Marketed by Warren Hutt and Jonathan Ogg of CBRE, the freehold property known as the Public Trust building is being offered to the market by way of Deadline Private Treaty closing on Thursday 14 June 2018 at 4pm, unless sold prior.
Warren Hutt says that the property occupies arguably one of the most high profile corner sites in Auckland’s southern corridor.
“The quality of the property, its location and its underlying land value mean that it will appeal to a wide audience. Because assets like the Public Trust Building are seldom offered to the market for sale, it is a tremendous opportunity to secure an extremely well presented investment with rental upside and potential redevelopment.
“We expect traditional office investors and owner occupiers, as well as those considering alternative uses such as apartments, medical or hotel conversion - even car dealerships.”
Originally built in 1985 as a two-level car sales showroom and workshop occupying a large 3,294sqm site, the property underwent significant refurbishment in 2002 that included two new office floors.
Today it comprises a four-level offering with ground floor retail, first floor car parking and two levels of office accommodation offering large, efficient circa.1,595sqm office floor plates.
The high land value of the large site, combined with its mixed use zoning, offers future redevelopment options, says Jonathan Ogg. “The property offers the potential for a change of use, for residential, medical or hotel conversion – all of which are real options to add value in this market, particularly as the property is within the double Grammar Zone.
Ogg adds: “The large floor plates combined with high car parking ratio and high profile location are also a real attraction to suburban office tenants when they are looking for new premises, as they enable improved efficiencies and cost reductions.”
Net passing income of $1,242,719 is generated by major tenants that include Public Trust, Housing New Zealand and Skellerup, in all providing a Weighted Average Lease Term of approximately 2 years.
“The building has high quality corporate and Government tenant covenants,” says Ogg. “Further, 205 Great South Road provides an attractive rental growth scenario, due to its low average office rent at the moment. This means there is potential upside in office, retail and car parking.”
With 120 on-site car parks, 205 Great South Road has a car parking ratio of 1:33, making it further desirable for suburban office occupiers.
The Public Trust Building is located on the high-profile northwestern intersection of Great South Road and Green Lane West, with approximately 50m frontage to each.
A short commute to the affluent suburbs of Newmarket, Remuera and Epsom, and close to both the Southern and Northern motorways and the Greenlane train station, the property offers easy access to Cornwall Park, One Tree Hill Domain, ASB Showgrounds, Ellerslie Racecourse, Countdown and many nearby retail offerings.
Hutt describes it as “an outstanding location, one of the highest profile corner sites in Auckland. 15,000-28,000 cars pass it every day, and it is across the road from the medical mile with Ascot Hospital close by, as is the Novotel and Ibis Hotels.
Hutt adds that the location, often referred to as the Greenlane Corridor, is well recognised as a popular suburban office precinct.
CBRE’s recently-released Capital Markets Reviewresearch shows that commercial property transaction volumes in 2017 topped $4 billion for the fourth year in a row.
Total transaction volumes over 2014 to 2017 equated to $18.4 billion, surpassing aggregate sales activity for the previous eight years. Office buildings made up close to half of the 2018 transactions, with the balance being shared between retail, land, industrial and special purpose assets.
Ogg says there is a high likelihood that the level of activity flowing on into 2018 too. “A recent CBRE Asia Pacific investor intentions survey shows that 92% of respondents indicating their investment activity this year will be the same or greater compared to 2017, with a broadening away from the traditional preferred markets of Shanghai, Sydney and Tokyo.
“This means that investors are increasingly considering core plus/value-added assets, such as 205 Great South road. With high underlying land value and strong potential for rental growth or redevelopment, we see strong opportunities for local investors at 205 Great South Road. Well located properties with good fundamentals, which this property has, are at the top of the list for investors right now.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com..