Office building in city’s legal quarter

9:34 PM Friday July 19, 2019 True Commercial

2 Princes Street currently returns approximately $670,202 in net annual rent. Photo / Supplied

An office building on Princes St is for sale, offering investors an opportunity to acquire a high-profile Auckland property with add-value potential.

The multi-level building, at 2 Princes St, is located on the corner of Eden Cres and Shortland St, in the heart of Auckland’s legal precinct.

Known as Princes Court, it has 21 tenants including several legal chambers, an accountancy firm, an architectural practice, a research company and a number of trusts.

The basement is tenanted by a boxing gym, while 29 car parks provide additional rental income.

David Burley, of Colliers International, who is marketing the property with colleagues Adam White and Gareth Fraser, says: “Auckland CBD’s office vacancy rate remains stubbornly low, pushing up rents. 

“This presents an opportunity for a buyer to immediately add value through structured rental increases.

“With several rental reviews and renewals due soon, there is plenty of scope for uplift in the short term.

“Looking to the future, the Business City Centre-zoned property lends itself brilliantly for repositioning. 

“Commercial or residential conversion is a possibility, taking advantage of the favourable zoning and holding income.

“The property’s superb location ensures it is a solid long-term investment, no matter which option you pursue.

“Freehold properties in Auckland’s CBD are very tightly held and rarely come to the market, making this an opportunity that astute investors will not want to overlook.”

Princes Court is for sale  by way of deadline private treaty, with offers closing at 4pm on Thursday, August 15, unless it sells earlier.

The property is situated on  about  a 1121sq m freehold  site.  Built  in 1967, it comprises a four-level commercial building plus a basement with a net lettable area of approximately 2804sq m.

The building is split into 23 tenancies, including the basement gym and a single office vacancy of 57sq m. 

Princes Court  returns around  $670,202 in net annual rent, made up of $560,850 from commercial leases and $109,352 from the 29  car parks.

White says the building presents very well for its age, both inside and out.

“Princes Court has an essentially square footprint with floor plates of some 650sq m each. 

“It is constructed of reinforced concrete foundations and flooring with concrete spandrels and glazing.

“Inside, the office spaces are predominantly plasterboard lined, with acoustic ceiling tiles and recessed fluorescent lighting. 

“Accommodation generally includes kitchen facilities, common male and female amenities on each floor, carpet floor coverings and some fixed partitioning.

“Building services include air conditioning, heat detectors and two passenger lifts.”

Fraser says Auckland offers excellent investment fundamentals, with central city real estate such as Princes Court being especially sought after.

“Princes Court is as central as it gets. It is within walking distance of absolutely everything the city has to offer.

“It is just down the road from The International, a premium new apartment development under construction at 9 Princes St.

“Princes Court is also less than a minute from The Northern Club, Pullman Auckland, and the University of Auckland.

“Nearby Shortland St is Auckland’s traditional legal hub, being located close to the High Court at Auckland on nearby Waterloo Quadrant.

“The surrounding area has seen significant commercial, retail and residential development in recent years.

“It is very well connected with nearby transport options, including City Link bus routes, the train station at Britomart, and easy access to motorways in all directions.

“You’d be hard-pressed to find a better location than this.”

- Material supplied by Colliers International