North Shore retail trio to go under the hammer
The two storey building for sale at 473 Lake Rd, Takapuna.
Three North Shore retail premises with appeal for small to medium investors are among 37 properties that will go under the hammer on December 3 as part of Bayleys’ last big Total Property commercial and industrial auction for 2014.
Two of the offerings are located in the popular strip retail locations of Lake Rd and Hurstmere Rd in Takapuna’s CBD while the other is in the Seville shopping precinct in Oteha Valley Rd, Albany.
Damian Stephen of Bayleys North Shore Commercial, who is involved in the marketing of all three properties, says they are in the popular lower value end of the market and are already generating strong inquiry.
The property at 473 Lake Rd, Takapuna comprises a 129 sq m two-storey building with a restaurant on the ground floor and a first floor apartment. It is producing total rental income of $53,100 per annum including GST plus operating expenses (Opex) with approximately 30 per cent of the Opex being non recoverable due to the residential tenancy.
Stephen, who is marketing the property with Eddie Zhong and Terry Kim of Bayleys North Shore Commercial, says it benefits from its high profile frontage onto Lake Rd as well as access and loading via a rear service lane from Northcroft St.
Unit B at 106 Hurstmere Rd, Takapuna generates annual income of $79,500.
The property, with parking room for at least four vehicles at the back of the site, is located on the western side of Lake Rd, between Byron Avenue and Northcroft St and is close to the junction of Northcroft St, Hurstmere Rd and The Strand.
Stephen says the building sits on its own freehold title of 197 sq m with a sixth share also in the of 202 sq m of land comprising the service lane. Because of this it has potential for future development, subject to obtaining the necessary consents, and falls within the Takapuna Metropolitan Centre zone in the proposed Auckland Unitary Plan.
Green Wasabi, a well established Japanese restaurant has been in occupation in the 74 sq m ground floor of the building since September 2011. It provides dine in and takeaway services including bento boxes, sushi, hot pots, soups, Donburi and Sashimi. Zhong says the tenancy’s rectangular shape provides a good flow for serving customers, with amenities to the rear.
The 55 sq m apartment has an entrance door and a single flight of stairs at the rear of the property, also accessed via the service lane from Northcroft St. The tenancy includes a double bedroom with ensuite shower and toilet, a kitchen and living/dining area. Windows to the front of the apartment provide good natural light.
Zhong says a number of the two level buildings in this part of Lake Road have offices above ground floor retail given their prime position in the heart of Takapuna and it would be possible to convert the upper floor to boutique office space. “The area with the Sentinel apartment building close by is a popular retail and food strip with takeaways, restaurants, bars, cafes and general retail,” says Zhong..
Stephen says Green Wasabi’s tenancy expires in May 2016, with no right of renewal, which provides a number of options for the new owners. “They could endeavour to renegotiate the lease, find a new tenant, occupy the building themselves or possibly activate a refurbishment or redevelopment of the property.”
Nearby at Unit B, 106 Hurstmere Road, a 113 sq m single level commercial building with investment risk split across two tenancies is up for auction returning net annual income of $79,500 plus GST through Simon Aldridge of Bayleys North Shore Commercial, Stephen and Zhong.
Aldridge says the unit encompasses two shops with their own amenities, with a fire wall between them, but on one unit title.. A substantial upgrade of the building was completed in the early1990s giving full glass frontage onto Hurstmere Rd and the property also has rear access and loading via a service lane.
The interior of Unit F, 52 Oteha Valley Rd, which earns $36,000 per annum.
The shops are currently occupied by a homeware and gift shop and a fashion retailer with leases finally expiring in late 2018 and early 2019 if renewals are exercised. Previous occupants of the premises have included a pharmacy, superette and a nutrition store.
“Hurstmere Rd is arguably the most sought after strip retail location on the North Shore and there is considerable ongoing development in the area which is likely to intensify under its proposed Metropolitan Centre zoning in the new unitary plan,” says Aldridge.
The third property for sale is Unit F, 52 Oteha Valley Rd, Albany comprising a 92.5 sq m ground floor cafe plus an exclusive 13.75 sq m outdoor area in the centre of The Seville Shopping Centre, along with six exclusive stacked car parks. It is also being marketed by Stephen, Zhong and Kim.
The unit is producing net annual rental income of $36,000 per annum plus GST from a lease to Gina’s Café and Cakes. The business offers eat in and takeaway options including breakfast, brunch and lunch as well as full cakes to take away. Its current lease runs until May 2015, with four three-year rights of renewal.
The Seville convenience retail centre has 13 shops including a liquor store, hair salon, fruit and vege store, butcher’s shop, Chinese, fish & chip and roast takeaways, a superette, appliance store and a bakery.
The complex was built in 2001-2002 of tilt slab concrete construction. Kim says the property is run by an established body corporate and the units are tightly held by a mix of owner occupiers and investors.
“Seville is located in a high profile position within a substantial residential area and also benefits from a high volume of passing traffic on busy Oteha Valley Rd, a main arterial which runs between the Albany Highway and the State Highway One motorway,” says Kim. He says the centre has excellent drive through access off Oteha Valley Rd with lots of parallel parking in front of the shops.
Damien Stephen of Bayleys North Shore Commercial.