Papakura property has plenty upside potential

The large commercial building for sale at 4-6 Averill St, Papakura.

A large Papakura CBD commercial building with multiple income streams from several retail tenants and with significant reconfiguration or redevelopment potential has come onto the market as part of Bayleys' latest Total Property portfolio.

"This property represents a huge opportunity to add value," says Peter Migounoff of Bayleys South Auckland who, with colleague Piyush Kumar, is marketing 4-6 Averill St for sale by deadline private treaty closing on Thursday October 29.

Built in the 1980s, the property comprises a net lettable building area of 2549 sq m on a large freehold site of 3124 sq m. The single-level building occupies the entire site and a car park on the roof has space for around 140 cars

"Ground floor retail shops and services generate a good annual income of over $220,000," Migounoff says. "The property is 90 per cent occupied and divided into seven tenancies but this configuration could be refined to achieve a better use of the space and increase the rental income. Further development upside could be achieved by potentially adding about 40 apartments above the rooftop car park."

Tenants are a TAB, Dental Services, Physio Sports, Thai restaurant Wild Orchid, Le Kandy Bakery and Ray's Gym on terms ranging from three to six years. An area of 180 sq m is vacant with a new lease being negotiated.

Kumar says the property is currently zoned Urban Commercial 3 and has a Metropolitan Urban zoning under the Proposed Auckland Unitary Plan which has a maximum height limit of 21 metres.

"This permits a wide range of activities including commercial, leisure, high-density residential, tourist, cultural, community and civic services. Of interest in relation to potential future redevelopment of 4-6 Averill St is the proposed zoning's support of an intense level of development - including allowing for high-rise buildings."

Kumar says the building has a seismic assessment of 70 per cent of New Building Standard (NBS) and is only metres from the Papakura train and bus station which has direct routes to the Auckland CBD. The property lies off the northern side of Averill Street, midway between Great SouthRd to the west and Railway Street West to the east.

Migounoff says Averill Street is a short link road and carries a reasonable volume of traffic. "The property is well located within the Papakura town centre and is directly opposite a Countdown supermarket, Noel Leeming, No.1 Shoe Warehouse and several other large bulk retail centres. Even though the building occupies a rear site it has a good frontage to Averill Street and easy vehicle access at the rear to its large roof top car park.

"It also links directly with the original Selwyn Centre Arcade which has pedestrian access off Great South Rd."

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