Hills Floorings' former showroom and warehouse in Otahuhu is being marketed for sale by auction next month as offering multiple options for a new owner including development into retail tenancies.
The complex at 28-32 Atkinson Ave and 25 Princes St is featured in Colliers International's latest New Zealand Portfolio magazine and will be auctioned at 11am on October 10 at the agency's office at 151 Queen St, Auckland, unless it sells before that date.
Jolyon Thomson, who is marketing the property with colleague Andrew Hooper, says the well known property with a floor area of 2135sq m is an ideal candidate for redevelopment into a complex of smaller retail units, building a multi-level project or continuing its use as a showroom, office and warehouse.
"There are several options for a new owner here but the obvious one is conversion into a multi-unit retail development that could take advantage of the property's location on a busy arterial route in a well established commercial and retail location," Thomson says.
"The council's draft Unitary Plan offers further flexibility for this mixed use site such as the possibility of building upwards to incorporate more offices as well as retail."
The auction offering also includes a tenanted investment property next door, occupied by a fishing tackle retailer returning $43,000 a year.
Thomson says the main building, at 28-32 Atkinson Ave, is on a 3819sq m site with dual road access from Princes St and Atkinson Ave. "Traffic count passing this property is over 10,000 vehicles daily," he says.
The smaller investment property, at 25 Princes St, is a 574sq m building on a 632sq m site. Hooper says both buildings along with a large carpark and yard are spread across five separate titles, but are for sale as one parcel giving future flexibility to the new owner.
"The multi-titled property gives the owner the opportunity to adjust the individual boundaries creating smaller titled parcels that could be sold later." Hooper also expects to receive interest from owner occupiers looking for large format showroom, office and warehouse space in a cost effective and busy retail location.
"Owner occupiers purchasing this property will benefit from the options provided by the property's low site coverage, ample parking and extra income from the investment property. The building footprint only covers 42 per cent of the site, allowing plenty of space for customer parking, truck movements or container storage."
Thomson says the main building's large, open internal layout makes it ideal for owner occupier retailers requiring flexible space with efficient storage, within regular shaped warehouse and showroom areas.
"With low borrowing rates available at the moment, we're seeing a notable increase in tenants looking to buy and modify existing properties to suit their own requirements," he says.
John Bowring, Colliers International's national auction manager, says the property's location on a busy arterial road, with excellent street profile, should draw interest in the auction room from businesses looking to move.
"It's a winning formula for occupiers."
Hooper says Otahuhu's central location, combined with its excellent motorway access and its status as one of the most cost-effective locations in Auckland, means the area has been growing in popularity.