The toast of Takapuna on the market
Takapuna’s award-winning Fortieth & Hurstmere dining laneway is on the market for the first time, presenting an unparalleled opportunity to invest in the premier hospitality asset on Auckland’s North Shore.
Located at the heart of Takapuna’s bustling metropolitan centre, the vibrant retail complex at 40 Hurstmere Road provides an exceptional dining experience, with a varied yet complementary range of offerings from a carefully selected stable of quality tenants.
The centrepiece of the architecturally designed property is a Melbourne-inspired laneway, set between two reimagined commercial buildings that have been refurbished to sublime effect.
The complex makes extensive use of industrial materials and heritage cues including recycled brick, raw concrete, grey cobbled paving, black aluminium joinery, timber rafters, wrought-iron security gates and decorative screens.
Striking design features include living walls, a new facade that reinterprets both Art Deco and Victorian references, and a raised central courtyard with a retractable roof for all-weather outdoor dining.
Colliers International North Shore directors Euan Stratton and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty.
Offers close at 4pm on Wednesday 3 April and the property will not be sold prior.
“Never before has a hospitality asset of this calibre been offered to the open market on the North Shore,” says Stratton.
“The vendor has invested a substantial amount of time, capital and passion into this premium property but is now moving on to the next project.
“This has created an extraordinary opportunity to acquire your very own Melbourne-inspired laneway in the heart of Takapuna with growth potential.
“Fortieth & Hurstmere provides 12 separate income streams from nine ground-floor retail tenancies and three first-floor office tenancies.
“The property comprises a 1,495sq m mixed-use complex on a 1,569sq m freehold title with Business Metropolitan Centre zoning, which provides for intensive redevelopment options in the longer term.
“It is superbly positioned on Takapuna’s main retail strip, only 130 meters from the main intersection of Lake Road and Hurstmere Road.
“This location is set to benefit greatly from Auckland Council’s significant investment in Takapuna’s transformation, which includes plans for a revitalised Hurstmere Road streetscape.
“With its quality mix of tenants, outstanding location, steady split-risk income stream and architecturally stunning design, Fortieth & Hurstmere makes for a true trophy investment with exceptional fundamentals.”
Stratton says the property was initially an unprepossessing, two-level commercial building from the 1960s, occupied for many years by a bank, with a large ground floor retail space and first floor offices.
In 2015 the vendor engaged architects McKinney+Windeatt to substantially refurbish the building, transforming it into what is now Fortieth & Hurstmere.
The project won the Retail and Hospitality Award at the 2016 New Zealand Architecture Awards, with the judges describing it as “a small essay in urban design”.
“From nothing, the architect has produced a result that’s quite something,” the judges commented.
“The scale is sympathetic, the materials are well-chosen and various, and the laneway spaces, including a small courtyard, work well.”
Prentice says the refurbishment involved removing part of the original shopfront and excavating the site to create the vibrant internal laneway, lined with cafes and eateries, as well as the raised courtyard.
“The old roof was replaced with long-run iron and a new steel pergola structure was added at the rear for additional outdoor dining.
“The laneway tenancies differ in shape, size and layout, but all enjoy full-height glazed shop frontages with retracting canopies, exposed industrial-type ceilings and polished concrete floors.”
In 2010 the vendor purchased 48-50 Hurstmere Road, which became vacant in 2018, and subsequently refurbished it to the same high standard. This is now incorporated into the development.
Prentice says the laneway provides access from the Anzac Street car park at the rear of the property to the Hurstmere Street frontage.
“The north-facing rear tenancies at the car park end enjoy afternoon sun, something missing from other Takapuna hospitality offerings.
“Each of the eateries also benefits from outdoor seating, either in the laneway, the common courtyard with retracting roof, or the fully covered rear courtyard.
“Stylishly appointed customer toilets are located at the rear of the laneway for patrons of all tenancies to access.”
Two first-floor office tenancies, directly above the laneway, are accessed from a stairway off Hurstmere Road. These share toilet facilities but have their own kitchens.
A third office, accessed from a stairway at the rear of the building, is cantilevered over the car parks. It has a well-appointed kitchen plus male and female toilets and shower.
The tenanted retail spaces, which range in size from 46sq m to 188sq m, are leased to Bird on a Wire, Dante's Pizza, El Humero, Otto's, Double Dutch Fries, Poke Poke and Burger Burger, which occupies the sunny rear tenancy.
The two newly completed retail tenancies, of 147sq m and 171sq m each, are vendor underwritten, providing an opportunity for a new owner to add value by expanding the retail mix.
The office tenancies, of between 193sq m and 204sq m, are leased by Cooper and Co, Reset Urban Design and Cirkus Productions.
All 12 tenancies return a potential net annual income of $755,994, including the vendor underwrite.
Rental reviews are every one or two years, either to market or indexed to inflation, with or without fixed percentage increases and locked-in rental growth.
The final lease expiry dates are staggered between March 2021 and June 2035, offering stability of income over the long term.
Stratton says Takapuna has been identified by Auckland Council as one of the city’s key metropolitan centres for growth and development.
“There’s never been a better time to buy in Takapuna, which is set to grow by an estimated 15,000 residents and 15,000 employees by 2040.
“To accommodate this growth, Auckland Council has committed to a significant programme of urban regeneration, including substantial upgrades to Hurstmere Road.
“This will transform Hurstmere Road into a one-way street between Anzac Street and Lake Road, with a cycle lane and redesigned streetscape that prioritises space for people.”
Prentice says the property for sale is directly opposite the popular Hurstmere Green, which is a pleasant open space where people can relax in as well as directly accessing Takapuna Beach.
It is also directly next door to the council-owned property at 38 Hurstmere Road, which was recently cleared, giving the property even greater profile to both pedestrian and vehicle traffic.
“An opportunity exists for a new owner to continue talks with council about opening Fortieth & Hurstmere to the newly created open space, with some concept plans available on request.”
Takapuna is both an affluent residential suburb and the North Shore’s premier commercial centre, providing shopping, recreation, housing and employment in a beachfront setting only 9km from Auckland’s CBD.
A massive influx of residential development has recently transformed the Takapuna skyline, with a number of apartment buildings between four to six levels either completed or under construction.
The property’s Business Metropolitan Centre zoning is second only to the city centre in overall scale and intensity.
Prentice says this zone allows for a wide range of activities including commercial, leisure, high-density residential, tourist, cultural, community and civic services.
“So when the time is right there is potential for an eight-level retail, commercial and residential redevelopment, completing an intergenerational asset and income.”
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