Large and prominent Takapuna motel site for sale

1:52 PM Friday October 4, 2019 True Commercial

2 Rewiti Avenue in Takapuna. Photo / Supplied

A well-established Takapuna motel is for sale in a prime location, presenting an opportunity to occupy, redevelop or land bank in one of Auckland’s most sought-after suburbs.
The 32-room Parklane Motor Inn is strategically positioned on the high-profile corner of Rewiti Avenue and busy Lake Road, giving it huge exposure to arterial traffic.
It is a very short walk to both Takapuna Beach and the town centre, as well as being only a few minutes’ drive from the motorway, providing excellent accessibility.
The property comprises three standalone concrete buildings on a 3,116sq m site with 30 car parks. The freehold land is zoned Mixed Housing Urban, which allows for intensive residential redevelopment in the future.
Colliers International is marketing the property at 2 Rewiti Avenue for sale by deadline private treaty closing at 4pm on Thursday 24 October, unless it is sold earlier.
Director Shoneet Chand of Colliers North Shore says it is a rare chance to invest in a booming sector in a very tightly held market.
“The property is offered for sale with vacant possession, allowing an owner-operator or investor to utilise and improve the existing buildings in their current use.
“The motel currently has a 70 per cent occupancy rate and the lowest room rates in Takapuna, providing potential for growth.
This puts it in a strong position to capitalise on demand for short stay accommodation as New Zealand’s tourism boom continues.
“A buyer could tidy up the existing facilities and run the motel more effectively, maximising the potential on offer. There is also an opportunity to reposition the rooms from short stay accommodation to longer-term rentals.
“The property also has huge add value potential. The favourable zoning, location and gentle contour of the site make it ideal for potential development.
“There is a significant opportunity to fully redevelop the property with a new residential offering, taking full advantage of the zoning and the stunning views the site could offer.
“Astute buyers will also appreciate the potential to realise future capital gains from the underlying value of the land, given its location in a sought-after area.
“Add-value properties rarely come to the open market in Takapuna, especially of this size and prominence. This is a truly impressive opportunity for occupiers, investors, developers and land bankers.”
Developed in 1988, the property comprises a complex of three-storey concrete buildings along with an outdoor swimming pool and on-grade car parking. The buildings have a 75 per cent IEP seismic rating.
The hotel-style studio rooms range in size from 25sq m to 35sq m. There are 13 queen studios, 12 twin studios, five spa studios and two family studios.
Guest facilities include three conference rooms, a poolside breakfast room, a guest laundry and a small gym and sauna.
Staff areas include a reception, commercial kitchen and back of house facilities.
Director Matt Prentice of Colliers North Shore says the property is very well located within walking distance to Takapuna Town Centre and Takapuna Beach.
“The property is situated within an affluent residential catchment, supporting future redevelopment prospects – especially as intensification and demographic changes continue to create growth in the area.
“A massive influx of residential development has recently transformed the Takapuna skyline, with a number of apartment buildings between four to six levels either completed or under construction.”
Prentice says Takapuna is considered the North Shore’s premier commercial and residential centre, providing shopping, recreation, housing and employment in a beachfront setting only 9km from Auckland’s CBD.
“Amenity in the area includes numerous cafes, bars, restaurants, public car parking, a movie theatre, gyms and the Shore City shopping centre.
“Regular public transport services provide good accessibility, while Auckland CBD is only 10 minutes’ drive away at off-peak times via the Northern Motorway.”
Josh Coburn, Site Sales Director at Colliers International, says the corner site enjoys extensive frontage to Lake Road near the intersection of Esmonde Road.
“The property has huge exposure some of the North Shore’s busiest arterial routes. There is more than 100m of frontage in total, comprising almost 58m to Lake Road and 50m to Rewiti Ave.
“From Lake Road, the site slopes steeply by some 6m to 7m, but is predominantly level from the base of the buildings.”
Coburn says the property benefits from reasonably high-intensity zoning under the Auckland Unitary Plan, providing for greater densification than previously allowed.
“Auckland Council intends for neighbourhoods with Mixed Housing Urban zoning to change in appearance over time.
“Development of up to three storeys is allowed in a variety of sizes and forms, including detached dwellings, terrace housing and low-rise apartments.
“Quality design will be a crucial consideration for developers looking to achieve higher density on the site, as the consent process will consider the visual impact on the neighbourhood.”
Prospective purchasers are encouraged to seek independent planning advice on what could be achieved on the site.