Located in the heart of the CBD and Art Gallery precinct, 10-14 Lorne Street’s iconic sloping profile is well known to Aucklanders.

This freehold standalone property is now available for investors wishing to buy into one of the city’s most strategic locations.

Offered for sale by tender, the property is being marketed by Andrew Bruce and Nicolas Ching of NAI Harcourts, and Bruce Whillans and Henry Thompson of Ray White Commercial.

Originally built for National Mutual in the 1970s, 10-14 Lorne Street is a ten level office building comprising a total lettable area of 5,121m² across nine office floors and four ground floor retail tenancies.

The property has a robust A-Grade seismic rating and recently underwent a significant refurbishment.

Andrew Bruce says the ground floor is fully occupied by four established retailers returning $311,849 pa gross, providing a stable holding income while the new owner decides on how to best use the building.

Fully leased the property is capable of returning approximately $1.3 million net based on an average office rental of $225/psm. Re-leasing the office floors would take advantage of the current shortage of CBD office space and forecasted rental growth over the medium term.

There is also the potential to convert the office floors to residential. Under the current district plan the site has a maximum floor area ratio (FAR) of 10:1 providing room for growth with the potential for a total gross floor area of 7,660m2.

Finally, investors could look to capitalise on the performance of the hotel market, which is experiencing its highest occupancy rate in years (around 80%). The location of 10-14 Lorne Street and its proximity to the University of Auckland, AUT and the civic entertainment precinct make this property ideal for a serviced apartment and/or four star hotel operator.

10-14 Lorne Street is zoned as a Strategic Management Area. Permitted activities include accommodation, education, entertainment, retail, services, office and food and beverage.

The reinforced concrete building rises from a four level base and begins to taper from the fifth floor, giving 10-14 Lorne Street its iconic sloping profile.

Access to the office building is gained off Lorne Street with a double height foyer leading to two sets of lifts at the rear of the lobby. The building’s core is located on the easternmost boundary of the property and delivers open plan floors with large windows overlooking Lorne Street. The office floors have suspended ceiling tiles with recessed fluorescent lighting and power points around the perimeter wall. Level 9 enjoys the unusual feature of a semi enclosed roof garden providing a unique outdoor entertainment area.

The office floors have been refurbished with new carpet tiles and painting throughout. The lobby refurbishment included new feature light fittings and a complete repaint.

Each level is provided with male and female toilet facilities, HVAC and sprinklers.

Bruce says the property holds a prime position on the eastern side of Lorne Street, one of the most desirable and sought after locations in Central Auckland. Surrounded by a mix of upmarket apartments, cafes, restaurants and boutique fashion stores, Lorne Street is regarded as Auckland’s Art Gallery Precinct with the Auckland Art Gallery and several well-known galleries located within the immediate area.

Lorne Street enjoys a high level of connectivity with Queen Street via two through-site pedestrian links at 246 Queen Street, directly opposite the property, and 280 Queen Street, 50m south on Lorne Street.

The property has an excellent street presence, with 32m of retail frontage.

The immediate area has become a major retail destination for university students, with a new Top Shop and Cotton On Mega Store set to open nearby. The completion of ‘X-Gallery’ on the corner of Khartoum Place and Lorne Street has also boosted pedestrian numbers and has enhanced the retail offering on Lorne Street.

Henry Thompson of Ray White Commercial says the opportunity to secure similar free hold, standalone properties in the heart of the CBD are exceptionally rare.

“There are many possibilities for future use, whether it be to lease as office space or the significant scope there is for apartment, hotel or serviced apartment conversion. This represents a unique value-add opportunity to acquire and reposition this iconic building,” Thompson says.

10-14 Lorne Street is offered for sale by tender, unless sold prior. Tenders close at 4pm on Thursday 18 September.