With work progressing on Auckland’s City Rail Link project, salespeople are noting a rise in inquiry and demand for commercial properties in close proximity to core stations. Those within easy distance of Karanga-a-Hape Station, on the site of the former Mercury Lane foodcourt just off Karangahape Road, are no exception.
A fully refurbished, upgraded and strengthened three-level 1920s’ building which is fully-leased, and located at 375 Karangahape Road just 350m from the new station, is expected to draw strong interest from passive investors, say Damien Bullick and Alan Haydock of Bayleys Auckland Metro Markets team.
The building which is at 100-percent new-building standard provides basement, ground floor and first floor character space. There is a total floor area of 543sqm and the freehold land area is 224sqm.
The upper two levels are home to popular Italian-inspired eatery Otto. The top floor is used by Otto as private dining rooms for larger groups, separate from the main restaurant.
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The 172.28sqm high-stud basement level, which is fitted out as an open-plan bar or function venue, can be offered with a two-year lease in place or vacant if required. This part of the building has access off Karangahape Road and via an external rear access point from neighbouring Day Street.
External billboards add to the occupier mix, and benefit from high exposure to city bound traffic.
There is a new five-year lease in place to Otto as anchor tenant, and the property as a whole returns net annual income of $368,557 plus GST, with fixed annual growth.
The building has elevated northwest views over State Highway 1, the Te Ara I Whiti-The Lightpath cycleway, affectionately known as The Pink Path, and beyond to the harbour bridge, while overlooking Karangahape Road at the southeast frontage.
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Haydock says the building has good natural light and a characterful industrial fitout which suits the restaurant operation and is representative of K’Rd’s eclecticism.
“American newspaper the Washington Post recently dubbed K’Rd ‘one of the most interesting places to visit in Auckland’, while a few years back, international media and hospitality brand Time Out named it the 6th coolest street in the world, lauding its character as the bohemian heart of the city.
“It’s a vibrant destination in itself with independent retailers and an active hospitality scene, and this property’s anchor tenant Otto has a loyal following as a popular restaurant along the main K’Rd strip.”
The location adjacent to a public transport node and elevated above the motorway network means the property cannot be built out, says Bullick and the character elements of the building underpin its occupier appeal.
“Prior to Otto expanding into the upper level as a private dining area, the space was leased by an architectural design firm so could revert to office use in the future as character space is always in demand, particularly by the creative and professional sector,” he says.
“As the CRL project draws closer to opening, we expect to see further urban renewal in the wider areas around the stations, including higher-density residential development which in turn supports retail and hospitality.
“There have been a number of high-end residential apartments developed on the K’Road ridge and it is getting harder to secure property across typologies in the precinct.
“The subject property will suit a passive investor looking for an asset with a point of difference in the market, and with an anticipated wave of money coming off term deposits as rates drop, commercial properties with strong leases will be in demand.”
- Supplied by Bayleys
