Warkworth property ticks the boxes

5:00 AM Saturday June 24, 2017 Colin Taylor

The property for sale at 11 Neville St incorporates Warkworth’s historic BNZ building. Photo / Supplied

A retail and office development encompassing a fully refurbished and strengthened Art Deco building is for sale in Warkworth north of Auckland.

The multi-tenanted commercial complex at 11 Neville St incorporates the town’s historic BNZ and features in the latest Colliers Portfolio.

The property is being marketed for sale by tender by Jonathan Lynch and Shoneet Chand of Colliers International in conjunction Richard Parkinson of DC Realty. Offers close at 4pm on Tuesday, July 20, unless it sells earlier by negotiation.

“This is an outstanding opportunity to secure a property that ticks all the boxes across key investment criteria,” Lynch says. “The offering comes with long-term leases, an outstanding tenant covenant, fixed rental growth, a superb location and future development potential.

“Seldom do investments with such strong fundamentals come onto the open market in this fast-growing community.”

Lynch says the property comprises two standalone buildings on an 812sq m freehold site and has active resource and building consents for a third and final building when a new owner chooses to develop further.

“The historic two-storey Art Deco BNZ Building has been strengthened and fully refurbished, including the complete replacement of its roof,” he says.

“Next door, developer Q Construction has built a new, state-of-the-art retail and office complex rated at 100 per cent of new building standards [NBS]. The two-storey building features a cutting-edge design with good natural light, an internal courtyard, dynamic spaces with rich textures and top-quality finishes.”

The older building has been strengthened to above 67 per cent of NBS standards.

Chand says the property has a net lettable area of 930.27sq m and is leased to six tenants - including a vacant underwritten area.

“Anchored by BNZ on a nine-year lease, it earns annual rent of $270,598 plus GST,” he says.

“Future rental growth is locked in with a combination of fixed increases and market rent reviews.”

Anchor tenant BNZ occupies a 245.37sq m ground floor lease in the new building paying $73,611 per annum plus GST in rent.

Vintage and antique store Vintage Vault occupies 137sq m on the ground floor of the old BNZ Building paying $47,950 annually.

The New Zealand Transport Agency, which is committed to the Northern Motorway extension to be built in the area, occupies a 99.1sq m office which earns $29,730 in annual rent.

Motion-graphic design and video studio Darkroom occupies a 139.5sq m office on the first floor of the old BNZ Building and pays $34,250 per annum.

Riverside Dental occupies a 118.2sq m area in return for annual rent of $32,505.

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An elevated view of the retail and office development for sale in Warkworth within blue border. Photo / Supplied

A vacant 191.1sq m space for lease generates an additional $52,552.50 in annual rent via an underwrite for a term of 12 months.

Chand says the building is strategically located in central Warkworth, close to a New World supermarket and its main central car park.

“Situated on Warkworth's most central thoroughfare, is has great exposure to high volumes of passing traffic and pedestrians. A new large-scale development is underway directly across the road, encompassing a retirement village and retail shops fronting Neville St.”

Chand says the property has future development potential on an area of undeveloped land to the rear of the BNZ Building.

“The developers have drawn up plans for an additional two-storey building on the site including an 89.38sq m retail tenancy on the ground floor and 83.42sq m of office space above.”

The property is zoned Business Town Centre under the Auckland Unitary Plan, which provides for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services.

Chand says a range of possible building heights can be developed, depending on the context, with provisions typically enabling buildings of between four and eight storeys.

“Buildings within the zone require resource consent to ensure they are designed to a high standard.”

Parkinson says Warkworth benefits from the large numbers of weekend and holiday visitors to the Omaha area, as well as being the main service centre for the large North Rodney residential catchment.

“Lifestyle blocks, retirement housing and holiday homes are key features of the area,” he says.

“The shops in Warkworth are busy throughout the week catering to local customers from across the Rodney area, and there is the bonus of extra business from holidaymakers passing through the town.”

“The area has been identified as a key growth node in the Auckland Regional Growth Strategy, with well-planned and sustainable development being a vital part of the growth needed to support and service an increasing local population.”

Rodney has a population of about 60,000, and is projected to continue growing.

“The area’s rapid growth is fuelled by the attractiveness of its coastline, its lifestyle opportunities and its location just an hour north of central Auckland,” Parkinson says.

Warkworth also acts as the gateway to the Matakana wine region with its well-known farmers’ market, providing a further tourist draw.

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Jonathan Lynch and Shoneet Chand of Colliers International