Two multi-tenanted freehold commercial properties have gone up for sale in one of Auckland’s leading urban growth centres, with a myriad of options for investors, owner-occupiers and developers.
The adjacent sites on Northcroft Street, Takapuna, offer a combined landholding of over 2,000 square metres. They form part of Takapuna’s Metropolitan Centre, one of an exclusive handful of centres zoned for development on a scale and intensity second only to Auckland’s CBD.
The two three-level buildings house 30 diverse office and retail tenants, ranging from engineering and legal practices, financial service providers and a careers consultancy, to a Pilates studio, a counselling and psychotherapy centre and businesses providing healthcare and high-end fibre-optic services. A ground-floor retail/showroom tenancy is home to a Royal Enfield motorcycle dealership.
Together, the tenancies generate an annual net rental return of $511,141 plus outgoings and GST.
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Several vacant tenancies present possibilities for owner-occupiers, or for an investor to add value by securing additional tenants. The two sites have an appraised potential rental, when fully occupied, of $800,000 plus outgoings and GST per annum.
The sites’ intensive Metropolitan Centre zoning under Auckland’s unitary plan also offers exceptional possibilities for large-scale redevelopment.
The freehold land and buildings at 18 and 20 Northcroft Street, Takapuna, Auckland, are now on the market for the first time in over two decades. They are being marketed for sale by Dean Gilbert-Smith and Michael Nees of Bayleys North Shore Commercial as sole agents.
The properties will go under the hammer for sale together at an auction on Wednesday, 12 April, unless they are sold prior.
Gilbert-Smith said the existing tenancy profile lent itself to multiple investment options, from passive to a more aggressive rental uplift play. The wide variety of existing tenants and tenancy sizes ensured a diversified income stream, he said.
“Astute investors will note the low rental rates across both buildings, averaging $167 per square metre, and the potential to fill vacant tenancies, which together offer the potential for significant rental upside.
“There are also occupational opportunities to be considered for a local business looking to own in such a hard location to buy.
“In the mid to long term, the size and location of this landholding will lend themselves to redevelopment, taking advantage of the Metropolitan Centre zoning with an unlimited height overlay which is exclusive to only four blocks in Takapuna,” said Gilbert-Smith.
Nees said this zone supported a wide range of uses and was underpinning a boom in activity in Takapuna, including the launch of several high-profile commercial and residential developments.
“With the periphery of the centre being zoned Terrace Housing and Apartment Buildings (the most intensive pure residential zoning under the unitary plan) an abundance of new apartment developments have been consented, sold and built in recent years.
“Successful apartment projects such as the Alba, Sargeson, Lakeview and Eight Lake Pupuke Drive illustrate the suburb’s residential potential and lend further support to commercial activities in the centre.
“With many of central Takapuna’s sites already accounted for by developers or long-term holds for generational landlords, opportunities like those presented by the Northcroft Street sites seldom make the open market,” Nees said.
The property for sale is underpinned by two adjacent freehold titles of over 1,000 square metres each.
The approximately 1,418-square metre building at 18 Northcroft Street houses 18 tenancies with 22 car parks. The building next-door contains a further 12 tenancies with a total floor area of some 1,065 square metres, plus 15 car parks.
Additional parking is available in the new 420-space Toka Puia public car parking building across the road.
Nees said the buildings for sale were well maintained and presented.
“The floor plates are partitioned to provide a range of conventional sized office tenancies, through to smaller suites with shared common areas and meeting rooms, while the ground floor of 18 Northcroft Street contains a retail/showroom tenancy housing the motorcycle dealership,” he said.
Each building comes with some 72 square metres of storage plus covered basement car parking.
- Article supplied by Bayleys
