The high-profile triple-fronted beachfront corner site at 105-111 Hurstmere Road, along the main Takapuna town centre strip, is now on the market by way of tender, closing 12pm Wednesday 16th March, unless sold prior, with Bayleys.
The property comprises a striking 1,113sqm three-level building incorporating basement parking for 33 vehicles and is fully-occupied by a mix of service and retail tenants.
Peta Laery and Michael Nees, Bayleys North Shore Commercial along with Ryan Johnson, Bayleys Auckland Central, are marketing the property.
“This is an epic 916sqm site with arguably the best views in the city, and favourable underlying zoning offering scope for either a broad brush redevelopment to optimise the value of the location – or a refurbishment,” said Laery.
“The Takapuna market has been starved of opportunities like this and while developers will be on high alert given the advantageous existing lease terms, allowable height thresholds and sustained demand for North Shore property, it’s just as likely to mesh with investors looking for a medium-hold commercial asset.
“The property has been strategically-managed and boasts a superb leasing history with one of the occupiers – Premium Realty – having been on site in the coveted corner ground floor spot for 26 years and with around three years to run on its existing lease.”
The asset currently has a net annual income of $455,007 across four tenants – WBB Accountants occupying the entire top floor, Holbrook Law on the ground floor looking towards the beach, Kino Day Spa also on the ground floor, and Premium Real Estate in the high-exposure corner road frontage position.
The occupiers are largely on short remaining lease terms, with only WBB Accountants having an exercisable right-of-renewal, giving flexibility for a new owner.
Nees said Takapuna is one of just 10 Metropolitan-zoned centres in the Auckland region. This gives it sought-after intensification and commercial growth credentials and these locational advantages will underpin the future of the subject property.
“Our understanding is that the Business-Metropolitan Centre zoning would potentially permit redevelopment up to 24.5 metres, allowing the creation of an additional couple of levels to further unlock the grandstand views.
“The zoning inherently allows medium-rise residential, accommodation or office buildings and the demand is there for all of these sectors on the North Shore – particularly when you factor in the high level of amenity in the Hurstmere Road precinct, the proximity to motorway interchanges and the city, and the ongoing beautification and upgrades to the Takapuna Town Centre.
“Final expiry dates for the existing tenants would allow some holding income and time to formulate redevelopment plans.”
The property has an initial seismic evaluation of 58 percent new building standard and there are some deferred capital works which, if addressed, would allow an investor to add the property to a portfolio with the knowledge that the zoning would underscore any future value of the asset.
The Council’s Takapuna Centre Plan is realising the vision for a vibrant and revitalised centre with upgraded public spaces, roading infrastructure and amenity following the completion of the Hurstmere Road transformation project.
Laery said the continued focus and prioritising by Council to maximise the performance of their existing assets is encouraging new investment from private landlords in the Takapuna area and giving the market additional confidence.
“One of the key projects identified for Takapuna is the redevelopment of the Anzac Street Carpark less than 200-metres from the Hurstmere Road property we’re marketing.
“This site is earmarked for redevelopment into nine levels of high-quality retail, commercial and accommodation with developer Willis Bond partnering with Council entity Eke Panuku Development Auckland to create energy in and around a new town centre, Waiwharariki Anzac Square.
“There is also a strong focus on unlocking access to Takapuna Beach through from the Shore City shopping centre to Anzac Street Carpark site to Hurstmere Road, with this achieved through the acquisition of private property and the establishment of ‘Hurstmere Green’.”
105-111 Hurstmere Road is close to public transport routes, and is a few minutes’ drive to State Highway 1 with access both north, and onwards to the west, and to the south across the Harbour Bridge.