Premium city fringe investment with unique tenant covenant at 71 Boston Road in Auckland

Premium city fringe investment with unique tenant covenant at 71 Boston Road in Auckland 1536x1040

Eden Terrace property with star quality

The recognisable office warehouse building where the TV programme The Project is produced live every weekday has been put up for auction, presenting a chance to secure a premium city fringe investment with unique tenant covenant.

The property at 71 Boston Road, Eden Terrace, is superbly positioned within a tightly held pocket of mixed-use development that is poised to benefit from the completion of Auckland’s City Rail Link in 2024.

Its improvements have previously been utilised as an office warehouse and can be easily adapted or converted to future uses accordingly.

The property is only 250m from the Mt Eden train station, which will become one of the CRL’s major transport hubs, and mere minutes from the CBD and motorway links.

Colliers International city fringe specialists Jonathan Lynch, Hamish Paterson and Kris Ongley are marketing the property for sale by auction.

It will go under the hammer at 2pm on Wednesday 11 September, unless sold prior.

Lynch says it is a chance to acquire a property with real star quality.

“Every weekday, The Project is produced live at the property and beamed into thousands of Kiwi homes during the 7pm primetime TV slot.

“The popular show – hosted by Jesse Mulligan, Kanoa Lloyd and Jeremy Corbett – is known for its engaging mix of current affairs and entertainment, often with an irreverent and humorous twist.

“It is broadcast online and on Three, which is the flagship MediaWorks television channel.

“The upcoming auction of 71 Boston Road is your chance to secure a premium investment property backed by this unique tenant covenant.

“The property is underpinned by favourable Business Mixed Use zoning and a superb growth location, lending it to future redevelopment.

“Whether you’re looking for a tenanted investment or a land bank opportunity with excellent holding income, this is the project for you.”

The 866sq m building is situated on a 799sq m site with six car parks. Tenant MediaWorks TV Limited is on a two-year lease returning $196,000 plus GST in net annual rent.

Paterson says the site is essentially rectangular, with about 14m of frontage to Boston Road, rising in contour towards the rear boundary.

“The front of the building is a two-level office, set behind a sealed parking area, while the rear is a medium stud warehouse. Both have been seismically strengthened to 80 per cent NBS with a detailed seismic assessment available for interested purchasers.

“Constructed in the 1960s, the property has received substantial financial investment by both the vendor and the tenant.

“It was originally built as a studio and office for Vidcom and is now fully consented for live audience TV shows.”

Paterson says the MediaWorks lease expires in November 2020, presenting a multitude of options.

“A new owner could renegotiate a lease with MediaWorks, taking advantage of the existing consented use and significant tenant goodwill.

“Alternatively, an owner could occupy themselves or find a new tenant for the office and warehouse spaces, which would easily be adaptable to other uses in the future.

“Either option presents a good opportunity for rental uplift, given rising land prices across Eden Terrace as CRL work progresses.”

Ongley says there is excellent redevelopment potential in the longer term.

“The site’s zoning allows for development of up to 21m with a range of uses, including commercial, residential, retail or a mix of these.

“There has been particularly strong demand for new terrace housing and apartments in the area, given the proximity to the Mt Eden train station.”

Recent developments in the area have been of a high quality, as typified by the recently completed Botanica, Botanica Heritage and Miro apartments.

A number of new offices, cafes and bars have also opened nearby in recent years.

Ongley says the property is located on the popular arterial route of Boston Road, which connects Mt Eden Road and Normanby Road to the west and Khyber Pass Road to the east.

“It is five minutes’ drive to Auckland’s CBD and is conveniently located a short distance to both the Southern and Northwestern motorways.

“The property is also a brisk walk to the train station and within minutes of vibrant cafe and bar offerings.

“Hospitality businesses in the area include two renowned bars – the Horse and Trap and Galbraith’s Alehouse – alongside newer offerings such as the Brothers Beer Juke Joint and the Good Home pub.”

The property provides 430sq m of office space and 435.5sq m of industrial space.

The front of the building features a ground floor office and showroom of 200sq m and a first-floor office of 231sq m.

The offices are adjacent to a 116.5sq m covered loading area, which leads to a 278.7sq m warehouse with a 40.3sq m mezzanine.

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Jonathan Lynch

Associate Director

Auckland CBD

Senior expertise in Commercial Property Sales and Leasing in central and city fringe Auckland. Completed over $450 million+ sales transactions over the previous 9 years since joining in early 2010 with a focus on investment properties, mixed-use developments, redevelopment sites comprising under-utilised improvements, land sales and office, retail and warehouse leasing.

BBS Degree (Massey University) majoring in Real Estate; 10 years of business development experience in the FMCG sector and previous role as a property manager at Jonmer Projects providing a comprehensive understanding of key drivers in both general business and the property market, together with the added benefit of an appreciation of client liaison & needs.

Client feedback:

"I'm delighted to be able to offer the sincerest thanks from the owners of 36 Rossmay Terrce and 52 St Lukes Road. Your diligence and professionalism throughout every aspect of these campaigns for the sale of both properties was a strong factor in the extraordinary results achieved for the vendors in each case.

I would be readily recommend you as a 'dream team' within the superb Colliers group." - Parnell Services Limited (for Jonathan Lynch & Hamish Paterson)


"We recently appointed Jonathan Lynch and Peter Kermode of Colliers International to sell our property at 2 Haultain Street, Mt Eden via auction. We found both Jonathan and Peter to be very effective and professional in their approach to the market and generated significant interest resulting in a sale price beyond our expectations.
We have no hesitation in recommending Jonathan, Peter and the investment sales team at Colliers International for anyone considering selling their commercial property".
- Douglas Wood & Robert Allsop-Smith

Please contact me on 021 900 611 for all or any commercial property advice

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Hamish Paterson

Broker

Auckland CBD

A proactive, motivated and versatile professional, accustomed to adapting to challenging environments and delivering under pressure.  

 

Confident communicating at all levels with internal and external relationships, identifying and leveraging off strategic business opportunities.  

 

Possesses an infectious passion, persuasive energy and drive that engages and inspires others.

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