A new street-level retail complex is for sale in Wynyard Central, a development by Willis Bond & Co, encompassing the ground commercial levels of three buildings in Auckland's rapidly expanding waterfront Wynyard Quarter.
The three buildings are within a block bordered by Daldy St, Pakenham Sts, Tīramarama Way and Mahuru Lane and comprise: the five-level Pavilions, the three-level Townhouses and 10-level Wynyard Central Apartments.
The 12-unit retail offering is featured in Bayleys' latest Total Property magazine and comprises 753sq m of commercial space at the base of the three buildings.
Retail units range in size from 28sq m to 159sq m with all the units having street frontages onto Pakenham St and Daldy St, or opening out onto the laneway-styled pedestrian routes of Tīramarama Way and Mahuru Lane.
Tenants already occupying units within the Wynyard Central complex include:
• licensed restaurant Williams Eatery, occupying 159sq m on a nine-year lease;
• French-themed patisserie and cafe La Petite Fourchette, with 126sq m on an eight-year lease;
• high-end wine retailer Wine Runners, with 80sq m of space on a six-year lease;
• real estate agency Barfoot & Thompson, with 52sq m of space on a nine-year lease; and
• men's grooming salon the Boar & Blade, leasing 28sq m for an eight-year term.
"The retail units in Wynyard Central are projected to deliver net annual rent of $457,500," says Ryan Johnson of Bayleys Auckland who, with fellow national director Chris Beasleigh, is marketing the ground floor retail levels for sale by tender closing at 4pm on Wednesday October 24.
Johnson says the 128-year ground lease on Wynyard Central has been pre-paid from December 2015 - meaning the pricing of the property is viewed from a freehold basis.
"In addition to sitting underneath 113 high-end apartments, Wynyard Central is also flanked by the 132-unit Halsey residential development to the east, and the 30 Madden apartment complex to the west," he says.
"The greater Wynyard Quarter is a hive of activity and growth at present – both from a commercial real estate perspective and a residential standpoint. It's the biggest mixed-use development of its kind in central Auckland.
"The ethos behind establishing a retail hub in this part of the city-fringe is to jointly sustain the day-to-day shopping needs of residents living in the apartments immediately above and around Wynyard Central, and to service the requirements of the substantial professional-based workforce within a 600 metre radius.
"Convenience is a key-word for apartment dwellers moving into the locale; and the growing number of workers coming into the Wynyard Quarter vicinity also require the convenience of being able to shop during lunch times, or immediately after work before commuting home on public transport.
"The nearest other options for lunchtime shopping are quite some distance away – across Victoria Park, on College Hill, or in the downtown central business district.
"We envisage that retailers operating in the Wynyard Quarter will develop a niche market focused on offering premium products and services that will appeal to the high socio-economic demographic group of residents moving into the area.
"Add to that, population growth from two independent sectors, and the area is set for a very positive sustainable future. That's before we even start factoring the economic benefits of the America's Cup coming to the nearby Wynyard Wharf," Johnson says.
Beasleigh says there had been a significant amount of institutional investment and activity in Wynyard Quarter this year including:
• the $635 million purchase by North American-based equity management fund Blackstone of the office blocks housing KPMG, Auckland Transport, Microsoft, H.P.[Hewlett Packard], Fonterra, Bayleys and Datacom;
• Panuku Development Auckland's overseeing the master-planned development of the entire area stretching back from the hospitality hub overlooking Wynyard Wharf;
• the construction and scheduled opening next year of the $200 million 195-room Park Hyatt Hotel some 200m away from Wynyard Central.
He says most of the land encompassing the Wynyard Quarter is owned by Auckland City Council's property development agency, Panuku Development Auckland; and he believes Wynyard Central is the first Central Auckland mixed-use retail hub of this size and diversity to be offered for sale.
"From an investment perspective, buyers into Wynyard Central can take confidence in a broad variation in tenant types and also unit sizes.
"The attractiveness of the retail tenancy leases within Wynyard Central is also underpinned by the fact that tenants have fixed annual rent increases written into the agreements," Beasleigh says.