A multi tenanted commercial property in the tightly held Titirangi Village will go up for auction next month with high profile vacant retail space offering a significant add value opportunity for the next owner.
The 575sq m premises located on a freehold 2,664m² site at 404-406 Titirangi Road is currently producing net annual rental income of $133,570 plus GST from four tenancies but also has 273 sq m of empty ground floor space, until recently occupied by a bank.
“The vacant tenancy is among the best located retail space in Titirangi and offers a big opportunity for the next owner to add substantially to the property’s income by leasing it up to one or more tenants,” says Mike Adams, Bayleys West Auckland division’s sales manager who is marketing the property. “Alternatively, it could appeal to an owner occupier wanting a strong presence in the Titirangi town centre who could use the income from the other tenancies to help fund a leveraged purchase of the property.”
The offering is among a wide variety of commercial and industrial properties featured in Bayleys’ latest Total Property portfolio which will go under the hammer at 2pm, Wednesday, May 20, 2015 unless sold prior.
Adams says the property is centrally located in the heart of Titirangi Village between Rangiwai Road and South Titrangi Road and is surrounded by a mix of other commercial premises, with the village pharmacy next door. It has approximately 34m of frontage to Titirangi Road with the rear off the site dropping down steeply into a bush area.
The property comprises two buildings, constructed largely of concrete, with one an older-style character building which was originally the village hardware store. The second, larger building was completed in 1979 with alterations to the roof in 2000 adding distinctive pyramid like turrets to improve natural penetration into the main ground floor tenancies.
The main occupant in this building is Glover Real Estate, boutique West Auckland real estate company which has other offices in Green Bay and New Lynn and has been a tenant for many years. Next to it is a 42.5 sq m tenancy occupied by Titirangi Travel.
The fitout of the 237 sq m of vacant space has been removed although a large walk-in safe is still in position as are the kitchen and bathroom and an ATM machine on the outside wall adds to the property’s income stream.
The smaller, older building comprises 141 sq m, including a 20 sq m courtyard, and is occupied by the Hardware Café. The upper level on Titirangi Road houses the main café area and basement below is utilised for private functions and storage by the tenant.
“The café has been in business for 16 years and is a popular gathering place for locals as well as a stopping off point for traffic heading to or from the Waitekere Ranges and Huia,” says Adams. “It has Alpress trained baristas and offers breakfast, lunch and dinner meals.”
All the tenancies have a good level of separate amenities and entrances and there is a public parking building nearby, says Adams. “There are a relatively small cluster of commercial buildings in Titirangi Village which are very tightly held so they come up for sale infrequently. This property is a good example of that as it has been owned by the vendor for 35 years.”
It has a 2014 Government Valuation of $3,400,000 up from $2,225,000 at is previous valuation of 2011. The property has a current zoning of Community Environment which allows for a variety of retail uses and has a Large Lot and Local Centre zoning under the Proposed Auckland Unitary Plan (PAUP). Adams says the front portion of the site may have development potential longer term under the PAUP although any buyer would need to undertake their own investigations in this regard. The Local Centre zoning allows for buildings up to four storeys high, enabling residential use at upper floors. New development within the zone requires resource consent so that it is designed to a high standard which enhances the quality of the centre’s streets and public open spaces.