Orewa beachfront retail and office block
Block of shops and offices for sale at 316 Hibiscus Coast Highway.
A tenanted beachfront block of shops and offices in Orewa directly across the road from the seaside town’s main beach is featured for sale in Barfoot & Thompson Commercial’s latest 60 page Insite portfolio publication.
“The property is also on an arterial highway and has a strategic corner position,” says Barry Masefield of Barfoot & Thompson Whangaparaoa who, with colleague Graeme Perigo, is marketing 316 Hibiscus Coast Highway for sale by auction on November 13.
“This is a multi tenanted retail and office block that will have appeal to investors looking for properties in locations that have a strong tenant demand,” Masefield says.
The 706 sq m freehold block of shops and offices is on a 951 sq m site on the corner of Hibiscus Coast Highway and Tamariki Avenue.
“The two level property is in the final stages of a $500,000 refurbishment programme that will see the building reinstated to an as new condition,” says Masefield.
“Due to the prime location of the building we signed tenants up for space before the refurbishment had begun and the owners ended up selecting an experienced diverse group of compatible businesses to ensure a relatively hassle free investment for the future owner.”
The retail tenants are Triton Hearing, Liquorland, House of Travel, a roast shop and a sushi outlet. A legal company occupies first level space above the five retail units.
“With the majority of tenants on eight year leases linked to Consumer Price Index and market rent reviews, and a projected rent roll of around $265,000, the property will appeal to passive investors and family trusts,” Masefield says.
He says the property is the last of five commercial buildings fronting Hibiscus Coast Highway and Moenui Avenue that were originally purchased by the Southside Group with the intention of constructing a 12 level retail apartment hotel development.
“Due to council not approving the height requirements to make the development viable, Southside sold four properties at 292-313 Hibiscus Coast Highway and retained ownership of this prime corner site to undertake a refurbishment. With the majority of the work completed and the leases in place, Southside have now decided to sell their last building in Orewa.”
Perigo says the council’s Proposed Unitary Plan indicates permitted development of up to four stories, so the property has the potential for the addition of more offices or apartments that would feature excellent sea views.
The building is of concrete block and has an initial evaluation procedure (IEP) rating of 89 per cent. “With a substantial refurbishment being due for completion, this should ensure minimal maintenance for the new owner,” Perigo says.
“Orewa itself is going through a transformation with the council repaving and extensively landscaping the Hibiscus Coast Highway and improving the connectivity between the shops and the beach. The result has been a shift to more cafes, bars and restaurants springing up along the road.”
Perigo says the property also adjoins a Countdown supermarket that is expanding to meet anticipated future demand from an increasing number of Auckland residents now living in Orewa which is a 25-30 minute commute to the Auckland CBD in off-peak hours.
“It is very rare for a tenanted standalone commercial property on a beachfront corner to come to the market,”Perigo says. “This combined with a strong cash flow from a variety of tenants and the future upside from development makes this a once in a lifetime investment opportunity.”