A prominent Takapuna office building has been placed on the market for sale. Located at 507 Lake Road on the corner of Huron Street, the six-storey building with basement parking has sea views to Rangitoto, as well as expansive city views to the south and west.
The building is in a prime location in the very centre of Takapuna in a rapidly developing precinct of eateries and public amenities and directly opposite the new Anzac Square which is currently under construction.
It is in close proximity to the Shore City Shopping Centre and multi-level car parks, public transport, and with connections through to the recently redeveloped Hurstmere Road shopping precinct and Takapuna Beach.
The property which has upside potential is being offered to the market for sale by tender closing Thursday March 10, unless sold prior.
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The property is being marketed jointly by Matt Mimmack, director of Bayleys North Shore Commercial, Simon Aldridge co-founder of Black Haus, and Matt Prentice a director at Colliers International.
The Takapuna area has seen a surge of private and public sector investment and development in the past two years with the Hurstmere Road upgrade, new Anzac Square and private redevelopment adjoining the Bruce Mason Theatre.
Many apartment developments across Takapuna will add significantly to the local catchment of Takapuna.
“This is an iconic building on a corner site with potential upside from rent reviews and possible conversion in the future to apartments or a hotel,” Mimmack says.
Each commercial floor plate is approximately 560sqm net with varying tenancy configurations ranging from a single tenant occupying an entire floor to five tenancies on the lower levels.
The 21 tenants include large corporates as well as smaller businesses in the legal and health services. Major tenants include Gull Petroleum, Market Economics, Winstone Pulp, CBCA, Anderson Accounting, Public Trust, Chen Law, and others.
Prentice says the rents are reasonably priced for the location and the different length of lease terms means there are opportunities for staggered rent reviews beginning in the next couple of years.
“When fully leased the gross lettable area of 3,246sqm returns annual net rental of $1,040,212. It offers a return that is certainly better than the current bank term deposits,” Prentice says.
“The building is on a main arterial route with natural light and upper level views to Rangitoto and the city,” Prentice says.
The split risk between larger full floor tenancies and smaller multi-tenanted floors and the ability to convert between the two is where typical Takapuna businesses sit, according to Simon Aldridge of Black Haus.
“There’s some rental upside, and the 20 basement car parks are always going to have high value regardless of changing trends,” Aldridge says.
The zoning of land within the precinct is Business - Metropolitan Centre Zone. The Takapuna 1 sub precinct B Precinct incorporates the central area of Takapuna.
The building construction consists of reinforced concrete structure, fire rated glazing, long run steel roofing, and internal carpet and tile floor linings, air conditioning, plus a covered pedestrian canopy with cobblestone paving.
The interior has been completely stripped back to the concrete and refurbished to suit the current tenants. All air-conditioning units have been fitted with special Covid-19 filters.
“The underlying zoning is commercial and allows residential, which opens the possibility of future conversion to apartments, or possibly a hotel, pending resource consent,” Aldridge says.
“It’s equally an attractive long term hold for an investor. The Waiwharariki Anzac car park redevelopment over the road will be the new focal point in Takapuna,” Aldridge says.
Construction of Waiwharariki Anzac Square has begun and is due to open to the public in mid-2023 with the aim of strengthening connections within Takapuna and through to the beach. It will provide a welcoming place for the community to relax and spend time in, with space for a market and events.
- Article supplied by Bayleys
