Split-risk retail and office property offers abundant character
A mixed-use property with abundant character for sale in the heart of Auckland’s vibrant Parnell offers investors a rare chance to acquire a split-risk asset in a tightly held city fringe location.
The 1,117sq m retail and office property at 157-171 Parnell Road is being marketed for sale by Colliers International.
Offers by way of deadline private treaty close at 4pm on Wednesday 4 April, unless sold prior.
Read more: Parnell property market resurgent
Anchored by Italian eatery La Porchetta and international travel agency House of Travel, the property comprises two character buildings on an 860sq m site spanning two freehold titles.
Parnell commercial real estate specialist David Burley, who is marketing the property with Colliers International colleagues Peter Herdson and Paul Dyson, says it would be hard to find a more appealing location.
“Parnell is one of the most well-established suburbs in Auckland, offering a unique village atmosphere right on the doorstep of Auckland’s CBD,” Burley says.
“The suburb’s appealing mix of residential, retail and commercial premises have made it a sought-after location to live, work, shop, drink and dine.
“City fringe locations like Parnell have also benefitted greatly from low office and retail vacancy rates in the CBD.
“As a result, Parnell has undergone somewhat of a commercial renaissance, with several trendy new retailers and restaurants opening up shop in the area.
“Interest in Parnell is also being driven by the newly opened Parnell Train Station, which has been a game changer for the area’s residents and employees.
“Together, these factors have pushed demand for mixed-use retail and office space in Parnell to an all-time high.
“An example of this is Mansons TCLM’s soon to be completed 10,000sq m, 5-star green office development in adjacent St Georges Bay Road.
“Corporate tenants of this building include Xero, Harrison Grierson and Asahi, all of which have committed to long-term leases.”
Herdson says the property comprises four ground floor retail tenancies, two first floor office tenancies and 16 off-street car parks.
“This tidy split-risk investment is currently 95 per cent leased with a 12-month vendor underwrite on the vacant retail tenancy, making it an excellent add-value opportunity.
“Developers will also appreciate the long-term potential of the property’s generous Business Local Centre zoning, which allows for development of up to 13m in height.
“Substantial city fringe landholdings are scarce, making this a rare opportunity to invest in a large rectangular-shaped, gently sloping site in a well-established Parnell Road location.”
The property is highly accessible due to excellent proximity to Northern, Southern and Northwestern motorway junctions.
It is also in the immediate vicinity of the recently opened Parnell Train Station, as well as Link buses, walkways and bike paths.
Herdson says Parnell is set to benefit from the Waitematā Local Board’s planned investment in public amenity upgrades in the area.
“The board has been working with the community and the Parnell Business Association to develop a Parnell Precinct Plan, which will go out for consultation this year.
“It is also planning to fund upgrades to lower St Georges Bay Road and improved linkages to the Parnell Train Station and Auckland Domain.”
Dyson says both of the property’s anchor tenants boast long trading histories in Parnell.
“House of Travel is one of Australasia’s leading travel companies, employing close to 2,000 staff across a number of brands.
“Its New Zealand business has 75 retail travel stores, including the Parnell premises, which it has occupied for 12 years and has recently significantly renovated with a new fit out.”
Dyson says La Porchetta is an institution of the Parnell dining scene.
“Founded in Melbourne in 1985, La Porchetta has since expanded to some 40 premises across Australia and New Zealand.
“The Parnell restaurant was the first to open in New Zealand, and remains a popular destination for diners seeking authentic Italian cuisine in a casual environment.”
The property’s other tenants include quantity surveyors Project Economics and Bentleys Drycleaners, as well as two billboard leases.
It currently returns a net market income of $582,309 per annum.
Built in the early 1900s, 157-165 Parnell Road comprises a three-level building of mainly brick, concrete and plaster construction, offering a floor area of about 1,220sq m plus veranda.
The property at 167-171 Parnell Road comprises a roughly 100-year-old timber and weatherboard building of about 394sq m that has been altered and refurbished over time.
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