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Auckland

Historic character building in CBD hits the market

A fully occupied four level refurbished character building in a convenient Auckland central business district location has come to the market.


 

 

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Multiple tenancies offer investors a strong rental income and weighted average lease term. 

John Binning, JLL’s Director of Capital Markets is marketing the property for sale via an expressions of interest campaign closing 4pm Wednesday 9th December 2015. The building is located at 26 Lorne Street Auckland, comprises four above ground levels, one basement level and a strong weighted average lease term of circa 5 years.

“The historic building is estimated to have been constructed in 1925 and underwent an extensive refurbishment process in 2008, now incorporating readily lettable retail and office components,” says Binning. 

Binning adds, “There is also long-term redevelopment potential on the site, which means the future possibility of a high-rise building and a range of activities are permitted that include accommodation, food and beverage, education, industry, retail, offices and services.”

There are six tenancies incorporated within the building with varying lease terms and inbuilt rental growth. The basement level is fitted out as a nightclub/bar, provides 192sqm and is leased to Richbaby Bar and Entertainment.  Situated on the ground floor is an entrance foyer which is accessible off Lorne Street and provides access to the upper levels and basement. Occupying the 228sqm ground floor is art gallery tenant, Gow Langsford Gallery. 

There are three levels above providing high quality character office accommodation; level one which is 266sqm is split into two tenancies leased to Network Communications and art hire and consultancy, Artt Limited. Level two provides 292sqm and is occupied by Auckland's city centre business association, Heart of the City and level three is 294sqm and is leased to criminal defence barristers, Lorne Chambers. The 1,273sqm of net lettable area in total generates a net rental income of $446,273 per annum.

“The building provides an opportunity for space flexibility and creativity, which appeals to tenants with alternative workplace strategies. There is a high demand for this type of character asset in Auckland’s CBD and a significant proportion of the CBD’s office space is also situated within this precinct.  Lorne Street is formed around the Queen Street corridor which has a strong emphasis on retail activities and is fast becoming an increasingly fashionable retailing scene.”

The building occupies a commercial site of 359sqm which is zoned Strategic Management Area 1 under the Auckland City Council District Plan. The objective of this zone is to maintain the highest intensity of activity in the central area, emphasising commercial, entertainment, recreational, cultural, retail, residential and tourist activities. The aim of the precinct is to encourage activities which will enhance the vitality and interest of the precinct whilst still retaining the heritage nature and character of the precinct.

Binning says “With character buildings in high demand, landlords are being rewarded for the capital spent on the scope of work as there has been a strong attraction from quality tenants.”

There is an abundance of public car parking within a short walk of the site including the Victoria Street car parking building, along with the Kitchener Car Park on nearby Kitchener Street. Access to the motorway is close at hand via Wellesley Street East or Grafton Road and Queen Street is just a short walk away.

The property lies on the eastern side of Lorne Street and to the north of Khartoum Place. Surrounding development is mixed in nature and includes similar lower to mid-rise commercial office buildings, residential apartment conversions and modern high rise buildings, in addition to the Auckland Art Gallery and Albert Park.​​