A large retail property holding in Oneroa with six longstanding tenancies is up for sale.
Located at 153 Ocean View Road, the property encompasses a 470sq m split level commercial building on a 1087 sq m site producing net annual rental income of $231,300.
Mr Smith says the property has been owned by a consortium of private investors for close to 10 years and during that time it has had no vacancies.
“That is testament to the strength of its high exposure, main road location which benefits from a high volume of both vehicular and pedestrian traffic. A number of the tenancies have also made the most of stunning views out across Oneroa Bay which also helps draw customers,” he says “Consequently, the property has attracted a number of Waiheke’s most high profile commercial tenants including the island’s longest running restaurant Vino Vino, the Waiheke Wine Centre, Sandbar and Gulf Photography which has been in residence in the building for 23 years.”
Smith says the building was developed in the 1980s and has benefitted from a continuous programme of retail refits since then.
Cathy Cameron says one of the property’s major attractions for investors looking for opportunities to add value is a strip of land on the northern part of the site, on the other side of a service lane which runs behind the existing building.
“This a sloping piece of vacant land which comprises approximately one third of the total site area and provides a prime development opportunity given the elevated nature of the land which has views over the beach and out to the Coromandel Peninsula.
“There are a number of options for the next owner. Subject to obtaining the necessary council consents, you could build a home and live off the solid cash flow that the property currently provides. Alternatively, you could expand the property’s existing commercial footprint and generate additional rental income or look at a combination of commercial and residential accommodation.”
Mr Smith says an idea of what could be achieved on the site is provided by the development of a commercial complex on the neighbouring property which was built earlier this year and is occupied by Sotheby’s real estate agency.
He says concept plans have been drawn up for a two-level, two-unit mixed use development at 153 Ocean View Road which could be utilised by the next owner to seek the necessary consents or they could draw up their own plans for the site.
The largest tenant in the existing building is The Waiheke Wine Centre which has substantial frontage to Ocean View Road. It occupies 158 sq m of ground floor space plus 42 sq m of cellar and storage area under the shop. It has operated out of the premises for over a decade and has exercised the first of two six-year rights of renewal which could take its occupation through until the end of 2025.
The other large tenant is Vino Vino restaurant and wine bar which has been operating out of the premises for many years and occupies 196 sq m including a 58 sq m all-weather balcony dining area with panoramic views of Oneroa Bay.
Vino Vino has a current five-year lease term with rights of renewal to 2028. The Sandbar which leases 97 sq m of space also benefits from a large viewing deck with other tenants being the Little Frog organic café and food store, the Skin Institute as well as Gulf Photography.