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North Shore commercial investment opportunity with residential twist

Tags: Commercial

A high profile corner property in the commercial centre of Mairangi Bay Village is up for sale with a resource consent in place for a four-level retail and apartment building.

Located at 368 Beach Rd, the offering comprises a fully leased 644 sq m commercial building on 836 sq m of land with frontage also to Hastings Rd.

Featured in Bayleys’ latest Total Property portfolio, the property is for sale by deadline private closing at 4pm, October 25, unless sold prior. It is being marketed by Michael Nees, Dean Gilbert-Smith and Eddie Zhong of Bayleys North Shore Commercial.

“Situated in a prominent corner position on Beach Rd, the East Coast Bays primary coastal arterial route, this property is one of only a few commercial titles in the sought after Mairangi Bay Village and one of even fewer to be offered publicly to the market in recent years,” says Nees. “It is strategically located in the middle of the township opposite the village’s only pedestrian crossing with an abundance of public car parking nearby.”

The two-level building has an and an ATM machine and four retail outlets at ground level, comprising longstanding Sushi and Chinese takeaways, a Star shop and one shop formerly occupied by a pizza outlet which has a 12 month vendor rental underwrite from settlement. Upper level office space is occupied by a legal firm and there are 13 car parks at the rear of the site.

The property is currently generating total net annual rental income of $207,472 plus GST.

“The offering represents an ideal balance of land and income – a large freehold site with a substantial and diversified cashflow all underpinned by a blue chip locality,” says Nees. “This is a perfect nest egg for investors, family trusts and land bankers with an eye for the future.”

Dean Gilbert-Smith says the property offers plenty of add value opportunities for the next owner. Modest existing rental levels provide the prospect of future rental upside while the site’s Town Centre zoning enables it to be more intensively developed.

“The existing building could potentially be upgraded and expanded both upwards as well as outwards on the currently underutilised land at the rear of the site. Or the site could be completely redeveloped along the lines of the mixed use development for which resource consent has been granted and which makes full use of the site”.

The consented redevelopment plans have two retail units at ground level and three levels of residential units above comprising 12 apartments.

“The site’s northerly aspect and corner positon, which means it benefits from plenty of natural light, makes it ideally suited for residential development as does its location in the heart of a popular seaside village and within a short walk of one of Auckland’s nicest beaches,” says Gilbert-Smith.

Eddie Zhong says the Mairangi Bay Village provides a convenient local service retail hub for the surrounding suburbs of Mairangi, Murrays, Rothesay, Campbells and Castor bays and is anchored by several hospitability hotspots and a Countdown Supermarket.

He says there is a large proportion of “baby boomers” in the surrounding affluent residential population many of whom are looking to down size from traditional family homes. “This will create strong demand for a high quality apartments and townhouses close to the village. This in turn will increase value for the limited sites within the area with favorable, intensive zoning attributes like 368 Beach Rd. As such you would expect it be in hot demand in the medium term from developers looking to cash in on what would be a special opportunity.”

Zhong says while Mairangi Bay provides a relaxed seaside atmosphere it also has good access to public transport and the motorway network. It is located around five minutes’ drive from Constellation Drive and in turn Auckland’s Northern Motorway and “Park and Ride” bus service. A dedicated bus route running through Beach Rd to Takapuna and the Auckland CBD also provides a valuable public transport amenity.

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