Takapuna’s tenanted trophy trio
Property will be sought- after because of its diversified income stream, reports Colin Taylor
Three fully- occupied office buildings on the edge of Takapuna’s commercial precinct are for sale as one package earning annual rent of more than $ 4 million from established medical and commercial tenants.
“This is a flagship North Shore investment,” says Shoneet Chand of Colliers International who, with colleagues Jason Seymour and Matt Prentice, is marketing the buildings at 2, 3 and 4 Fred Thomas Drive for sale by deadline private treaty closing on March 15 — unless they sell beforehand by negotiation.
“We expect this property to be sought- after because of its diversified income stream generating annual net income of $ 4,320,000; its highly visible location and the excellent condition of the buildings,” Chand says.
“It’s not very often a ready- made, property investment of this scale comes on the open market in Takapuna.”
Seymour says one of the buildings is newly- constructed, sitting between t wo original buildings that have undergone major refurbishment and upgrading.
“The property encompasses 1.5 hectares of Mixed- Use zoned land in an exceptional North Shore location,” he says. “The buildings have been fully redeveloped by the current owners, who recognised their potential due to their closeness to the northern motorway, Takapuna and Smales Farm.
“That potential has been realised with the buildings 100 per cent leased following the completion of the refurbishments and new building project.”
The three- level, 4115sq m building at 2 Fred Thomas Drive was constructed in the 1980s and once housed a bowling alley. “It has been completely renovated and is now home to a ground floor high- end medical centre with two levels of large floorplate office space above,” says Chand.
“The former dark ground floor level has been opened up and is fully glazed, with a new plaza extending around three sides of the building providing pedestrian access.”
A medical practice, Green Cross Health Limited ( trading as The Doctors), is the largest tenant in the building, holding a 12- year lease with rights of renewal.
The tenant has subleased part of its ground floor space to various specialists including a pharmacy, radiologist and physiotherapy clinic. Green Cross Health is a large medical group which has a number of practices in New Zealand.
The new building at 3 Fred Thomas Drive incorporates a 531sq m ground- floor medical tenancy, leased to Auckland Eye for 10 years, and a multi- level car park with over 200 spaces.
Prentice says Auckland Eye has completed its own fit- out to the ground floor tenancy, creating a highspec space which includes surgical theatres and consultation rooms.
The adjacent three- level 7617sq m building, at 4 Fred Thomas Drive was also built in the 1980s and contains office space and a small warehouse area.
Chand says a comprehensive refurbishment project has resulted in a well- presented office building which is home to large tenants including Aon, Riley Consultants, Amplifon and The Electoral Commission.
“The makeover included installing new lifts, air conditioning and security systems, new flooring and doors, a completely re- modelled foyer and feature lighting.
“As a priority for the owners, energy- efficient lighting was installed inside and out.”
Seymour says the total number of car parks i s over 450 — “a good parking ratio for suburban offices”.
The buildings are within a popular commercial zone where several older industrial buildings have been refurbished into modern showroom space as part of a wider and rapid transformation towards higher- value commercial and residential uses.
“A 24- hour Countdown supermarket is north of the property and the 134- unit Shoal Haven apartment development i s next door,” Prentice says.
“A major selling point is the good transport access. Motorway connections and local roads have been substantially upgraded — including the extension of Fred Thomas Drive through to Esmonde Rd to create a parallel route to Barry’s Point Rd. Nearby Akoranga bus station is also a big plus for staff.”