A mix of high-end tenants occupies the site at the corner of Lake and Hurstmere Rds. Photo / Supplied
A prime, high-profile, retail corner block in the heart of Takapuna is up for sale as a single investment property, offering both income and future development potential.
Halls Corner, at the corner of Lake and Hurstmere Roads, has a mix of tenants on its 2327sq m site, including TSB Bank, AMI Insurance, House of Travel, Superette Takapuna and Madam Woo.
It is being marketed by Henry Thompson, of Whillans Realty Group and is to be sold by a tender process, closing at 4pm on August 28.
Thompson says Halls Corner is "an immaculate, trophy retail investment located in one of Auckland's wealthiest suburbs. Properties of this size and calibre in the heart of Takapuna are rarely available and are very tightly held."
The retail landmark has a Lake Rd frontage of about 72m, while the Hurstmere Rd frontage is about 68m.
"Takapuna has become one of Auckland's most sought-after lifestyle hubs. High street brands like Mecca Cosmetica, Lululemon Athletica, Bailey Nelson and Huffer are moving in, along with an exciting mix of new food and beverage outlets.
"This property is surrounded by national and international retail brands, banks and top-end bars and restaurants. It benefits from high vehicle and pedestrian counts," Thompson says.
The property is fully leased and earns $1.43m in annual rent from a diversified mix of established retail tenants with a weighted average lease term of 4.4 years. Most of the leases incorporate annual fixed and Consumer Price Index rent reviews, providing investors with built-in rental growth.
"Tenants here are high calibre and are well known," Thompson points out.
"Madam Woo is a fusion-style Malaysian restaurant which has been operating since 2015 and is run by award winning Kiwi Chef Josh Emett and restaurateur Fleur Caulton.
"Superette was established in 2002, and is a high-end fashion and homeware store with five locations across New Zealand.
"TSB Bank, is New Zealand-owned with 23 branches across the country; AMI Insurance has operated in New Zealand since 1926 and is one of the largest insurance groups in New Zealand and Australia.
"House of Travel is the largest privately-owned travel company in New Zealand with 75 stores across the country."
Other well-known brands include Tank Juice, Mondo Travel, Three Wise Men, Ruby and Habitual Fix, he says.
Halls Corner is held in five contiguous freehold titles with three separate buildings on the property. These have a combined net lettable area of 2416sq m along with nine parking spaces directly adjacent to a 250 space public car park.
The property has four addresses: 2-6 Hurstmere Rd; 8-16 Hurstmere Rd; 18-20 Hurstmere Rd and 486 Lake Rd.
1. There are two buildings at 2-6 Hurstmere Rd, a prominent single-level building originally constructed in the 1930s and a two-level addition built in the 1960s.
2. At 8-16 Hurstmere Rd, there is a two-level structure built in the 1930s, which has been significantly redesigned and upgraded to provide retail on the ground floor with office space above.
3. A single level structure occupies 18-20 Hurstmere Rd, which has been upgraded and redesigned to provide two retail tenancies.
4. 486 Lake Rd has a two-level building that has been redesigned to accommodate two large ground floor retail tenancies with first floor offices above.
Thompson believes the redevelopment potential of the large corner site is appealing, particularly as development sites in Takapuna are hard to find.
"Longer term, this corner site represents one of the best redevelopment opportunities in Takapuna. Zoned Metropolitan Town Centre with a 24.5m height limit, it has the potential for a seven-level, mixed-use development, and there is plenty of current growth to support this," he says.
"Takapuna is surrounded by some of the wealthiest suburbs in Auckland and is already undergoing a major urban transformation.
"Auckland Council estimates that over the next 15 years, central Takapuna will need an additional 1563 apartments to meet its forecast population growth.
"To accommodate this, hundreds of luxury apartments are already under construction. Major international retail brands have moved into the centre and Auckland Council has announced plans to redevelop its Anzac St car park directly adjacent to the property."
Thompson says the council's development will feature new public open spaces, laneways and a mix of residential and commercial buildings up to nine levels high. Modelled on the success of Wynyard Quarter, this is earmarked to begin in 2020.
"Before redevelopment begins, the council will construct a new multi-level car park on Huron St. This will accommodate the parking shortfall following the closure of their Anzac St car park.
"This car park will be 150m west of Halls Corner and construction is scheduled to start in late 2018."