Wills says the property is being sold so Pi Capital Investments can use the funds for other projects.
Pi Capital bought the property more than five years ago from an Auckland investor and spent $15 million adding a 4400sq m four-level office extension with three levels of carparking for 137 vehicles.
At the same time, the group spent $1 million on fully refurbishing the common areas and services of the existing building.
The then-North Shore City Council consolidated all its divisions into the one property, spending $2 million on a new fit-out and leasing all the commercial space in the building.
Included in the new extension were a number of sustainable initiatives, including rainwater harvesting, energy-saving heating and ventilation, light fittings and controls, all of which gave the addition four-star green design-and-built sustainability ratings from the Green Building Council.
After adding substantial value to the existing property, Pi Capital Investments negotiated an initial 12-year lease with the council until November 2021 and two three-year rights of renewal, while the leases on the shops wrapping around the corner of The Strand are of varying lengths. Binning says the extension enhanced the already impressive connection between the building and sea.
"There are stunning views of the city and sea from the building. Landlords overseas would pay mega dollars for a similar site if they could find one like this that offers access to the beach, a range of cafes, bars and high-end shopping and a sought-after lifestyle."
Binning says there is also the possibility of building about another 1000sq m of office accommodation on to the council-leased building.
He expects strong interest in the sale of the property, with Takapuna becoming a focus for high-profile investors like Sir Robert Jones.
"There are two main categories of investors - those seeking passive, well-let properties and those who understand the fundamentals of good property and want aggressive value-add opportunities. Office property fits the sweet spot for tenacious investors," he says.
"Takapuna is undergoing a renaissance, particularly with retail having a pulse again and rising from the ashes of the recession through several planned new multi-million projects."
Jones Lang LaSalle's head of research, Chris Dibble, says Takapuna's retail sector turnaround is providing confidence for owners of commercial property hit by a lack of tenancy demand over the past few years, when office vacancy rates soared to more than 15 per cent.
"Vacancy levels have consolidated this year to 10.3 per cent, showing businesses still regard Takapuna as a prime suburban business hub," he says.
"With the amount of prime stock within Auckland CBD expected to tighten as business confidence and economic conditions improve, there will be a flow-on effect to Takapuna."
Dibble says rental growth will be helped by the extensive refurbishment expected at 129 Hurstmere Rd, which was recently bought for about $18 million by Sir Robert, and 2-4 Fred Thomas Drive, acquired by the Smale family.
"Once these buildings have undergone refurbishment, it is likely rental levels will rise because of the higher quality of space. This will lift the overall quality of office space around the Takapuna area and the rents landlords can demand."
