Classy retail office hub ready to forge ahead

The site at 40 Smales Rd, East Tamaki, has already undergone $2.3 million of site works. Photo / Supplied

Resource consents are in place for a retail and office development with $2.3 million of civil site works already undertaken on a 1.4ha freehold site at 40 Smales Rd, East Tamaki, but now the property is the subject of a mortgagee sale.

"This high-profile development site is ideally located in arguably New Zealand's premium industrial and commercial precinct," says Greg Goldfinch, of Colliers International, who is marketing it with colleague Paul Higgins for Veda Capital.

Offers by deadline private treaty close at 4pm on Friday, April 9.

"This a development opportunity with considerable potential in one of Auckland's fastest growing industrial, commercial and residential areas where a lot of the hard work has been done on a property that is ripe for a buyer to take it to the next level."

Goldfinch says it will appeal to land bankers, owner occupiers, developers and high net worth individuals.

Higgins says the area has not seen a lot of spec developments in the area, so few mortgagee sales are on offer in this market.

"A buyer could land bank this property in a quality location or for an owner/occupier could develop the site making the most of the work that has been done and the options available presented by the consents."

Higgins says the proposed development "has all the attributes of a classy retail/office hub and has been well designed with multiple access points, including separate car and truck access".

"In addition to the money spent on civil works, about $735,000 worth of council development contributions has also been paid."

As part of the original development plan, a Mobil service station has already been constructed along the road frontage. The proposed development for the front of the site also included two fast food restaurants and a retail complex with provision for further restaurant tenancies.

Also planned across the rear of the site were two further buildings to provide ground floor retail with first floor office space and cafes, a tavern and basement parking.

Preliminary construction work has begun on what was known as Building C, which extends across two-thirds of the rear of the site to incorporate basement parking, commercial tenancies and a restaurant/tavern at ground level plus first-floor office space.

"It was proposed that the eastern end of this building would provide for a bar, restaurant and tavern tenancy which will incorporate the ground floor bar and restaurant area, with a mezzanine floor leading on to an exterior balcony," says Higgins, who points out that buyers will not be constrained by the development that has been planned.

"Sufficient flexibility remains to pursue other options on the site under its Business 5 Mixed zoning."

Goldfinch says permitted activities in the zone include industry, offices, bars, cafes and warehousing.

"This is a prime location, with a conservative estimate of more than 20,000 passing cars every day," says Goldfinch. "Smales Road is the main arterial linking State Highway 1 with the popular eastern suburbs. It is now the main traffic thoroughfare from the rapidly developing residential areas of Botany through to the industrial area in East Tamaki along Highbrook Drive and to the SH1 Highbrook junction.

"Botany is one of the fastest growing residential areas. As it is still a young area, there are not many amenities, so there is quite a call for new bars and retail to support it."

Goldfinch says there is strong interest from potential tenants for the site. "Pub, liquor store and convenience store operators have all expressed interest in coming here, as the site is high-profile and the surrounding catchment is large and growing."