Big three-titled Takapuna commercial site

The property in three titles, near the intersection of Taharoto Rd and Karaka St, is indicated by red border lines. Photo / Supplied

A prime high-profile investment property close to the Takapuna CBD encompasses a substantial office building on a 15-year lease, plus additional buildings on shorter leases.

The freehold property in three titles, located near the intersection of Taharoto Rd and Karaka St, is fully leased to Waitemata District Health Board.

The property, which is being marketed by CBRE agents Brent McGregor, John Holmes and Deborah Dowling, is for sale by expressions of interest, closing at 4pm on March 21 - unless it issold earlier.

McGregor says the landmark office property is exceptional in having over 1ha of prime land; being underpinned by a long-term lease to a Government-backed public healthcare provider; and having various land development options in the near future.

The 15-year-lease over the main building incorporates fixed rental steps producing an attractive income growth profile. Car parks and buildings on the balance of the property are on a shorter four-year lease, ultimately suiting more intensive residential or commercial redevelopment in the medium term.

"A property of this size, quality and tenant covenant, when combined with its strong underlying land value and strategic location, represents an outstanding investment and development opportunity that will appeal to buyers in New Zealand and overseas," McGregor says.

The offering includes the following three buildings with a total net lettable area (NLA) of 5522sq m occupying a 10,619sq m site:

• The main building, Waimarie House is a five-level office building with 3606.29sq m of NLA.
• The second building, Health Alliance House has a total net lettable area of 1400.17sq m over two levels.
• The rear building consist of a single level office with a total net lettable area of 515.54sq m subdivided into eight units.

The buildings have NBS seismic ratings of 70 per cent and 80 per cent, while car parking is provided on-site for 248 cars, with multiple entry points.

Holmes says that the property offers stable long-term income underpinned by exceptional leases.

"These buildings are fully occupied by the Waitemata District Health Board, a Government-backed public healthcare provider, with a Weighted Average Lease Term of 10 years. The property earns over $2 million per annum with fixed annual rent growth at 2.5 per cent."

Employing more than 6800 people in more than 30 locations the health board provides hospital and community services to the Auckland region.

The predominantly Business Mixed Use-zoned site has a high land value component, which gives it future development potential, says Holmes.

"The rear portion of the site, in particular, presents significant redevelopment potential. To that end, advice has been sought with respect to potential subdivision of the existing land holding, and two potential subdivision options offer potential."

Dowling says that over recent years CBRE has seen office and retail demand in Takapuna outstrip supply, leaving vacancy rates at an all-time low.

"Takapuna is one of Auckland's most desirable suburban town centres and is effectively the main business hub for the North Shore."