The building at 360 Cumberland St is tenanted by Otago Polytechnic, the Ministry of Social Development and Wilson Car Parking, which leases out 209 of the overall 270 car parks within the building.
The 4900sq m property was generating income of more than $1 million annually for the owner, JLL agent Chris Harding said in a statement.
Each tenant is on a nine-year lease, since April 2013, and each has two rights of renewal of three years, with a final expiry through to March 2028.
The freehold property, two 1950s buildings fitted out for office use, had been seismically assessed to at least 100% of the New Building Standard, along with the car-parking building, he said.
According to council rating information the building has a new rateable value of $10.3 million, a figure up $100,000 on three years ago, and is owned by Oamaru Property Ltd, whose principal is Peter Lee, of Dunedin. Tenders close on December 19.
Mr Harding said once the council’s Second Generation District Plan becomes operative, next year, it could be possible to take the building up to three storeys as it is in the CBD "edge commercial" zone, with a proposed height limit of 16m.
In October 2013 the building was sold for more than $10 million, to an anonymous local buyer.
The building had been owned by an overseas investment group, and was sold for "in excess of $10 million", land agents said at the time.
The Big Fresh supermarket closed in 2003, with the loss of almost 50 jobs, when then owner Progressive Enterprises decided that after large annual losses it was not worth spending up to $5 million refurbishing the building, which was opened as a supermarket in late 1995.
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Now this would be a better place for a new hotel. Adjacent to shopping and business, not too far from the university. And a better place to have a 10 storey building than Moray Pl.
Now that is a good idea :) We don't have nearly enough parking, especially around the Hospital.