Two adjoining landmark properties with massive future development potential located in the heart of the Auckland CBD, within metres of the Sky Tower and adjacent to New Zealand’s forthcoming busiest train station, is available to purchase individually or collectively for the first time in 45 years.
While the two properties hold the prestigious addresses of 51-63 and 67-71 Victoria Street West, the landmark buildings are likely to be more well-known by their stable of retailers including the Mexican Café, The Fiddler Irish Bar, Hell Pizza and the former Mai Thai restaurant, which was one of Auckland’s oldest Thai restaurants.
Speaking on behalf of City Construction Limited that owns the property, Kevin Harvey notes that while reluctant to sell the unique property, the timing is right.
“We are acutely aware of the growth potential of the property and are reluctant to sell, but I am looking to balance my workload more. It is also the right time to restructure the portfolio a little to assist the younger generation of Harveys.
“I am also looking forward to putting more energy into our Parnell properties that we own which will enable me to liberate some more of my creative passion.
“I’d also like to acknowledge my father, the late Les Harvey, who had so many stories about Victoria Street where he would visit the people that ran businesses from there, who would amongst other things, grow tomatoes and beans on the rooftops.
“Gratitude for the tenants should not be overlooked, some who have been in occupation with us for 20-30 years,” says Harvey.
Colliers’ CBD sales specialist Tony Allsop, who is marketing the property for sale alongside colleague Matt Plowman, notes that 51-63 and 67-71 Victoria Street West deliver an exceptional buying opportunity.
“There is strong demand for high-profile CBD properties of this calibre with holding income and development potential highly sought-after attributes, but so scarce.
“The scarcity factor alone will generate significant interest from a wide range of passive and add-value buyers.
“Although the two properties that sit upon five separate titles are available to be purchased collectively, offers can be made individually for the two properties. This opens up the buyer market and provides an immense opportunity for prospective purchasers looking to get their own slice of prime CBD property,” says Allsop.
The premises at 51-63 Victoria Street West provides approximately 823 sqm of space across two levels and sits on 534 sqm of land across two titles. The tenancies provide approximately $389,025 of income plus operating expenses and GST.
Potential to significantly increase the rent roll is also afforded to the new owner by leasing the some 412 sqm tenancy recently vacated by Mai Thai restaurant.
The property at 67-71 Victoria Street which encompasses approximately 510 sqm of floor area across three fully tenanted, two storey buildings on three separate titles on 326 sqm of land generates approximately $310,000 of income plus operating expenses and GST.
Allsop says, “Alongside the longstanding tenants and further upside available through additional leasing opportunities, it is the massive development potential afforded by the ‘Special Height Area’ zoning that is a major drawcard.”
Zoned as Business – City Centre Zone in the Auckland Unitary Plan and located within the ‘Special Height Area’ with a MTFAR of 13:1, the properties provide a buyer with incredible scope for future development.
“Only the sky’s the limit for this future development,” says Allsop.
“Discerning buyers will understand the true opportunity here to simply sit-back and enjoy the income and land bank for future value gains, add-value through a new leasing programme or undertake a complete redevelopment when the time is right in a high growth zone of the CBD,” says Allsop.
Matt Plowman, notes that the current holding income and future development upside available are a special mix of factors that will unreservedly attract buyers, but it is all underpinned by the properties’ location.
“Collectively the premises comprise an exceptionally high-profile corner site with a massive street frontage spanning some 50 metres along Victoria Street West and approximately 16 metres along Albert Street.
“A high concentration of amenity and proximity to motorways and public transport make this locality attractive to commercial, residential and hotel uses.
“The City Rail Link’s (CRL) Aotea Station that is currently under construction is predicted to be the busiest train station in the country and is just metres away, further improving the accessibility of the properties and the wider mid-town area for customers and workers.
“The influx of people from the CRL will be a major boon for the area upon opening, driving future capital growth.
“The Sky Tower, which is almost directly opposite the premises, is another drawcard given the hundreds of thousands of people each year that frequent the national landmark since it’s completion in 1997.
“With almost half a century since this last became available to purchase, we advise all prospective purchasers undertake the necessary due diligence without delay to avoid disappointment and any regrets,” says Plowman.
The properties are for sale by Deadline Private Treaty closing at 4pm Wednesday 9th June, unless sold prior.