Beach-side St Heliers retail
Apremium retail property in the St Heliers Village commercial precinct will go under the hammer early next month, in Bayleys’ final Total Property portfolio auction for 2018.
It is a 288sq m two-level building, on 235sq m of land, at 413 Tamaki Dr, which is directly opposite St Heliers beach and close to the intersection with St Heliers Bay Rd.
Now generating net annual rental income of $169,145, the property is split between two tenants on 10-year leases, both of which run until 2022 without a right of renewal.
The offering is among 20 commercial and industrial properties scheduled for sale at the auction on December 5, unless sold earlier.
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.
“There are possibilities here for more entrepreneurial investors looking for add value opportunities given the existing leases have no automatic rights of renewal.”
The ground floor accommodated a Harcourts real estate agency before it relocated just round the corner on St Heliers Bay Rd.
Its head lease rental obligation continues until early 2022, although the space is now subleased to a Karsten clearance store, a specialist in quality Mexican cotton products. The ground floor tenancy comprises about 140sq m of commercial accommodation, with a 40sq 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 upstairs, plus part of the ground floor, is leased to Dewar Dental Ltd, 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 Wallace.
“The property’s north facing aspect provides excellent natural light and the upper level has attractive water views over the beach to Rangitoto Island. Longer term, this tenancy also provides plenty of options which include negotiating a new extended lease with the long standing occupier, finding another tenant, owneroccupation 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 with the Town Centre zoning that applies to this location,” says Wallace.
“The upstairs is smaller than downstairs and it could also be possible to expand its floor area to make fuller use of the site.”
The building, which dates back to the 1940s, has a seismic assessment of close to 50 per cent of New Building Standard, says Chan.
He points out that, unlike some other older style buildings in the village, it is not classified as earthquake prone.
“St Heliers is one of Auckland’s oldest, and most vibrant, seaside commercial precincts.
“An excellent mix of national brands there includes banks and real estate agencies, plus boutique retailers and local businesses — but rarely any significant vacancy.”