The fully-tenanted showroom and office property in the sought-after suburb of Petone in Lower Hutt, where significant development activity is underpinning values of property across all asset classes in the area, is anchored by O’Reilly’s Garage.
This successful independent luxury vehicle dealership specialises in both modern and classic automotive investments – a sector of the market that has boomed on the back of pandemic conditions as people seek to reward themselves and fill the void left by cancelled overseas travel.
With its inventory including Mercedes-Benz, Porsche, Ferrari, and Bentley, O’Reilly’s Garage occupies the ground floor of the immaculately presented large high-stud converted warehouse, with two established office tenancies on the upper level.
Additionally, the on-site cafe Berlinetta which operates from a renovated shipping container to the front of the asphalted yard is a drawcard for clients, locals who live in the area and passing traffic.
Zoned General Business, the 1,160-square metre site in the north-western sector of Petone has a wide frontage to busy Hutt Road, the main route between Lower Hutt and Petone, and is just 12 kilometres from Wellington’s CBD with streamlined access on to State Highway 2 via the Dowse Interchange.
Marketing agents Mark and Ethan Hourigan of Bayleys Wellington Commercial will take the property to auction at 11am on Thursday 9th December.
“Petone is a popular hunting ground for investors and there have been few opportunities of this calibre in recent years,” said Mark Hourigan.
“This is a hotly-contested part of town with Kmart 300 metres along the road, the railway station just beyond that and Petone’s large format retail precinct including Briscoes, PAK’nSAVE and The Warehouse close by.
“Investor interest has rocketed in Petone and the surge of development happening at the nearby former Imperial Tobacco site will only strengthen the value of properties like O’Reilly’s Garage going forward.”
The circa-1980s warehouse building underwent a complete refurbishment in 2019, transforming the ground level into a high-end showroom with expansive bifold doors designed to showcase the eclectic and coveted vehicle range that the dealership has become known for, along with a fully-facilitated service department.
Above, two quality office tenancies are leased to marketing agency Scratch Design and facility and asset management company, Programmed.
An initial report from engineers Spencer Holmes puts the building at 90 percent new building standard.
The combined net income for the 1,082 square metres of building area is $209,257 per annum plus GST, with O’Reilly’s Garage on a new six-year lease with two three-year rights of renewal, and the two office businesses on varying lease terms – also with rights of renewal.
Ethan Hourigan said Petone, with its destination boutique retail offerings, eclectic food and beverage outlets and quaint early settler architecture is undergoing a further metamorphosis from its earlier manufacturing and processing roots.
“Progress is well underway on the 2.25-hectare former Imperial Tobacco site around 600 metres from O’Reilly’s Garage,” he said.
“That site is being split between a modern residential townhouse development and an 85-unit business park and sales have been brisk.
“Projects of that scale with the backing and experience of seasoned developers adds significant weight to the value equation that Petone offers.”