A freehold commercial property is for sale in the heart of Papatoetoe’s town centre, presenting an opportunity to occupy, add value or redevelop in a rapidly renewing Auckland location.
The 615sq m offering at 149-151 and 153 Great South Road boasts favourable Business Town Centre zoning, allowing for a range of uses up to 18m.
It provides 425sq m of space across two single-level commercial buildings, located on a major arterial at the centre of Papatoetoe’s main retail strip.
One building is on a short monthly lease while the other is for sale with vacant possession, providing scope to unlock the property’s potential immediately.
Colliers has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 17 March, unless it is sold earlier.
“Papatoetoe is undergoing a surge of activity, led by Auckland regeneration agency Panuku and bolstered by private investment.
“Recent developments include a new supermarket, new civic space, the refurbishment of Papatoetoe Mall, and an upgrade to the town centre car park.
“Further activity is in the pipeline, with 2.5ha of underused council land set to be redeveloped to provide better amenities, new housing, attractive public spaces, and improved access to community services and facilities.
“The result will be a rejuvenated town centre that is an attractive place for people to live, shop, meet and enjoy themselves.
“The property for sale represents a superb opportunity to capitalise on Papatoetoe’s transformation now.
“While the property lends itself to a number of options, developers will be cognisant of the advantages that the vacant possession and flexibility of the existing lease provides. Further, the holding income provides time to scope out new opportunities for the Business Town Centre zoned property,” says Bakshi.
“Built in 1954 and known as the Kentucky Building, it comprises two retail tenancies that have since been combined to create a predominantly open plan retail space, with services at the rear.
“It is tenanted by musical instrument store Rhythm Rendezvous, which was founded in 1959 and has established a loyal customer base.
“The company has occupied the property for more than 50 years, and has been on a month by month lease since March 2019.
“The periodic tenancy will appeal to add-value investors or developers, who will be able to draw on $40,000 in net annual holding income until the time is right to reposition the property.”
Gibb says the property boasts 12m of frontage to Great South Road and vehicular access to the rear from Eric Baker Place, providing six car parks.
“With site coverage of only about 50 per cent, there is plenty of scope to add further value and capitalise on the favourable development overlays and excess land to the rear.
“A less intensive refurbishment could involve re-walling the building to create two separate tenancies.”
Gibb says the adjoining property at 153 Great South Road has been expanded over the years to provide a net lettable area of 200sq m on a 205sq m site.
“The fit out features a welcoming reception to Great South Road, numerous private offices, break out areas, a kitchen and bathrooms.
“Additional access is provided to the rear and side of the building, which opens to a gated walkway between Eric Baker Place and Great South Road.
“Available with vacant possession, the property has housed many professional service firms in the past such as a law firm, travel agency and doctors clinic.
“An owner-occupier could utilise the existing layout and fit out, while an investor could either lease it out as is, or add value through refurbishment. It can also be split into two tenancies to provide separate rental income streams.”
Papatoetoe is a traditional town centre with a strong heritage character that supports a diverse community, with significant capacity to accommodate further growth.
Bakshi also highlights how the property benefits from its location with key existing and new transport connections.
“State Highway 1 on-ramp is less than 1km away and the SH20 on-ramp is 4km away with new infrastructure nearing completion.
“Transport and infrastructure development includes Papatoetoe Train Station and the Puhinui Transport Interchange, which is set to open this year, providing a 10-minute rail link to Auckland International Airport.
“Residential growth is occurring throughout South Auckland, with significant new development taking place in Papatoetoe, Papakura and Takanini. There is also a sizeable number of other commercial intensification projects in the area that signals broader confidence in the area’s future prospects.
“The property for sale is thus well positioned to tap into and benefit from continued urban and commercial growth,” says Bakshi.