Halls Corner in Takapuna has a high profile at the intersection of Hurstmere and Lake Rds. Photo / Supplied
Halls Corner in Takapuna has a high profile at the intersection of Hurstmere and Lake Rds. Photo / Supplied
The landmark Halls Corner retail portfolio in the heart of Takapuna is for sale for only the second time in 111 years.
Located at the high-profile intersection of Hurstmere Rd and Lake Rd, the multi-tenanted property is being sold as three separate offerings, allowing investors to buy one, two or all three.
Shoneet Chand and Matt Prentice, of Colliers International's North Shore office, are marketing Halls Corner for sale by deadline private treaty closing December 6, unless sold earlier. The property is featured in the latest nationwide Colliers Portfolio, launched yesterday.
Chand says it is rare for such a high-profile retail portfolio to be offered for sale in one of the most tightly-held locations on Auckland's North Shore.
"Halls Corner offers excellent investment fundamentals, starting with its commanding position at the intersection of two of Takapuna's most prominent streets."
H says Halls Corner comprises multiple buildings on freehold titles, all of which have been extensively refurbished.
"All three properties are fully tenanted, with between four to seven tenants each, making for a total of 17 tenancies. Strong tenant covenants are provided by well-known local and national businesses, including TSB bank, House of Travel, AMI, Ruby and Tank Juice.
"With multiple tenancies and long-term leases, each individual property is an ideal split-risk investment. Taken together, all three offerings make for a formidable retail investment portfolio."
Chand says the site's Metropolitan Centre zoning under the Auckland Unitary Plan allows for significant redevelopment in future. Meanwhile, in total there would be a split risk holding income of up to $1.43m a year.
The multi-tenanted properties making up Halls Corner - are identified by a blue border. Photo / Supplied
The three properties are:
486 Lake Rd and 18-20 Hurstmere Rd comprising four tenancies, plus a car park leased on a month-by-month basis. "With a net lettable area of 1416.17sq m, the property is currently tenanted by AMI, House of Travel, Madam Woo, and Superette," Chand says. "It is earning $621,347 a year in rent, with a mix of fixed and market rental reviews."
Madam Woo, the restaurant of celebrity chef Josh Emmett, occupies a 369.9sq m tenancy fronting Lake Rd, and is signed to a 10-year lease expiring in June 2025, followed by two five-year rights of renewal.
Fashion retailer Superette, which stocks an extensive range of local and international clothing, lifestyle goods, homeware and accessories, occupies a 721.8sq m unit fronting Lake Rd. The six-year lease expires in July 2021, followed by a six-year right of renewal.
House of Travel occupies a 127.11sq m tenancy on Hurstmere Rd, while national insurer AMI leases the neighbouring 197.36sq m tenancy. Both are signed to six-year leases expiring in July 2021. House of Travel has two six-year rights of renewal, while AMI has three three-year rights of renewal.
480-484 Lake Rd and 2-6 Hurstmere Rd comprises seven tenancies over 627.18sq m.
"Anchored by TSB Bank, this property also has a diverse mix of six smaller tenants of between 39sq m and 87sq m - 3 Wise Men, Habitual Fix, 3 Legged Dog Design, Umi Sushi, Mondo Travel, and a cafe.
"It is earning $468,837.38 in rent per annum, with a mix of fixed and market rental reviews," says Prentice.
TSB Bank occupies the 224sq m corner tenancy, at the intersection of Lake Rd and Hurstmere Rd. The bank is signed to a 12-year lease, with nine years remaining, followed by a 12-year right of renewal.
Men's clothing retailer 3 Wise Men has a tenancy of 69sq m on the Hurstmere Rd side. It is signed to a six-year lease until October 2021, with two three-year rights of renewal.
8-16 Hurstmere Rd comprises six tenancies over 432.4sq m, plus a car park leased on a month-by-month basis.
"The property earns a total of $337,625 a year in rent, with a mix of fixed and market rental reviews," says Prentice.
"Tenancies of between 47.42sq m and 88sq m are occupied by children's clothing retailer Grey and Wild, fashion retailer Ruby, creative agency Libby and Ben, Tank Juice, a bakery and a small commercial lease."
Chand says interest is expected to be strong.
"This is the most significant property portfolio on Takapuna's main retail strip to come to market this year [and] a chance for serious investors to wrap up a real trophy in time for Christmas."
