A standalone freehold two-level character building, plus carparks in a separate unit-titled apartment block have come to the market in Parnell as a complete package, providing investors and owner-occupiers with the chance to secure a foothold in one of Auckland’s preferred inner-city suburbs.

Occupying a circa-864sqm site, the fully-leased property at 7 Windsor Street adjoins two Parnell heritage landmarks – the former Windsor Castle Hotel at the corner of Parnell Road and Windsor Street, and the former Heards confectionary factory fronting Parnell Road.

It provides around 758sqm of lettable retail and office space on the ground floor including a circa-45sqm loading dock, and 587sqm of office accommodation on the upper level. The building was completely modernised and upgraded in 2014, including strengthening to give a 75 percent seismic rating.

There is a range of quality occupiers on varying lease terms across this building including Levi Strauss, Blackbird Finance, Vaniye Patisserie, and Reidy and Co. Several of the office occupiers have been in the building for more than 10 years, and the leases have regular rental reviews and built-in rental increases providing future upside.

Being sold in conjunction with this Windsor Street property are 31 secure, undercover car parks and two storage units with roller door access at 1/1 Ruskin Street. These car parks are in the basement level of the Heard Park Apartments building and are leased to a range of occupiers including some office tenants from the Windsor Street building, with the balance to external commercial tenants.

The combined annual net income across the two properties is in excess of $630,000 plus GST and outgoings.

Mike Adams and Ben Wallace of Bayleys Auckland Central are handling the sale of 7 Windsor Street and 1/1 Ruskin Street, Parnell with tenders closing Wednesday 6th August, unless sold prior.

The large scale tenanted commercial investment opportunity provides buyers with a split-risk opportunity less than 50m from Parnell Road and within a 10-minute walk of the Parnell Train Station, says Adams.

“This is the first time these properties have come to the market in this combination, and they have been in long-term ownership. The carparking component provides tangible value to the offering and reflects the vision of the current owner who saw an opportunity to clip-on parking which is in high demand in the suburb.

“Parnell remains one of Auckland’s most aspirational suburbs and one that has held its value across market cycles. Ownership of Parnell commercial property tends to be generational and stock that does come up for sale – particularly if it is freehold and standalone – traditionally attracts high levels of attention.

“This offering has well-structured lease terms and there is inherent flexibility within the existing leases so an owner-occupier could potentially see value in acquiring the building and car parks to make it work for their own business, while receiving income on the balance.”

Windsor Street is largely residential with a streetscape featuring many 19th century cottages that honour Auckland’s early settlement. It is a short walk to dining, shopping and public transport connections at Parnell Rise, close to the Auckland Domain and the CBD, and conveniently positioned for motorway and arterial access.

The Business-Town Centre zoning of the subject properties allows for a broad range of commercial, residential, tourist, cultural and community activities, and provides future options for a new owner.