An underutilised building on a prominent corner site on Great South Rd in Penrose will be transformed into multi-unit retail, showroom and office premises and is being offered for lease by Jones Lang LaSalle.
The agency's head of industrial sales and leasing Sam Smith, industrial broker Ben Pilley and managing director Nick Hargreaves, sold the building after a comprehensive campaign.
The 6454sq m site at 531 Great South Rd, on the corner with Station and Walls Rds, was recently bought by Auckland investor Charcoal which will renovate it and then lease it.
"The refurbishment will include the removal of part of the front of the building which will create another 20 car parks for customer use," says Smith who is marketing the property for lease with Pilley.
"The building will be given a new frontage which will consist of 3.5m floor-to-ceiling windows with Alucabond facade and first floor office windows."
Smith says 375sq m of retail/showroom space will initially be created with optional first floor office space up to 350sq m. "It's a good time for redevelopment as there is a lack of quality rental stock currently on the market," he says. "Commercial property owners are receiving a substantially positive return on their purchasers and are able lock in these returns by fixing low interest rates from three to seven years."
Smith say there has not been a significant amount of redevelopment in Penrose for some time.
"The demographics are strong for businesses considering the area and the rents are very competitive."
Hargreaves says the premises, which were in receivership, were built in the 1980s and a redevelopment of the property to extract further value was the smart option.
"We fielded a lot of interest on this property. The premises required an experienced and proactive developer to inject capital for redevelopment purposes and we are confident that a renewed focus, with a quality upgrade including improved accessibility and car parking, will provide a profitable outcome."
Pilley says the new premises provide an exceptional opportunity for businesses to relocate to Great South Rd. "About 20,000 cars pass daily along Great South Rd, and with 100m of road frontage, this property is highly visible. The premises are in a sweet spot for a boutique retail/showroom, offering a high profile site to showcase products and a company's brand. We are expecting inquiries from a variety of businesses including banks and suppliers of plumbing, bathroom, hardware, tile and similar products."
Pilley says property is on a prominent site and is situated near the Ellerslie-Panmure Highway with easy access to State Highway 1 and only 8km from the CBD.
"The property also benefits from dual access with the property boundary running from Great South Rd to Walls Rd."
Jones Lang LaSalle's research shows there was a slight increase in trade retail/showroom warehouse rents over the beginning of 2012. Across Auckland's outer suburban areas net effective rents range between $200 and $300 a sq m.