The property centrepiece is a Melbourne-inspired laneway. Photo / Supplied
Fortieth & Hurstmere, an award-winning dining laneway in central Takapuna on Auckland's North Shore, has been put on the market for the first time.
The complex at 40 Hurstmere Rd encompasses 12 retail and office tenancies, says Euan Stratton of Colliers International North Shore who, with fellow director Matt Prentice, has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday April 3. The property will not be sold prior to the closing deadline.
"It comprises a 1495sq m mixed-use complex on a 1569sq m freehold title with Business Metropolitan Centre zoning," Stratton says.
"The laneway is superbly positioned on Takapuna's main retail strip, only 130 metres from the main intersection of Lake and Hurstmere Rds; and has potential for intensive redevelopment options in the longer term."
He says seven retail spaces range in size from 46sq m to 188sq m and are leased to: Bird on a Wire, Dante's Pizza, El Humero, Otto's, Double Dutch Fries, Poke Poke and Burger Burger - which occupies a sunny rear tenancy.
Two newly completed retail tenancies of 147sq m and 171sq m each are vendor underwritten, providing an opportunity for a new owner to add value by expanding the retail mix.
The three office tenancies of between 193sq m and 204sq m, are leased by Cooper and Co, Reset Urban Design and Cirkus Productions.
The potential annual rent generated by the12 tenancies is $755,994 - including the vendor underwrite. Rent reviews are every one or two years, either to market or indexed to inflation, with or without fixed percentage increases and locked-in rent growth.
Stratton says the final lease expiry dates are staggered between March 2021 and June 2035, promising stability of income over the long term.
"With its quality mix of tenants, outstanding location, steady split-risk income stream and architecturally-stunning design, Fortieth & Hurstmere makes for a trophy investment property with exceptional fundamentals," he says.
Stratton says the centre-piece of the property is a Melbourne-inspired laneway, set between two 'reimagined' and refurbished commercial buildings.
The complex makes extensive use of industrial materials and heritage cues including recycled brick, raw concrete, grey cobbled paving, black aluminium joinery, timber rafters, wrought-iron security gates and decorative screens.
Striking design features include living walls; a new facade that reinterprets both Art Deco and Victorian references; and a raised central courtyard with a retractable roof for all-weather outdoor dining.
"The vendor has invested a substantial amount of time, capital and passion into this premium property but is now moving on to the next project," Stratton says.
He says the property was initially an unprepossessing, two-level commercial building from the 1960s, occupied for many years by a bank, with a large ground floor retail space and first floor offices.
In 2015 the vendor engaged architects McKinney+Windeatt to substantially refurbish the building, transforming it into what is now Fortieth & Hurstmere.
The project won the Retail and Hospitality Award at the 2016 New Zealand Architecture Awards, with the judges describing it as "a small essay in urban design".
The judges commented: "From nothing, the architect has produced a result that's quite something. The scale is sympathetic, the materials are well-chosen and various; and the laneway spaces, including a small courtyard, work well."
Prentice says the refurbishment involved removing part of the original shopfront and excavating the site to create the internal laneway lined with cafes, eateries and the raised courtyard.
"The old roof was replaced with long-run iron and a new steel pergola structure was added at the rear for additional outdoor dining.
"The laneway tenancies differ in shape, size and layout, but all have full-height glazed shop frontages with retracting canopies, exposed industrial-type ceilings and polished concrete floors."
In 2010 the vendor purchased 48-50 Hurstmere Rd, which became vacant in 2018, and has subsequently refurbished it to the same high standard, Prentice says. "This is now incorporated into the development."
Prentice says the laneway provides access from the Anzac St car park at the rear of the property to the Hurstmere St frontage.
"The north-facing rear tenancies at the car park end benefit from afternoon sun, something missing from other Takapuna hospitality properties.
"Each of the eateries also has outdoor seating, either in the laneway, the common courtyard with retracting roof, or the fully covered rear courtyard.
"Stylishly appointed customer toilets are located at the rear of the laneway for patrons of all tenancies to access.
"Overall, Fortieth & Hurstmere provides an exceptional dining experience with a varied, yet complementary, range of cuisine from a carefully selected stable of quality tenants."
Two first-floor office tenancies, directly above the laneway, are accessed from a stairway off Hurstmere Rd. These share toilet facilities but have their own kitchens.
A third office, accessed from a stairway at the rear of the building, is cantilevered over the car parks. It has a well-appointed kitchen plus male and female toilets and shower.
Stratton says Takapuna has been identified by Auckland Council as one of the city's key metropolitan centres for growth and development. "Takapuna is set to grow by an estimated 15,000 residents and 15,000 employees by 2040.
"To accommodate this growth, Auckland Council has committed to a significant programme of urban regeneration, including substantial upgrades to Hurstmere Rd.
"This will transform Hurstmere Rd into a one-way street between Anzac St and Lake Rd, with a cycle lane and redesigned streetscape that prioritises space for people."
Prentice says the property for sale is directly opposite the popular Hurstmere Green, which is a pleasant open space where people can relax and directly access Takapuna Beach.
It is also next door to the council-owned property at 38 Hurstmere Rd, which was recently cleared, giving the property even greater profile to both pedestrian and vehicle traffic.
"A new owner could to continue talks with Council about opening Fortieth & Hurstmere to the newly created open space, with some concept plans available on request," Prentice says.
The property's Business Metropolitan Centre zoning is second only to the city centre in overall scale and intensity.
Prentice says this zone allows for a wide range of activities including commercial, leisure, high-density residential, tourist, cultural, community and civic services.
"So when the time is right there is potential for an eight-level retail, commercial and residential redevelopment, completing an intergenerational asset and income."
He says new residential developments have transformed the Takapuna skyline, with a number of apartment buildings between four to six levels either completed or under construction.
Takapuna is an affluent residential suburb and the North Shore's premier commercial centre; providing shopping, recreation, housing and employment in a beachfront setting only 9km from Auckland's CBD.
'This was the biggest New World upgrade in NZ because that store is the flagship.'