An entire office tower next to the upcoming Te Waihorotiu CRL Station in Auckland CBD has been put up for sale, offering a large-scale investment with further opportunity to add value.
The freehold 18-level tower at 99 Albert Street, previously known as the AA building, is poised for income uplift as the city’s Midtown regeneration charges ahead.
CBRE senior director of capital markets John Holmes, who is marketing the building for sale by expressions of interest closing on Wednesday 1 April, said much of the refurbishment work has already been completed, presenting an immediate opportunity for the new owner to present high-quality office space to the occupier market.
The tower sits on a prominent corner beside the station entrance. It provides 14,387sq m of net lettable area on a 2364sq m site and has an A grade seismic rating.
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Brent McGregor, CBRE executive chairman, said the combination of scale, generous car parking and proximity to the CRL station will appeal to a wide tenant pool, particularly as Midtown’s amenity value and public transport connections improve.
“This location is primed to benefit from significant investment flowing into Midtown, including the CRL, the New Zealand International Convention Centre and other recently completed hotel and commercial projects. This building sits right at the centre of the precinct where this uplift is being felt.”
Eleven of the building’s 14 office floors, which have large 950sq m floorplates, have undergone high-quality refurbishment and are ready for tenant fit-out. The remaining floors leave further upside available through targeted capital spend to achieve rental uplift.
Holmes said many buyers are more confident investing in assets where they can see a practical, near-term pathway to improve cashflow, rather than taking on open-ended redevelopment risk.
“The current owner has invested significantly in the building, which means the buyer can focus on leasing and targeted upgrades to lift income.”
The main entrance foyer off Albert St has been refurbished to a high standard and five new lifts service the building. Services including HVAC systems and fibre connectivity have also been upgraded, positioning the building as an attractive, future-focused workplace.
New end-of-trip facilities have also been installed, including showers, bike storage, an e-scooter charging station and electric vehicle chargers.
For vehicle-based commuters, the building includes 109 on-site car parks, which equates to an unusually generous parking ratio of about one park per 132sq m, McGregor said.
“The high car parking provision gives the building a clear competitive advantage in a market where on-site parking is increasingly scarce. This greatly increases tenant amenity value, alongside the high-quality end-of-trip facilities and proximity to rail.”
The location is set to benefit from public investment into the streetscape along Albert and Victoria streets, which is scheduled for completion to coincide with the opening of the City Rail Link later this year.
The asset also offers the new owner an opportunity to further add to local streetscape improvements by activating the Little Fed Laneway side of the building, enhancing its attractiveness to tenants and passing pedestrians.
Holmes said the improved street-level amenity and wider precinct uplift will be viewed as a strong positive by potential tenants.
“There’s a lot happening in this part of the CBD and timing is everything. The future upside is clear - the CRL and the convention centre are both game-changing infrastructure projects for this part of the CBD and 99 Albert stands to be a major beneficiary.”
- Supplied by CBRE
