56 Lunn Ave is a retail conversion opportunity
One of the last opportunities to buy commercial property in the successful retail precinct between Remuera/Meadowbank and Mt Wellington has come up with the sale of 56 Lunn Ave, Auckland.
The 1906sq m property sits on a prominent 3237sq m site in the fast-growing retail area. It could be occupied by a single large retailer or split into smaller tenancies subject to resource consent, according to Colliers International brokers Charlie Oscroft and Leroy Wolland, who are handling the sale.
The freehold property, which is offered with short term holding income, is for sale by deadline private treaty closing on October 11, unless sold prior.
The existing building is well-structured and adaptible, Oscroft says. “We see this as primarily an opportunity for a developer to work with the current building and add value through refurbishment. It could either be renovated as a single large showroom or divided into multiple tenancies,” he says.
“Equally, an owner occupier could take the building as is and use it for showroom, trade or large format retail purposes. We expect to receive a lot of interest, both from businesses wanting to be part of the Lunn Ave action and from developers with an eye for the potential value in this property and the broader location.”
The property is on the market following the current owner-occupier’s decision to take larger premises following an expansion in their business, after seven years at 56 Lunn Ave.
“The current owner is a distribution business needing to re-locate to substantially larger premises,” says Oscroft. “Over this business’ time in Lunn Ave, the street has changed from distribution and warehousing uses to a major retail destination. Number 56 is one of the few remaining properties on the street, with good access and excellent street profile suitable for conversion to retail. It is also only two doors up from the 12,000 square metre Mitre 10 Mega.”
Lunn Ave location
The Lunn Ave retail area has intensified rapidly from its former industrial use to become the thriving retail hub it is today, says Wolland.
“Colliers International has led the transformation of this area since 2007, when the area was a blank canvas – nothing but bare land. Our sales and retail leasing teams have worked closely together to sell and lease a large number of sites over the past five years, resulting in a very successful neighbourhood centre where locals shop and meet.”
The precinct is now home to a range of retailers, from large-format through to small convenience shops. These retailers have all recognised the benefits being located in this area, with Lunn Ave’s proximity to the large neighbouring residential catchment covering Remuera, Meadowbank and the Stonefields subdivision; as well as the large volumes of passing traffic along the avenue.
Some of the most recent well-known names to open along the avenue (many of which purchased land and/or negotiated leases through Colliers International) include New World, Farro, Animates, BP, AA and ASB Bank; as well as Factory Frames, Moda Kitchens, Mt Smart Marine, Repco, Looksharp and Wet & Forget which have all recently opened in one building at 72 Lunn Ave, says Wolland.
“While the area has proved hugely attractive to retailers, with a large number of stores opening along Lunn Ave over the past year – resulting in the precinct’s strong growth trend continuing – the area is now approaching capacity,” he says.
Some of the most recognised brands in New Zealand – including Subway, Dunkin’ Donuts, Westpac, McDonalds, Placemakers and Mitre 10 Mega – are now well-established on this busy street and enjoying successful trading, says Oscroft.
“These brands have been attracted by the demographic trends in the area, with 6,500 people moving into Stonefields over time, plus the accessibility and visibility that this busy street offers.”
Oscroft says the original plans for the side of the road facing the former quarry (now Stonefields) were very ambitious, and were shelved following the onset of the global financial crisis. “What we have seen at Lunn Ave is the adaptive nature of the market, with the financial crisis in some ways having enabled commercial development here. Land prices fell to an extent that made new development viable.”
Wolland says Lunn Ave is busy every day from morning until late evening. “People living in the surrounding area were crying out for a centre like this, as there were few options nearby for local people to go to eat, buy groceries or meet for a drink.”
Wolland says that although retail leasing opportunities along Lunn Ave are becoming few and far between, there will be opportunities over the longer term for new retail conversions as the leases on a small number of industrial premises further down towards the Ellerslie-Panmure Highway expire.
“We expect any further opportunites to be quickly snapped up, as we expect to be the case with 56 Lunn Ave. There is considerable demand from showroom operators and retailers who want to get into the area. It has now become a destination, particularly since Mitre 10 Mega and New World opened their doors. The Warehouse also owns a 3ha corner site in the Lunn Ave retail precinct.”
New traffic lights will aid in reducing congestion and improving traffic flow along Lunn Ave, Wolland says.
Print this article or Email to a friend