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Character mixed-use building in CBD offers tailored solutions for investors - Bayleys

Contributor:
Fuseworks Media
Fuseworks Media

A refurbished character building combining boutique retail tenancies with high-quality office space in the heart of Auckland’s CBD has been placed on the market for sale.

The three-storey standalone property for sale occupies a high-profile site at 22 Lorne Street, a block from the bustle of central Queen Street.

Two ground-floor retail spaces with frontage to busy Lorne Street are fully leased to a boutique clothing outlet and a leading bubble tea chain. These generate total net rental income of $71,949 plus outgoings and GST per annum.

Two levels available upstairs offer self-contained office spaces, with residential possibilities on the top floor - presenting a range of mixed-use options for investors, owner-occupiers and would-be inner-city residents.

Occupying the retail space at 22A Lorne Street is Origin Textile Limited, trading as the boutique clothing outlet, Forte. This retailer has been at this location for more than a decade and pays net rental of $35,950 plus GST per annum for its 40.5 square metre tenancy.

A new lease has started in a similar-sized retail space alongside, at 22B Lorne Street, after this was left vacant to facilitate building strengthening works. Fishpond 18 Limited, part of the Wucha Bubble Tea chain, has taken a five-year lease extending to 2025. It will pay a starting net rental of $36,000 plus GST per annum, with built-in three-percent annual increases. Wucha has nine stores in Auckland, along with stores in Hamilton and Queenstown.

The freehold land and building at 22 Lorne Street are now being marketed for sale by way of a tender closing on 3 December (if not sold prior) through Bayleys Auckland Central.

Salespeople Cameron Melhuish and Polly Markus said the approximately 268-square metre building sat on some 111 square metres of land on the eastern side of Lorne Street.

Originally constructed in the early 1900s, the property underwent a comprehensive refurbishment earlier this year. The structure has been strengthened and now has a seismic rating of 67 percent of new building standard.

"The two ground-floor retail spaces exude character, with brick features, solid floor tiles, floor-to-ceiling shop windows and a generous stud height," said Mr Melhuish.

"The 79-square metre first floor and 102-square metre second level are attractive, well-lit office spaces which feature exposed brick walls, polished wooden floors, high-stud ceilings, skylights and a high-quality fitout ready for occupation.

"Each of the upper levels is fully self-contained with its own bathroom and kitchen facilities. The penthouse level also has potential as an upmarket inner-city residential pad or live-and-work space," Mr Melhuish said.

The Lorne Street property is zoned Business - City Centre under Auckland Council’s unitary plan. Permitted activities under this zoning include commercial, retail and residential, with development allowable up to a maximum height of 16 metres.

Ms Markus said the location was a bustling hub of shops, cafes, restaurants, offices and apartments.

"Tucked one street back from Queen Street, Lorne Street is a hip focal point blending unique clothing boutiques and international cuisine, along with offices and apartments. It’s surrounded by a cluster of popular cultural spaces such as Auckland Art Gallery, the Gow Landsford Gallery, Tsujiri and the Kimchi Project," Ms Markus said.

"This Lorne Street strip brims with week-round city bustle, yet it is just a block away from the green haven of Albert Park."

Ms Markus said the property at 22 Lorne Street offered excellent profile to thousands of passing pedestrians each day, including office workers, students and a burgeoning contingent of inner-city apartment dwellers.

"The refurbishment of 246 Queen Street with a retail plaza through to Lorne Street will soon add further to foot traffic and vibrancy in this precinct," she said.

"Access to car parks is plentiful, with parking buildings within easy walking distance on Victoria Street and Kitchener Street. Access to the motorway network is close at hand via nearby Wellesley Street East.

"This site is also well served with public transport options, including numerous bus services. It’s a short walk from the transport hub at Britomart and just a few hundred metres from the new Aotea Station being developed as part of the City Rail Link," Ms Markus said.

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