Henderson building has good tenants and development prospects

5:00 AM Saturday February 21, 2015 Colin Taylor

The office and retail property for sale at 20-22 Catherine St, Henderson.

A large, two-story Henderson CBD property with established tenants paying close to half a million dollars a year in rent is being marketed for sale as also having development possibilities for investors.

The 1836 sqm office and retail block at 20 Catherine St, Henderson, Auckland is being marketed by Deborah Dowling and Euan Stratton of Colliers International. It is for sale by deadline private treaty closing 4 pm on Tuesday March 10 unless it sells beforehand by negotiation.  

Dowling says the freehold building has a high Initial Evaluation Procedure (IEP) rating of more than 80 per cent and is occupied by two national branded retail tenants and a well-known accountancy firm.

“Having three established tenants is one of the strong appeals of this property for investors,” she says.  

“The beauty is they offer a significant, ongoing income stream for a property that stacks up as both a good stand-alone investment, as well as a property that has long term, wide ranging development options in what is a very strategic location.

“The property’s rental return could be viewed as an attractive holding income while extensive development possibilities allowed for the site are explored.”

Anchor tenant UHY Haines Norton is an accountancy firm that has been in operation for more than 60 years, working with both national and international clientele. It occupies the entire first floor, and part of the ground floor.

Sharing the ground floor is Cash Converters, the world’s largest second-hand dealer and a market leader in pawn broking, along with Harvey Furnishings, a home décor and custom furnishings retailer with 11 stores in New Zealand.

The recently refurbished building has a net lettable area of 1870 sq m and earns net annual income of $445,645.

Dowling says its zoning as ‘Community Environment’ includes generous development guidelines allowing for significant add-value opportunities to the site.

“These include provisions like unlimited height, no building coverage restrictions and opportunities for both residential and business activities in the future.

“This opens up major redevelopment potential on what is a high profile corner site - especially considering its location in the heart of a burgeoning CBD, which includes Westgate Mall as a neighbouring tenant.

“Sites of this scale, with opportunity for wide-ranging redevelopment in locations like this, simply don’t come up for sale that often,” says Dowling.

An attractive, glass balustrading entrance atrium off Catherine Street extends up into the first level where the accountancy firm offices and a small store room cover 1065 sqm. The shared retail space at ground level with one small office area and the lobby/atrium space covers a further 805 sq m.

The concrete slab and aluminium joinery building which has extensive glazing to both levels and internal stair and lift access, underwent widespread renovation and reconfiguring work in 2008 which included new air-conditioning throughout. Fire sprinkler heads are also installed.

The property has a good frontage onto Catherine Street and on-site car parking to the rear accessed off Pioneer Street. Kerbside parking is also available to both street frontages.

Stratton says the property is located in a very popular commercial area, just behind the Westfield Shopping Centre.

“Because of its central position, this would be regarded as a good commercial and retail location, where vacancies are rare, and bulk type retail dominates.

“It is also very close to Waitakere plaza and the Pioneer Shopping Plaza, with several smaller retail premises on the opposite side of Catherine Street.”

The location has additional business appeal being close top very large residential areas and a local train station.

“Ease of staffing and convenience for consumers is always an important consideration, and west Auckland offers the dual benefit of having established and ever-growing residential catchments within a very short commute of CBD precincts like this one,” says Stratton. 

Deborah Dowling, Colliers.jpg

Deborah Dowling of Colliers