Two fully leased North Shore commercial buildings are for sale in Bayleys’ latest national Total Property commercial portfolio with the added bonus of resource consents for residential conversion.
A high profile corner property in the commercial centre of Mairangi Bay Village is up for sale with a resource consent in place for a four-level retail and apartment building.
Located at 368 Beach Rd, the offering comprises a fully leased 644 sq m commercial building on 836 sq m of land with frontage also to Hastings Rd.
The property is for sale by Deadline Private Treaty closing at 4pm, October 25, unless sold prior. It is being marketed by Michael Nees, Dean Gilbert-Smith and Eddie Zhong of Bayleys North Shore Commercial.
“Situated in a prominent corner position on Beach Rd, the East Coast Bays' primary coastal arterial route, this property is one of only a few commercial titles in the sought after Mairangi Bay Village and one of even fewer to be offered publicly to the market in recent years,” says Michael Nees. “It is strategically located in the middle of the township opposite the village’s only pedestrian crossing with an abundance of public car parking nearby.”
The two-level building has four retail outlets and an ATM machine at ground level, comprising longstanding Sushi and Chinese takeaways, a Star shop and one shop formerly occupied by a pizza outlet which has a 12 month vendor rental underwrite from settlement. Upper level office space is occupied by a legal firm and there are 13 car parks at the rear of the site.
The property is currently generating total net annual rental income of $207,472 plus GST.
“The offering represents an ideal balance of land and income - a large freehold site with a substantial and diversified cashflow all underpinned by a blue chip locality,” says Nees. “This is a perfect nest egg for investors, family trusts and land bankers with an eye for the future.”
Dean Gilbert-Smith says the property offers plenty of add value opportunities for the next owner. Modest existing rental levels provide the prospect of future rental upside while the site’s Town Centre zoning enables it to be more intensively developed.
“The existing building could potentially be upgraded and expanded both upwards as well as outwards on the currently underutilised land at the rear of the site. Or the site could be completely redeveloped along the lines of the mixed use development for which resource consent has been granted and which makes full use of the site”.
The consented redevelopment plans have two retail units at ground level and three levels of residential units above comprising 12 apartments.
“The site’s northerly aspect and corner positon, which means it benefits from plenty of natural light, makes it ideally suited for residential development as does its location in the heart of a popular seaside village and within a short walk of one of Auckland’s nicest beaches,” says Dean Gilbert-Smith.
Eddie Zhong says the Mairangi Bay Village provides a convenient local service retail hub for the surrounding residential suburbs of Mairangi, Murrays, Rothesay, Campbells and Castor bays and is anchored by several hospitability hotspots and a Countdown Supermarket.
He says there is a large proportion of “baby boomers” in the surrounding affluent residential population many of whom are looking to down size from traditional family homes. “This will create strong demand for a high quality apartments and townhouses close to the village. This in turn will increase value for the limited sites within the area with favorable, intensive zoning attributes like 368 Beach Rd. As such you would expect it be in hot demand in the medium term from developers looking to cash in on what would be a special opportunity.”
Eddie Zhong says while Mairangi Bay provides a relaxed seaside atmosphere it also has good access to public transport and the motorway network. It is located around five minutes’ drive from Constellation Drive and in turn Auckland’s Northern Motorway and “Park and Ride” bus service. A dedicated bus route running through Beach Rd to Takapuna and the Auckland CBD also provides a valuable public transport amenity.
Also for sale in Bayleys’ latest Total Property portfolio is Unit A, 179 Archers Rd, Wairau Valley, comprising 1409 sq m of commercial and industrial space with a resource consent in place for a mixed use, predominantly residential development incorporating 14 apartments.
The property is also fully leased and is generating net annual rental income of $259,040 plus GST from six tenancies. It is for sale by negotiation and is being marketed by Ranjan Unka, Eddie Zhong and Anna Radkevich, Bayleys North Shore Commercial
Ranjan Unka says the building was extensively refurbished and upgraded in 2010 and has an A Grade seismic assessment of 100% of New Building Standard. It now encompasses two levels of modern quality air-conditioned commercial spacing totaling 1062 sq m with substantial exposure to Archers Rd plus a 268 sq m medium stud warehouse and 70 sq m of associated offices located at the rear of the building.
The offering is one of two substantial units situated on the northern corner of the intersection of Archers Rd and Sunnybrae Rd, two of the Wairau Valley’s busier roads. Unka says one of the property’s features is its excellent on-site parking with approximately 26 spaces, 10 at the front of site with a further 16 at the rear, all of which are accessed from Sunnybrae Rd.
The extensively glazed Archers Rd frontage has three ground floor tenancies and a further two on the first floor. Uplift Fitness Boutique Limited, which provides a wide range of fitness services, occupies the northern and largest tenancy on the ground floor which comprises 240 sq m of gymnasium space.
Adjoining it is the 132 sq m La Pachamama store which specialises in South American teas and foods, including a full range of artisan sweets made in Argentina. The final 90 sq m ground floor tenancy is occupied by a beauty salon.
On the upper level, Community Education Foundation Aotearoa leases 350 sq m of office space with amenities including a kitchenette and men’s and women’s toilets. The remainder of the first floor provides 250 sq m of high quality showroom space for home furnishing retailer Lounge and Living with direct pedestrian access available from Archers Rd.
Aluminium cladding specialist Panelab Limited occupies the warehouse accommodation which includes a roller door entry along with a pedestrian door.
The leases all have personal guarantees with terms ranging up to five years with an average weighted lease term of just under four years, says Ranjan Unka.
“This is a very well presented building which first and foremost offers a solid investment opportunity with good rental growth prospects. But it also comes with the added bonus of a resource consent for a change of use to residential.”
The Resource Consent approval provides for alterations to the ground floor to provide retail together with storage and covered car parking with the existing commercial space on the first floor being converted to apartments. A further two levels of apartments could be added on top providing a total of 14 three-bedroom apartments.
Ranjan Unka says surrounding properties predominantly comprise a range of smaller to medium sized industrial buildings and showrooms developed during the 1960s through to the mid 1980s.
“However, in more recent times, the upgrading and conversion of conventional industrial structures to provide modern office or showroom accommodation has become a feature of the Wairau Valley along with large format retail complexes such as a Pak’ n ’Save supermarket and Mitre 10 Mega and Bunnings stores.”
Bayleys North Shore Commercial
Devereux Howe-Smith Realty Limited, Bayleys, Licensed under the REA Act 2008
D +64 9 489 0999 | F +64 9 489 0990
29 Northcroft Street, Takapuna, Auckland 0622
