Well-located Auckland CBD site with potential

2:31 PM Monday July 25, 2016 True Commercial

The five-storey office and residential building at 4 Hobson St.

A mixed-use Auckland CBD property at the northern end of Hobson St is up for sale offering an add-value or future development opportunity.

The under-utilised 455sq m freehold site at 4 Hobson St is close to the waterfront.

The five-storey office and residential building located on it are up for sale by international tender closing August 15, unless sold prior by private treaty. Featured in Bayleys’ latest Total Property portfolio, the offering is being marketed by Quinn Ngo, James Chan and Matt Lee of Bayleys’ International Division.

“The property offers significant development potential in a very strong location just off Fanshawe St and within a short walk of the Viaduct, lower Queen St and the Britomart precinct,” says Ngo.

“There is also an opportunity to add immediate value to the premises by looking at options to lease up the two levels of office space which are mostly vacant at present and significantly increase the rental income.”

Originally constructed in the 1940s, the building provided three levels of warehouse and office space until the late 1990s, when the two-level residential penthouse apartment was added on top.

The ground floor entrance to the building is via a small lobby with a four-person lift and an adjoining stairwell servicing the upper levels. Car parking for eight vehicles is accessed by a roller door up a short ramp and there is also basic storage accommodation located to the rear of the ground floor. Above this are two levels of office space with the first level comprising recently refurbished open plan space plus two separate offices or meeting rooms, a central kitchenette and male and female toilets and a separate shower.

The other office level has a similar configuration with a central open plan office area with various partitioned offices and a kitchenette with an adjoining shower. The 765sq m of office space is mostly vacant apart from a two year-lease on 107sq m.

The upper two levels comprise a 205sq m four bedroom penthouse apartment plus 103sq m of balconies. It is currently producing gross rental income of $52,000 a year. The apartment provides CBD views plus a peek of the Waitemata Harbour to the northwest.

The property provides annual holding income of about $82,000.

The rectangular site has approximately 14 metres of frontage on to Hobson St near the intersection with Wolfe St and is across the road from Hotel Grand Chancellor on Fanshawe St.

“Neighbouring properties include a mixture of mostly taller commercial and residential premises and there would be an opportunity to explore the possibility of further commercial and/or residential development of this site by increasing the height and size of the building,” says Chan

He says the property is well positioned at the sought after waterfront end of the CBD, close to Queen St and approximately equidistant from two major new developments which are underway: SkyCity’s $700 million International Convention Centre plus an adjoining 5-star, 300-room hotel and Precinct Properties’ $680 million Commercial Bay development of the former Downtown Shopping Centre site.

This will include a new 39-level commercial office tower and a laneway style retail centre with around 100 shops plus a number of restaurants, cafes and bars.

“The superior location of the site also offers convenient access to a range of transport options, including motorway access in multiple directions and all public transport systems including bus, ferry and train services,” says Chan.