Check out Otahuhu bank buildings

10:10 AM Wednesday April 1, 2015 Colin Taylor

The two Otahuhu properties for sale and leased to ANZ & BNZ banks at 320-336 Great South Rd.

Two adjoining Otahuhu town centre commercial investment units, leased to ANZ and BNZ banks, are being offered for sale on behalf of Mahimahi Investments Limited.

“Having two notable tenants is one of the strong attractions of these investment properties,” says Ben Curran, commercial sales agent for JLL, who with colleague Ian Hall, is selling them via an expression of interest campaign closing at 4 pm on Friday April 17 unless they are sold earlier by negotiation.

“The market has shown a clear preference for investments backed by banking tenants in recent years,” Curran says. “Westpac, ASB and Postbank are within the same area which indicates that the major trading banks regard this as a sound location.”

Curran says the two commercial units at 320-336 Great South Road Otahuhu comprise adjoining banking chambers and are offered to investors, developers or owner occupiers for purchase as one package or as individual properties.

BNZ occupies Unit D which is 196 sq m in size and earns total net rent $51,000 per annum. Unit E is occupied by ANZ and is the larger of the two units at 286.50 sq m - producing net annual rent of $58,500.

The buildings are part of a 1990s retail redevelopment of the former Criterion Hotel which dated from the late 1840s and are part of a unit entitlement complex between Great South Rd, Atkinson Avenue, Criterion Lane and Avenue Road that includes a hotel, TAB and a fast-food restaurant. A now inaccessible cellar where the beer was stored remains as a relic of the original Criterion Hotel underneath the buildings.

Both units D and E are freehold and zoned Business Activity 3 under the Auckland City Council’s Operative District Plan – a zoning which applies to centres within the city containing a significant degree and intensity of business activity.

Curran says the units form part of Otahuhu’s town centre and are 15 minutes’ drive from Auckland’s CBD. “The properties are surrounded by a very diverse range of businesses and are within an area of high intensity development. Both buildings are in an excellent position, fronting the eastern side of Great South Road which is the main retail street running through the centre of the Otahuhu shopping strip.”

Hall says there the properties have a future potential to be subdivided premises into smaller shops. “These have traditionally attracted good tenant demand in this area and could prospectively gain higher rents for the owner on a square metre basis,” he says.

“Both buildings have recently undergone a seismic strengthening process which is a significant benefit for the future. An Earthquake Prone Policy Assessment for both units has been carried out by Beca and indicated that after their recent earthquake strengthening they now have an IEP [Initial Evaluation Procedure] rating of 85 per cent”.

Curran says a number of positive infrastructure projects are being implemented in the area that will have a significant impact on the value of the properties. “These include the East West Link and the Otahuhu bus train interchange which will considerably improve transport connectivity, boost the profile of the area and result in increased vehicle and pedestrian traffic.”

He cites JLL research figures giving a current daily average traffic flow for Great South Road of 11,642 vehicles and 21,725 vehicles passing daily along Atkinson Avenue.

He says work is also underway on a new retail development, Double Two Ltd, at 217-225 Great South Road that is expected to be completed in July and which has tenants now secured including a day-care centre on the first floor. A proposed residential development on Atkinson Avenue is in the planning stages with resource consent for 36 townhouses which will assist a housing need resulting from strong population growth in the area.

“Population projections from Statistics New Zealand indicate a 15 per cent growth in population in the Otahuhu area from between 2013 to 2023,” Curran says.

What’s on offer?

The property: Adjoining commercial units.

Location: 320-336 Great South Rd, Otahuhu.

Agency: JLL.

Sales method: Expression of interest.

Deadline for receipt: 4 pm on Friday April 17..

Features:

  • Unit D of 196 sq m earns $51,000 annually.
  • Unit E of 286.50 sq m rents for $58,500 annually.
  • For sale one package or individual properties.
  • Future potential to be subdivided.
  • High road frontage traffic visibility. 

Ben Curran, JLL.jpg

Ben Curran of JLL.