Multiple options for hidden Mt Eden gem a stone's throw from CBD

By Colin Taylor

The anchor tenant at 14 Akepiro St, Mt Eden, is well-established and highly regarded.
The anchor tenant at 14 Akepiro St, Mt Eden, is well-established and highly regarded.

colliers.co.nz/22628

A Mt Eden mixed-use investment property that is fully occupied by six separate tenants is being marketed for sale as having "genuine upside" in a sought-after city fringe location close to Auckland's bustling central business district.

"With its split-risk investment characteristics and mixed-use zoning offering a number of future options, the property at 14 Akepiro St, Mt Eden, is a hidden gem," says Peter Kermode of Colliers International.

Along with colleagues Shoneet Chand and Matt Prentice, Kermode is selling it by deadline private treaty closing on December 12, 2013, unless it sells before the deadline.

The anchor tenant in the substantial three-level building is contemporary dance company the Black Grace Trust. The company receives Auckland Council funding and is a well-established and highly regarded organisation, Kermode says.

The Black Grace Trust occupies nearly 600sq m of floor space, including a large warehouse/dance studio, upstairs office and manager's apartment and four car parks.

Four small ground-floor tenancies of between 95sq m and 244sq m are occupied by various workshop and business service tenants. A 96sq m residential apartment on the top floor completes the tenancy mix in the 1269sq m building.

"With a strong anchor tenant alongside a good mix of smaller occupiers contributing to the property's net annual rent of $166,730, as an investment this property already offers a substantial, split-risk income stream," Kermode says. "However, there is also potential to increase the rent roll in the future through effective lease management and future redevelopment."

Although the property is unit titled, favourable body corporate rule wording means the owner will still have redevelopment rights, he says.

Colliers' agents expect the property to appeal to buyers looking for investment property with areas they can allocate for their own use while still retaining an income stream - for example, investors who also require a small workshop or storage space, or investors who would like to live in the top-floor apartment.

Developers are another key potential buyer group, says Kermode. "The property lends itself well to add-value buyers such as developers, who could capitalise on the area's flexible zoning and convert it to a residential, live-work or showroom development as a long-term option.

Permitted activities under the property's mixed-use zoning include light manufacturing, warehousing, residential and retail.

The building is located at the end of a cul-de-sac and has a northerly aspect benefiting the upstairs apartment, Kermode says.

Although it is next to railway lines, these are set down a cutting which reduces noise and are due to be electrified soon.

"The electrification of the railway line which runs in front of the property will result in lower noise levels in the street. Akepiro St is already a fairly quiet back street and will become quieter with the railway electrification project, due to be completed by the end of this year, which is a real plus for occupiers in the street."

Two of the site's key neighbouring occupiers include auction house Dunbar Sloane and the James Dunlop Textiles showroom.

Kermode says the demand for city-fringe property from both buyers and occupiers is increasing, with a marked increase in the popularity of commercial properties in Auckland's inner ring of city centre suburbs over the past year. "There is no shortage of demand for commercial properties in good locations from owner occupiers, investors, developers and tenants, and as such we expect this property to attract a lot of interest from potential buyers."

The increased demand for city fringe warehouse space is now resulting in supply constraints beginning to appear, he adds.

"There are few opportunities to increase the supply of city fringe commercial properties to meet the demand, so properties like this ... tend to get snapped up."

- NZ Herald

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