Bank buildings posted for sale

1:21 PM Wednesday August 6, 2014 Colin Taylor

NZ Post and Kiwibank at 1990 Great North Rd, Avondale.

Town Centre zoning allows intensive upward development

Two high-profile suburban retail properties occupied by New Zealand Post and Kiwibank outlets in Avondale and Birkenhead are for sale as investment opportunities.

The properties, at 1990 Great North Rd, Avondale, and 22 Mokoia Rd, Birkenhead, are being marketed by Cam Paterson of Barfoot & Thompson Commercial.

With Dave Palmer, Paterson is offering the Avondale property for sale by auction at 10.30am on August 20 unless it is sold earlier. Paterson has teamed up with Grant Magill to sell the Birkenhead property, also by auction at the same time on August 20 in Barfoot & Thompson's auction room at 34 Shortland St.

Paterson says the 1990 Great North Rd property has been in government ownership for many years.

"It consists of three tenancies which occupy a solid 851sq m building on a 1029sq m parcel of freehold land in a strong retail position in Avondale," Paterson says.

"The property has a net lettable area of 730sq m and is on the eastern side of Great North Rd within the Avondale strip retail shopping precinct. It also backs on to Geddes Rd which offers rear access for car parking and could in time be favourable to development."

The rectangular shaped site has a frontage of about 16m on to Great North Rd and Geddes Terrace, and abuts commercial properties on both sides to a depth of about 65m.

Palmer says the property is zoned Business 2 under the Operative District Plan while the proposed Unitary Plan indicates a Town Centre zoning that provides for commercial and residential uses. "Town Centre in this location allows for intensive development up to a height of 32.5m offering the potential for substantial upscale development," he says.

The property covers about 40 per cent of the site. The high stud retail level with frontage on to Great North Rd encompasses the two main tenancies totalling 415sq m in addition to an access way to the upper level tenancy.

The property generates a total of $116,790 a year with Bargain City occupying the majority of the ground floor and paying $63,000 a year on a lease expiring in September 2023 with all rights of renewal exercised.

New Zealand Post pays annual rent of $18,598 on a lease expiring in April 2026 if all rights of renewal are exercised and the Electoral Office, which is part of the greater NZ Post operation, occupies the majority of the upper level of the property which earns $35,192 a year on a lease running through to May 2023 if all rights or renewal are exercised.

"All the materials that have been used in this structure are low maintenance materials favoured by investors," Palmer says.

"The property has been seismically rated at 89 per cent of NBS [New Build Standard] well above the statutory upgrade requirement of 34 per cent within 15 years."

The 22 Mokoia Rd retail property has operated as an outlet for New Zealand Post and Kiwibank for many years.

"It consists of two tenancies generating combined total rent of $94, 386 occupying a solid 851sq m building over two levels on a 759sq m freehold and Business 2 zoned site in a strong retail position within the Birkenhead shopping precinct," Paterson says.

The upper level is on street level and set back about eight metres from the Mokoia Rd footpath. The front has attractive planter boxes and this could offer a sunny courtyard position for future uses.

The upper level main retail space has been attractively fitted out for Kiwibank and NZ Post retail outlets. "The layout comprises a modern style open retail space with meeting rooms to the western side," Paterson says. Through security doors, the space to the rear is divided into offices, bathrooms and amenities with views south to the city, and a stairwell leading to the rear of the property.

The lower level 405sq m tenancy is accessed from the rear and is occupied by Crossfit Birkenhead as a gymnasium. Magill says both tenancies are self-contained with direct access and bathroom amenities.

"Again materials that have been used in this structure are low maintenance materials and the property has been seismically assessed at 78 per cent of NBS.

"The site location under the proposed Unitary Plan is designated Town Centre allowing for intensive development allowing for height up to 24.5m or six levels," Magill says.

-NZ Herald