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Nine-level CBD office tower with add-value upside

The property at 3 City Road on the corner of Symonds Street, is fully-leased, with the eight tenancies occupied by six established businesses including well-resourced tertiary education entities, a dental practice, a chartered accountancy firm and a legal training provider.

Zoned Business-City Centre, the contemporary 5,319sqm tower occupies 1,528sqm of land and there are 57 on-site car parks across two basement levels and some fully-secure car parking on level two.

The property returns annual net income of $1,500,189 plus GST with tenants on varying lease terms with renewals, and some inbuilt rental growth notably from anchor tenant, Yoobee College of Creative Innovation, which also has naming rights to the prominent building.

Built in the 1980s, the office tower is well presented, has been refurbished and is seismically assessed at 100 percent new building standard.

Ken Hu, Alan Haydock, and Damien Bullick of Bayleys Auckland Central are marketing the property via a tender campaign closing 4pm Tuesday 19th July, unless sold prior.

With New Zealand’s borders now open and a wall of investment capital looking for well-returning assets, Hu says 3 City Road has some strong credentials.

“It’s a quality hands-off CBD investment property which has a sound, proven leasing history and, along with rental upside, there’s also future residential conversion potential given the favourable zoning, good car parking and natural light”.

“Office assets have shown themselves to be remarkably resilient as an investment class throughout the pandemic and as global trends show, the return to the physical office is being embraced so we’d expect good quality office property to remain in high demand.

“Fully-leased properties that have been well-maintained and come with clear locational benefits – as 3 City Road does – have held their own.”

City Road links main arterial Symonds Street with Upper Queen Street and is well-positioned for accessing motorway networks and public transport.

The property is a short walk from the core CBD and Queen Street, and within easy walking distance of The University of Auckland and Auckland Hospital.

The office building itself is serviced by two elevators and there are separate bathrooms and kitchenettes on each floor.

The ground floor is accessed via the street level frontage of the property on City Road and is fully leased to two established tenants – Symonds Street Dentist and Marsden Robinson Chow chartered accounting firm.

Levels one, two, four and part of level five are occupied by Yoobee College of Creative Innovation, New Zealand’s largest category one private training establishment with seven campuses located around the country.

Levels six and seven are occupied by national private training establishment Kauri Academy, while the top floor is occupied by the College of Law, a school of professional practice for lawyers in Australia and New Zealand and the largest provider of practice-focused legal education in Australasia.

Haydock says the good spread of risk across tenants will appeal to a hands-off investor, while the value of the underlying land and its scope for redevelopment will resonate with those looking to the future.

“Undoubtedly, one of the strongest attributes of this property is its CBD location with Symonds Street ridge being a competitive precinct that offers arms’-length distance from the downtown office market where prices are traditionally higher and where access is not as streamlined,” he points out.

“But with a land area of more than 1,500sqm and generous floor plates, investors will also see the longer-term potential for such a well-located property given the demand for both affordable office and residential accommodation in the future.”

Click here for more information on the listing.

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