Eden Terrace property with star quality
The recognisable office warehouse building where the TV programme The Project is produced live every weekday has been put up for auction, presenting a chance to secure a premium city fringe investment with unique tenant covenant.
The property at 71 Boston Road, Eden Terrace, is superbly positioned within a tightly held pocket of mixed-use development that is poised to benefit from the completion of Auckland’s City Rail Link in 2024.
Its improvements have previously been utilised as an office warehouse and can be easily adapted or converted to future uses accordingly.
The property is only 250m from the Mt Eden train station, which will become one of the CRL’s major transport hubs, and mere minutes from the CBD and motorway links.
Colliers International city fringe specialists Jonathan Lynch, Hamish Paterson and Kris Ongley are marketing the property for sale by auction.
It will go under the hammer at 2pm on Wednesday 11 September, unless sold prior.
Lynch says it is a chance to acquire a property with real star quality.
“Every weekday, The Project is produced live at the property and beamed into thousands of Kiwi homes during the 7pm primetime TV slot.
“The popular show – hosted by Jesse Mulligan, Kanoa Lloyd and Jeremy Corbett – is known for its engaging mix of current affairs and entertainment, often with an irreverent and humorous twist.
“It is broadcast online and on Three, which is the flagship MediaWorks television channel.
“The upcoming auction of 71 Boston Road is your chance to secure a premium investment property backed by this unique tenant covenant.
“The property is underpinned by favourable Business Mixed Use zoning and a superb growth location, lending it to future redevelopment.
“Whether you’re looking for a tenanted investment or a land bank opportunity with excellent holding income, this is the project for you.”
The 866sq m building is situated on a 799sq m site with six car parks. Tenant MediaWorks TV Limited is on a two-year lease returning $196,000 plus GST in net annual rent.
Paterson says the site is essentially rectangular, with about 14m of frontage to Boston Road, rising in contour towards the rear boundary.
“The front of the building is a two-level office, set behind a sealed parking area, while the rear is a medium stud warehouse. Both have been seismically strengthened to 80 per cent NBS with a detailed seismic assessment available for interested purchasers.
“Constructed in the 1960s, the property has received substantial financial investment by both the vendor and the tenant.
“It was originally built as a studio and office for Vidcom and is now fully consented for live audience TV shows.”
Paterson says the MediaWorks lease expires in November 2020, presenting a multitude of options.
“A new owner could renegotiate a lease with MediaWorks, taking advantage of the existing consented use and significant tenant goodwill.
“Alternatively, an owner could occupy themselves or find a new tenant for the office and warehouse spaces, which would easily be adaptable to other uses in the future.
“Either option presents a good opportunity for rental uplift, given rising land prices across Eden Terrace as CRL work progresses.”
Ongley says there is excellent redevelopment potential in the longer term.
“The site’s zoning allows for development of up to 21m with a range of uses, including commercial, residential, retail or a mix of these.
“There has been particularly strong demand for new terrace housing and apartments in the area, given the proximity to the Mt Eden train station.”
Recent developments in the area have been of a high quality, as typified by the recently completed Botanica, Botanica Heritage and Miro apartments.
A number of new offices, cafes and bars have also opened nearby in recent years.
Ongley says the property is located on the popular arterial route of Boston Road, which connects Mt Eden Road and Normanby Road to the west and Khyber Pass Road to the east.
“It is five minutes’ drive to Auckland’s CBD and is conveniently located a short distance to both the Southern and Northwestern motorways.
“The property is also a brisk walk to the train station and within minutes of vibrant cafe and bar offerings.
“Hospitality businesses in the area include two renowned bars – the Horse and Trap and Galbraith’s Alehouse – alongside newer offerings such as the Brothers Beer Juke Joint and the Good Home pub.”
The property provides 430sq m of office space and 435.5sq m of industrial space.
The front of the building features a ground floor office and showroom of 200sq m and a first-floor office of 231sq m.
The offices are adjacent to a 116.5sq m covered loading area, which leads to a 278.7sq m warehouse with a 40.3sq m mezzanine.
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