An award-winning retail laneway in central Takapuna is being presented to the market, offering prospective purchasers the opportunity to obtain a premium-grade asset with significant rental income and long-term growth potential.
Eat Street is home to multiple tenants, including well-known brands Burger Burger, Caci Clinic, Bird on a Wire, and many more. The property provides a total net lettable area of 1,750sq m across 1,371sq m of building area.
The total net rental income for the property, which is located at 40 Hurstmere Road, is $758,524 plus GST and operating expenses per annum. Many of the tenants are signed to long-term leases, well into next decade. The 1,569sq m site is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan.
Designed by one of Auckland’s most highly regarded architects, Jack McKinney, the property has won multiple New Zealand Architecture Awards and enjoys outstanding street exposure on a high-profile corner site that is a major thoroughfare and sits approximately 250m away from Takapuna Beach and Hurstmere Green.
The building provides 13 individual income streams and tenancies range in size from 65sq m to 265sq m, which is a site occupied by popular local chain Burger Burger.
Chand, Director of Investment Sales at Colliers, says the property provides a strong tenant covenant for buyers.
“This is one of the most compelling split-risk investments that will be brought to the market on the North Shore this year given the eye-catching design where no expense was spared,” Chand says.
“The property represents an unmatched purchasing opportunity with outstanding income growth potential given the long-term leases in place with favourable terms that include multiple rental reviews in the future. The site is professionally managed, which could continue for the new owner if appropriate.”
While offering security for buyers through the diverse mix of tenancies, Chand says the building is also visually stunning and is a key part of the ongoing transformation of central Takapuna that is incredibly pedestrian friendly, leading to a large amount of foot traffic in the area.
“The vision of a Melbourne laneway was achieved by the use of recycled bricks, raw concrete, and a new facade that reinterprets both art deco and Victorian references,” Chand says.
“Further attention to detail was applied with the cobbled footpaths, extensive lighting, and a retractable roof in the courtyard.
“Auckland Council’s Takapuna Centre Plan, which has been designed to implement the work outlined in the Takapuna Strategic Framework, includes a focus on a refurbished streetscape of Hurstmere Road as a key driver of regenerating the surrounding area.”
Takapuna has also seen a major influx of residential development during the past few years with multi-level apartment complexes either completed or under construction, contributing to extensive population growth that will benefit retailers in the Takapuna town centre.
Prentice, Director of Sales and Leasing at Colliers, says the property also poses future development opportunities due to its zoning.
“The Business – Metropolitan Centre Zone applies to centres located in different subregional catchments of Auckland. These centres are second only to the city centre in overall scale and intensity and act as focal points for community interaction and commercial growth and development and contain hubs serving high frequency transport,” Prentice says.
“The zone provides for a wide range of activities, including commercial, leisure, high-density residential, tourist, cultural, community, and civic services with a maximum building height of up to 24.5m allowing for expansive growth if a new owner wanted to explore such an opportunity.”
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