A prime piece of seaside retail real estate on Tamaki Drive in St Heliers Village’s tightly held commercial precinct will go under the hammer early next month in Bayleys’ final Total Property portfolio auction for the year.
The property comprising a 288 sq m two-level building on 235 sq m of land at 413 Tamaki Drive is located directly opposite St Heliers beach and close to the intersection with St Heliers Bay Rd.
It is currently generating net annual rental income of $169,145, split between two tenants on 10-year leases which both run until 2022 with no rights of renewal.
The offering is among 20 commercial and industrial properties featured in Total Property which will go up for auction on December 5, unless sold prior to that date. It is being marketed by Bayleys Auckland agents Cameron Melhuish, Andrew Wallace and James Chan.
“This a high profile, freehold standalone building with a sought after waterfront position on busy Tamaki Drive,” says Melhuish. “Opportunities to purchase in this location are very scarce with properties rarely changing hands. It represents an outstanding passive investment offering for a medium sized investor or family trust.
“There are also possibilities here for more entrepreneurial investors looking for add value opportunities given the existing leases have no automatic rights of renewal.”
The ground floor had accommodated a Harcourts real estate agency before it relocated to office premises just around the corner on St Heliers Bay Rd. Its head lease rental obligation continues until early 2022 although the space is currently subleased to a Karsten clearance store which specialises in the sale of high quality Mexican cotton products.
The ground floor tenancy comprises approximately 140 sq m of commercial accommodation with a 40 sq m courtyard behind. “It is a high profile space and lends itself to a range of uses, including retail, professional offices or a food and beverage tenancy which could incorporate the rear courtyard space,” says Melhuish.
“There would be an opportunity for an investor to add further value to the premises at the end of the current lease through refurbishment or modernisation. Alternatively, it could appeal to an owner occupier looking to secure a prime waterfront position with substantial exposure to Tamaki Drive in St Heliers Bay village.
The entire upstairs area, plus part of the ground floor, is leased to Dewar Dental Limited, trading as St Heliers Dental Centre and is part of the multinational Bupa healthcare services group. “This is a nicely presented premises consisting of a reception area plus various treatment rooms ,” says Andrew Wallace. “The property’s north facing aspect provides excellent natural light and the upper level has attractive water views over the beach out to Rangitoto Island.
“Longer term, this tenancy also provides plenty of options which include negotiating a new extended lease term with the long standing occupier, finding another tenant, owner occupation or redevelopment. The top floor would suit a variety of commercial uses or, given its great outlook and location, has potential for residential conversion - something that is encouraged on upper building levels in the Town Centre zoning that applies to this location,” says Wallace.
“The upstairs area is smaller than downstairs and it could also be possible to expand its floor area to make fuller use of the site, subject to obtaining the necessary council consents.”
The building, which dates back to the 1940s, has a seismic assessment of close to 50 per cent of New Building Standard which James Chan says means that unlike some other older style buildings in the village, it is not classified as earthquake prone.
He says St Heliers is one of Auckland’s oldest, and most vibrant, seaside commercial precincts. “The village rarely has any significant vacancy and has a good mix of national brands, such as banks and real estate agencies, as well as boutique retailers and local businesses.”