A large Mt Wellington site which is one of the last commercial properties in the successful Lunn Ave precinct that has not been converted to retail use is now being offered for sale.
The property at 174B Marua Rd offers buyers an income-generating investment with significant future redevelopment potential, says Charlie Oscroft of Colliers International who, with colleague John Green, is marketing it for sale by deadline private treaty closing on October 10 unless it sells earlier.
The freehold property, occupied by Trans Pacific Industries (formerly Waste Management), is a rear section in the centre of the retail strip, between New World and Mitre 10 Mega, and is accessed via a right of way from Marua Rd.
"Apart from the parcel of land owned by The Warehouse at the north-western end of Lunn Ave, this property is one of the last along this popular stretch of road which has not yet been upgraded and re-purposed for retail developments," Oscroft says.
"With a strong income stream of $136,440 net a year, the property is a solid medium-term investment with obvious potential to add value in the future. We expect it to appeal to land bankers and investors looking for an income-generating holding with significant development potential.
"With the fast pace of retail development along Lunn Ave in recent years, this property clearly has good long-term value prospects."
Green says Trans Pacific Industries' lease expires in February, but it has the right to renew for two further terms of three years each. The business has occupied the property since 1999.
"During the time Trans Pacific has operated from this property, Lunn Ave has been transformed from industrial and warehousing uses into a major retail destination. This is one of the few remaining industrial properties in the precinct, with good access, suitable for conversion to retail."
The 4753sq m property has a 937sq m building on site housing a workshop and amenities, with a 2807sq m yard.
Green says the Lunn Ave retail precinct has intensified rapidly from its former industrial use to become a thriving retail hub.
"In 2007 the area was a blank canvas with nothing but bare land. Now it is home to a range of retailers, from large-format through to small convenience shops.
These retailers have all recognised the benefits of being in this area, with Lunn Ave being close to the large neighbouring residential catchment covering Remuera, Meadowbank and the Stonefields subdivision which is opposite. Lunn Ave also offers the attraction of having large volumes of passing traffic."
Green says investment sales in the precinct have achieved strong yields, one notable example being the sale of the Farro Fresh property and associated retail units in the strip extending to ASB Bank, which sold through Colliers last year for $12.8 million at a yield of about 7 per cent.