Ideas flow for flagship Petone property
One of the most recognisable commercial buildings in the Wellington harbourside suburb of Petone has been placed on the market, sparking conversations around its potential.
Anchored by the Home Ideas Centre, which offers permanent showroom space for more than 100 home design brands, and further occupied by multiple office tenants, the four-level property sits at the gateway to Petone at 10 Hutt Rd.
Developed in the early1980s as the head office for Odlins timber merchants, the striking hexagonal-shaped building has had a strong leasing history.
The property is for sale by tender, closing Wednesday 15 June.
The building has a total floor area of 3746sq m plus 70 car parks and the 3746sq m freehold site has wide frontages to Hutt Rd, The Esplanade and profile to SH2.
Each office floor has a common passenger lift and lobby area, bathrooms, kitchens, and two sets of fire exit stairs with car parking apportioned for tenants.
The property is currently 95 per cent leased, with tenants on varying lease terms, and has an annual net passing income of approximately $768,000 plus GST.
Long-time tenant Home Ideas Centre has signage rights and occupies the ground floor and level one. There are 10 office tenants across the balance of the building and Spark leases the roof area for mobile masts.
The 360-degree views, excellent natural light to each floor plate thanks to a feature atrium and central courtyard, high on-site car parking ratio and streamlined arterial access underpin the property’s leasing longevity, according to agents marketing the offering.
Fraser Press of Bayleys Wellington Commercial says while the landmark property has been upgraded over the years and has always leased well, there is some deferred maintenance required with the building’s lift and roof in original condition.
“The vendor has recent quotes for upgrading the roof. However he is opting to move the property on with the realignment of his commercial investments around the country,” he explains.
“In the current market, we expect add-value office sector investors will recognise the intrinsic value of the site, as will developers looking for future opportunity in Petone, which continues to cement its position as a desirable suburb with compelling credentials.
“Anything we’ve taken to the market in Petone has resulted in significant investor inquiry. The quick sale of the former Imperial Tobacco site around 1.5km or so away from this property, and the subsequent frenetic sell-down of developments emerging in that precinct, confirm the demand for, and appeal of, Petone.”
Press says given the maintenance the property requires and the demand for housing in Petone, conversations quickly swing to potential alternative uses – like a full redevelopment of the site to residential.
“Hutt City Council is currently looking at parts of its District Plan in light of central government’s new thinking around higher and denser housing supply in suburban areas – particularly in commercial centres within walking distance of train stations.
“The outstanding harbour views and pivotal location of the Home Ideas building leaves the
door open to exploration of residential opportunities.
“The Petone Commercial – Area 2 zoning under the Hutt City District plan is a wide-ranging zone that allows for larger format retailing, servicing, industrial and commercial activities and can provide for uses including residential, places of assembly, visitor accommodation and retail.”
The property is a five-minute walk to the Petone train station on the Wellington/Hutt Valley/Wairarapa line and handy to Petone’s core retail hubs, namely big box retail around the Pak’n Save supermarket and the boutique retail strip, Jackson St. It sits on a main arterial route and is a 10-minute off-peak commute to the Wellington CBD via SH2.