Premium Parnell office property investment
A premium city fringe office property in tightly held Parnell is for sale for the first time in 22 years, offering investors multiple income streams from three commercial tenants and 39 secure car parks.
The four-level building at 7 Falcon Street is superbly located on a north-facing ridge with views overlooking Auckland Domain and the Parnell Train Station.
It returns $553,885 plus GST in net annual rent, with fixed annual increases of 3 per cent among the rental review mechanisms.
Colliers International Investment Sales brokers David Burley and Kris Ongley are marketing the property for sale in conjunction with Orange Realty Commercial broker Chris Urry.
Offers by way of deadline private treaty close at 4pm on Wednesday 19 June, unless it sells earlier.
Burley describes it as a highly desirable investment with long-term redevelopment potential.
“This fully leased property is well located in a popular pocket of Parnell, only a block from Parnell Road and five minutes from Auckland’s CBD.
“Built in the 1980s, it has been extensively refurbished to provide four premium levels of A-grade office accommodation.
“Long leases to established businesses make for an ideal passive investment, while Business Mixed Use zoning allows for future redevelopment of up to 27m in height.
“Whether you’re looking for a bottom-drawer investment or a long-term hold, this prime Parnell office asset is more than worthy of consideration.”
The property provides a net lettable area of 1,131sq m on a 620sq m freehold site.
Ongley says it is well located on the city-facing side of the Parnell ridgeline.
“The site benefits from dual frontages to Falcon Street and Cheshire Street, both of which run parallel to Parnell Road.
“The sloping rectangular site drops away from Falcon Street and has been excavated to provide two levels of secure basement car parking, accessed from Cheshire Street.
“Four levels of office accommodation surround a light-filled central courtyard. The high-quality interiors feature character elements including exposed ceiling services and wooden floors.
“The upper floors provide views across to the Domain, allowing for possible conversion to premium residential accommodation in the longer term.”
Holiday home rental management company Bachcare occupies the ground and second floors. It pays $306,451 in net annual rent, with annual rental increases fixed at 3 per cent.
The ground floor lease expires in August 2025, followed by three rights of renewal of three years each. The second floor is on a sublease until 2023, after which Bachcare has agreed to an initial two-year term to 2025, with rights of renewal to align with the ground floor lease thereafter.
Chartered accountants Kingstone & Associates occupy the first floor on a lease returning $156,534 in net annual rent, with the next market review in May 2020.
The lease expires in April 2021, followed by three rights of renewal of three years each.
Australasian pharmaceutical distribution company Aspen Pharmacare occupies the top floor on a lease returning $90,900 in net annul rent. Annual rent increases are fixed at 3 per cent.
The lease expires in June 2022, with a single right of renewal of three years.
Urry says the property is well located within one of Auckland’s trendiest and best-established suburbs.
“Parnell has a unique village atmosphere along with an appealing mix of residential, retail and commercial premises right on the doorstep of Auckland’s CBD.
“The property provides immediate access to transport links, with the Parnell Train Station, Link bus route and the motorway interchange all located nearby.”
“It is within walking distance of the Auckland Domain, University of Auckland, Auckland Hospital, the ASB Tennis Centre and the Spark Arena.
Get the latest commercial real estate insights and property news.