Long-held Hobson Street property ready to redevelop

4:23 PM Saturday November 2, 2019 True Commercial

141-143 Hobson Street is nestled in a tightly held mixed-use precinct on the western fringe of the CBD. Photo / Supplied

A large Hobson Street property is for sale for the first time in 53 years, offering a rare chance to invest or redevelop in one of Auckland CBD’s most dynamic and upcoming areas.
The 1,782sq m property at 141-143 Hobson Street is nestled in a tightly held mixed-use precinct on the western fringe of the CBD – an area that is undergoing significant rejuvenation and development.
It offers excellent access to motorways, public transport and amenities including eateries, hotels, SkyCity’s entertainment precinct and the eclectic City Works Depot hospitality and office complex.
Colliers International has been exclusively appointed to market 141-143 Hobson Street for sale by deadline private treaty closing at 4pm on Wednesday 20 November, unless it is sold earlier.
Tony Allsop, Investment Sales Director at Colliers, says the property is offered to the market with vacant possession, affording multiple options.
“There is also potential to lease back the property to the vendor with flexible terms. This would provide holding income while ensuring the site is ready to be unlocked for development when the time is right.
“This is a very rare opportunity to acquire a freehold CBD property in a superb location with favourable zoning and abundant redevelopment potential.
“A new owner could refurbish, reconfigure and add value to the existing structure, maximising potential rental returns.
“There is also scope to redevelop the buildings for an alternative use, which would make the most of the zoning potential.
“In the longer term, a new owner could transform the entire site by demolishing the existing improvements to best utilise the zoning’s 50m height limit.
“Whatever the preferred option, this property’s flexibility, location and long-term potential truly make it a standout CBD investment or redevelopment opportunity.”
Matt Plowman of Colliers’ Investment Sales team says the property set amongst high-rise apartments, hotels and offices.
“Hobson Street is a high-exposure arterial route that offers direct access to the motorway network, with the State Highway 1 and 16 interchanges located only some 400m away.
“The Aotea Station, part of the City Rail Link currently under construction, will be less than a five-minute walk away.”
The property provides excellent exposure, with 30m of frontage to Hobson Street. It has 18 car parks including customer parking spaces along the frontage – a rarity in the area.
Plowman says two buildings of 1,565sq m in total sparsely cover the site, each positioned on a separate freehold title with Business City Centre zoning.
“The original building at 141 Hobson Street is split across three levels, with the ground floor facing Hobson Street currently occupied by a retail showroom.
“The first floor and basement levels consist of offices, workrooms, storage areas and a loading bay.
“The second building at 143 Hobson Street was built around 2001. It is a single-level, pre-cast concrete structure with a ground floor retail showroom as well as a sizeable undercroft storage area accessible from the rear of the property.”
Allsop says there is a huge amount of activity in the surrounding area, supported by infrastructure investment by Auckland Council.
“Auckland’s western CBD fringe is undergoing significant urban renewal, development and growth.
“The success of the nearby Victoria and Wynyard Quarters demonstrates the demand for quality developments outside of the traditional CBD.”
One successful recent development in the area is the City Works Depot – a cluster of trendy boutiques, cafes and creative businesses in a revitalised former council workshop.
There is likely to be further renewal in the immediate area now that police have vacated the nine-storey, 4,500sq m Auckland Central Police Station, which will be repurposed for another use.
Another key development on Hobson Street itself is the new nine-level Auckland City Mission HomeGround building, which is currently under construction.
Designed by award-winning architects Stevens Lawson, the 12,500sq m health and social services hub will have a proposed main entry on Federal Street. Completion is due in 2020.
Further north on Hobson Street, the $703 million NZICC and Horizon Hotel development will make the property for sale appealing as a future hotel redevelopment site.
The 32,000sq m NZICC will be able to host international conventions for 3,000 people and one-off events for 4,000 people. It is expected to attract some 33,000 international delegates a year to Auckland.
The Horizon Hotel is a new 5-star, 300-room hotel that will be integrated with the wider SkyCity precinct including the NZICC and a pedestrian laneway with retail and food and beverage offerings.