-quality trend for several existing CBD tenants such as Spark who will be moving to a nearby building that is currently under construction, the opportunity exists for an active developer to up-spec the subject property to achieve A-grade level rental rates.
“This is supported by the property’s prime corner position with limited chance of the views being built out and obscured in the future.”
Burley, Auckland Director of Investment Sales at Colliers, says the location is one of the premier destinations for office accommodation in the city.
“There are multiple high-profile occupants situated around Albert Street including Deloitte, ANZ, and AMP to name a few,” Burley says.
“With Queen Street a short walk away, current and future tenants at this eye-catching office tower will be able to make the most of everything the CBD has to offer.”
Kirke, International Sales Director of Capital Markets at Colliers, says purchasing opportunities such as this one will appeal to a wide array of buyers due to the compelling investment fundamentals.
“While the existing usage of the building is for office requirements, the zoning of the property does allow for conversion opportunities that could see it used for residential, retail, hospitality, education, and entertainment purposes,” Kirke says.
“The merit of acquiring this asset, at this stage of the property cycle, provides significant upside to investors.”
- Article supplied by Colliers
