A rare mixed-use asset in the main street of Takapuna presents buyers with the opportunity to acquire a property that provides multiple income streams with favourable zoning and significant future growth potential.
164-168 Hurstmere Road in Takapuna is a two-level building with 217sq m of total floor area that has a three-bedroom apartment on the top level and two ground floor retail units with excellent street frontage. When fully leased, the total net annual rental income is estimated at $102,573 plus GST.
The property, which is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan, sits on 241sq m of freehold land. Under this designation, intensive, multi-level development – both residential and commercial – is permitted, underpinning the value of this asset.
Positioned approximately 200m from one of Auckland’s most popular beaches, residential demand in this location is very strong with new developments either planned or under construction nearby.
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Takapuna provides a major commercial and retail centre for the North Shore, being located approximately 12km north of the CBD, via the Auckland Harbour Bridge and motorway, which is only a few minutes away in off-peak traffic.
Colliers Directors Matt Prentice and Shoneet Chand have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 11 May, unless sold prior.
Tapas and wine bar Taylors on Hurstmere leases 43sq m of ground floor retail space on a two-year term that began in May 2021 and has one further right of renewal for two years. Their lease provides $28,773 plus GST in net annual rental income.
The neighbouring retail tenancy is a 54sq m unit and the current tenant is vacating the premises in June. The three-bedroom apartment provides approximately 120sq m of space and is currently vacant with an appraised market rental figure of $46,800 plus GST per annum.
Prentice, Director of Sales and Leasing at Colliers, says it’s incredibly rare to see an offering such as this one being presented to the market.
“The prospect of being able to acquire a three-bedroom apartment on a freehold title in Takapuna alongside the added benefit of income from two main road retail shops makes this the perfect package,” Prentice says.
“With an abundance of add-value options available, including further development over the existing private garden area of the apartment, subject to consent, this strategic offering will be appealing to a wide range of buyers.
“Given one of the tenancies will soon be vacant, there is further potential to grow the rental stream. Retail tenancies in Takapuna generate significant demand in the market and this space promises to be highly sought-after.
“Owner-occupiers may see the value in living in the apartment and using the soon-to-be-vacant unit below or alternatively a passive investor may wish to tenant the property and enjoy the rental income.
“Developers may have even bigger plans for the site, which can be made possible through the Metropolitan Centre zoning. Any upwards development would provide wonderful sea views.”
Chand, Director of Investment Sales at Colliers, says the property enjoys outstanding street presence in a prominent location that has experienced extensive development recently.
“The building is part of a popular commercial hub with solid pedestrian numbers, while there is also a steady traffic flow,” Chand says.
“As this is a prime retail location, the surrounding properties are well presented and maintained, leading to high-profile tenants. Top-quality development within the immediate vicinity comprises of medium-to-larger sized retail premises, including cafes, liquor stores, restaurants, an art gallery and The Bruce Mason Theatre, making it Takapuna's premier entertainment hub.”
- Article supplied by Colliers
