Who said that residential is the only way to make make money?
Development site price jumps 80%, Queen St building sold
Monday 23 June 2014
The price of an Auckland cbd development site has risen by nearly 80% in 4 years. The property at 51-53 Albert St, backing on to St Patrick’s Square, was earmarked for a 46-story apartment tower under a resource consent obtained in 2009. It was sold at auction for $3.66 million in 2010 and resold this month for $6.5 million, with development consent in place.
Sales in Bayleys’ latest report include that & another for more than $5 million, and 2 more for undisclosed sums likely to be well in excess of $5 million.
Blackett’s Building on Queen St (in photo above) was one of those sold for an undisclosed sum but, as its rental figure exceeds $600,000, the sale price was likely to be above $5 million.
A building at the Symonds St end of Karangahape Rd, occupied by education providers, was also likely to have a sale price well over $5 million, given its $1 million-plus rent roll.
One property with a declared sale price of $5.7 million was the former motel site just off the Greenlane motorway interchange, on the corner of Greenlane East & Ohinerau St, sold with vacant possession for redevelopment.
86-92 Queen St, corner Shortland St:
Features: Blackett’s Building, 734m² fully leased, built in late 1870s as South British Insurance Co’s head office and one of Queen St’s longest-surviving buildings, with Historic Places Trust category 1 classification; on 205m² corner site, retail on the ground floor & 4 levels of office space above
Rent: $612,083/year net + gst, about 80% of that from 328m² of retail space occupied by Florsheim Shoes, souvenir shop & cashmere garment store
Outcome: sold for undisclosed sum
51-53 Albert St:
Features: 645m² site on St Patrick’s Square with resource consent & plans for a 46-level residential tower comprising 154 apartments
Rent: holding income of $114,887 from lease of 3-storey existing building to Wilsons Parking, with 12-month demolition clause
Outcome: sold for $6.5 million at $10,078/m²
75 Karangahape Rd:
Features: 5684m² building on 1540m² site at the corner of Liverpool St, fully leased to 3 education providers & Gloria Jean’s Coffees; anchor tenant Taylors College, provider of university preparation programmes, has naming rights; parking area at rear has 59 secure spaces
Rent: $1,098,230/year net + gst
Outcome: sold for undisclosed sum around $5M plus
5-7 Arawa St:
Features: Modern 663m2 standalone office & warehouse building on 658m2 site alongside motorway, 14 parking spaces
Rent: $76,274/year + gst from 2 tenancies, including 10x6m illuminated wall sign
Outcome: sold for $2.5 million, with 510m2 of vacant space to beoccupied by the purchaser
95 Ascot Avenue, unit 3D:
Features: 620m2 penthouse office floor in Ascot Business Park, 18 parking spaces, leased for 8 years from January 2014 with no right of renewal
Rent: $236,914/year + gst
Outcome: sold for $2.785 million at an 8.5% yield
Agents: Scott Kirk & James Were
93-97 Greenlane East & 55 Oninerau St:
Features: 3107m2 freehold corner motel site in 2 residential 6A-zoned titles, opposite Ascot Hospital, existing buildings include a 27-unit motel complex with conference facilities, restaurant & bar with 32 parking spaces, plus standalone cottage
Outcome: sold with vacant possession for redevelopment for $5.7 million at a land value of $1834/m2
38 Monmouth St:
Features: 741m2 office building on 587m2 site, 3 tenancies
Outcome: sold for $1.64 million to a purchaser intending to occupy a vacating tenancy
29 Scanlan St, unit 64:
Features: 41m2 office
Outcome: sold vacant for $240,000
Attribution: Agency release.