Invest or redevelop in ‘dynamic Hobson St’

2:49 PM Friday September 14, 2018 True Commercial

The five-level building at 150 Hobson St has retail space at ground level and offices above. Photo / Supplied

A five-level, freehold commercial property on Auckland’s Hobson St is being marketed as a chance to invest or redevelop in one of the CBD’s most dynamic, upcoming areas.

Only two city blocks from Queen St, 150 Hobson St is in a growing hub of development between Auckland’s civic centre and the Victoria Quarter.

It comprises a 2935sq m commercial building on a 675q m landholding, with retail on the ground floor and offices on the four floors above.

Colliers International directors Blair Peterken, Jason Seymour and Tony Allsop are marketing the property for sale by deadline private treaty. Offers close at 4pm on October 10, unless it sells earlier.

Peterken sees an opportunity to invest or develop on the dynamic western frame of Auckland’s CBD.

“The property isin easy walking distance of some of Auckland’s most vital new developments,” he says.

“Only 150m down the street is the site of the New Zealand International Convention Centre and the five-star, 300-room Hobson St Hotel. Due for completion next year, the development will be fully integrated into the SkyCity entertainment complex and will include a new retail and hospitality laneway precinct. Aotea Station, planned to be the busiest City Rail Link station upon completion in 2024, will also be nearby. These developments will further revitalise the western side of Auckland’s CBD, which has already seen unprecedented development.”

Peterken says the property is fully leased by two tenants, earning $768,540 in net annual rent.

“The leases provide land-bankers and developers with a split-risk source of holding income, while a ‘Landlord Termination Clause’ in the main lease allows the purchaser the ability to gain earlier access for redevelopment if they wish.”

Seymour says the property is zoned Business City Centre, making it suitable for a range of future uses.

“This zoning allows for the greatest intensity of development under the Auckland Unitary Plan. Permitted uses include residential, office, retail and accommodation.”

Allsop says Hobson St is a major arterial route through the CBD that has excellent transport links.

“The Hobson St motorway interchange is only 400m from the site and public transport is readily available.

The building was constructed in 1964 but has been subsequently altered and refurbished. It is a concrete column and beam structure, with concrete foundations and floors. Walls are a mix of concrete block and brick infill, with a glass curtain to the front elevation.

The 139sq m ground floor is leased to a convenience retailer until April next year, with no rights of renewal. The lease earns $69,540 in net annual rent.

The office levels have a net lettable area of 2796sq m. Access is via a main lobby on the ground floor, served by one lift.

The offices are occupied by an educational tenant, the Cornell Institute of Business and Technology, on a five-year lease from settlement. The lease will earn $699,000 in net annual rent, with 3 per cent fixed annual rent increases.

Hobson St is due to get a facelift with the development of the nine-level Mission HomeGround building.