High exposure with redevelopment potential and excellent holding income
A wide-frontage property with high traffic flow of some 25,000 vehicles per day, favourable zoning to redevelop or add value, and six income streams has come to the market for sale.
The 1,920sq m property is on a high-profile corner site situated at 163-169 Lake Road, in the affluent Auckland area between Takapuna and Devonport.
The underlying land is zoned Business Local Centre and Business Mixed Use, allowing a new owner to redevelop the site with many options available including a mix of commercial, retail and residential.
The property comprises four standalone buildings with a combined lettable area of 682.7sq m over two freehold titles.
It enjoys multiple holding income streams from four commercial and two residential tenants, returning some $206,900 plus GST in net annual rent.
Colliers International North Shore Directors Shoneet Chand, Matt Prentice and Euan Stratton have been exclusively appointed to market the property for sale by way of deadline private treaty.
Offers close at 4pm on Wednesday 27 November 2019, unless it is sold earlier.
Chand says the property makes an astute purchase for investors, land bankers, developers and occupiers.
“This property is one of the largest privately owned land parcels on the peninsula and is significantly underdeveloped, giving it enormous future potential,” he says.
“The site is ideally suited to a mixed-use redevelopment that would make the most of its intensive zoning and high-profile location.
“It is superbly positioned on Lake Road, which is the main route between the bustling metropolitan centre of Takapuna and the popular beachfront suburb of Devonport.
“The prime corner site boasts more than 77m of road frontage, ensuring excellent exposure to a high traffic count of more than 25,000 vehicles passing daily.”
Prentice says the property is well located close to North Shore beaches, cafes, bars, restaurants, a movie theatre, gyms and the Shore City shopping centre.
“The surrounding area of Belmont and Bayswater is primarily an affluent residential neighbourhood with excellent public transport, two ferry options to the city at Devonport and Bayswater and good motorway access.
“Add-value properties of this size rarely come to the open market in such a prime, tightly held location, making this a particularly astute buy.”
Stratton says the property’s zoning allows mixed-use development of up to 18m in height.
“Intensification and demographic changes continue to create growth in the surrounding area, supporting the case for future redevelopment of this site.”
The majority of the leases expire within a year. The tenants have indicated that they are keen to stay and extend or enter into new leases. This gives options to a new owner if longer development planning time is required, or a longer holding income is the requisite.
The building at 163 Lake Road comprises a 120sq m character dwelling that was converted into an office in 2006 and has up to 10 car parks in front.
It provides three offices, a boardroom or office, reception area, kitchen and lunchroom, bathroom, and storage or filing room.
The building is constructed of concrete and brick with a solid plaster finish and features native tongue and groove wooden floors, plaster/batten ceilings and a corrugated iron roof.
It is tenanted by Thread Room, which offers sewing classes and workshops to people with a range of ages and abilities.
Directly behind Thread Room is 163A and 163B Lake Road – a residential property that was purpose-built in 2003 and comprises two units with a combined area of 226sq m.
The top floor is a three-bedroom, two-bathroom unit with a sunny deck, superb views of the harbour to the west and a double garage with internal access.
The ground floor is a two-bedroom, one-bathroom unit with outside parking for two cars and a patio leading to private, fully fenced grounds.
Stratton says: “These units are rarely vacant and the tenancies are highly sought after due to close proximity to excellent schools, good public transport, the ample off-street parking and local shops and amenities.”
Next door at 165 Lake Road is a 117sq m character dwelling that was converted to commercial use in 2006 and refurbished to a high standard with four car parks at the front. It is occupied by pregnancy spa and wellness centre Bella Mama.
The property comprises a reception area, management office and three consulting rooms, all with vanity hand-wash basins and one with a shower. The building also has a quality bathroom, separate toilet facilities, a kitchen and laundry.
Construction is weatherboard, predominantly tongue and groove wooden floors, plaster/batten ceilings and a corrugated iron roof.
The property at 167-169 Lake Road comprises two retail shops with prime frontage onto Lake Road.
The building was constructed in the 1960s and is predominantly of concrete block and brick construction, with concrete floors and a corrugated iron roof.
The corner tenant is a fruit shop with a gross floor area of 161.5sq m, four car parks and loading dock, while the second tenant is Hell Pizza with a gross floor area of 58.2sq m and one car park.
The fruit shop has occupied the site since the 1960s, while the Hell Pizza tenancy underwent a complete refurbishment in 2005 including polished concrete floors and a new front facade with bi-fold windows.
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