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News Release

Auckland

Proposed apartment towers for dual frontage CBD site

A rare opportunity to secure a substantial CBD development site, with an attractive dual frontage to Nelson and Hobson Strrets and concept studies for two apartment towers, has come up for sale.


 

 

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Running the marketing campaign for the property fronting 217-223 Hobson Street/110-116 Nelson Street Auckland is John Binning, JLL's director of capital markets, who is offering the site for sale via Expressions of Interest closing Thursday 29th October 2015.

Binning says the asset on offer presents an excellent opportunity to capitalise on Auckland's strengthening market fundamentals.

"This property presents a rare and significant CBD site that is prime for development, at a time when Auckland's market fundamentals are strengthening. The site is of an attractive configuration and few redevelopment opportunities of this nature are available in the commercial heart of New Zealand. It will therefore generate a significant level of interest from investors/developers both on and off shore."

The property comprises of a 2,926sqm rectangular site with dual frontage to both Hobson and Nelson Streets and is located approximately 100 metres north of the intersections of Union and Pitt Street, and less than 500 metres from the SkyCity Convention Centre/new five star Hobson Street Hotel.

Concept studies drawn up for the site by Land Architects depict two apartment towers; the Nelson Street tower comprises 15-storeys made up of two basement levels, ground floor and 12 upper levels of apartments, the Hobson Street Tower comprises 14-storeys made up of two basement level, ground floor and 11 upper levels of apartments. Both towers, which total 29,666sqm will provide 254 residential apartments ranging between one and three bedrooms, 250 car parking spaces and ground floor retail space, fronting Nelson and Hobson Streets.

"Conditions today are prime for apartment development, hotel or mixed use, and this is demonstrated by a robust number of proposed projects currently in sell down or under construction having been triggered by better economic conditions. There is long-term stable demand for this product type due to the combination of a growing population, a rise in visitor arrivals to New Zealand, and the increasing acceptance of apartments as a viable accommodation option" adds Binning.

Binning continues, "Developers are at a post GFC high, especially those focusing on residential or mixed-use developments, given the demand emanating from commercial and residential occupiers."

The property is very well located, with a prime retail development street on one side, and strong pedestrian traffic flows on the other and incorporates both city and inner harbour views. It is also located within a notable residential intensification area and benefits from motorway access and excellent transport links.

Binning says, "Improvements to infrastructure such as the city rail link, will have a positive impact on the city's, and indeed the property's accessibility, a factor which major tenants and residents will be assessing when determining where to locate."

Whilst Binning believes the highest and best use of the site is for redevelopment (either apartment/hotel or mixed use), it is currently generating holding rental income from three formal lease agreements, each with a demolition clause, across 1,180sqm of net lettable area. The property also provides onsite car parking for approximately 53 vehicles.

Occupying the front component (western) of the site is 110-112 Nelson Street, a building that was constructed in the 1960s. The building comprises of 252sqm of reception/sales area, small workshop, storage and car parking and is currently leased to Snappy Car Rentals.

On the rear component of the property is 114-116 Nelson Street, 343sqm of lettable area that comprises of an assortment of light industrial and workshop buildings leased to P and K Automotive, a car servicing and mechanics company.  

Set back from the Hobson Street frontage is 217-223 Hobson Street, a 584sqm building constructed in the 1960s and leased to Best Souvenirs Limited. The building incorporates showroom office and warehouse components.

Binning says the value of the site will be significantly enhanced by the planned SkyCity Convention Centre which is located less than 500 metres north of the property and will allow the site to benefit from the valuable new sector of convention visitors and the economic stimulation that the convention centre will bring to the area.