Strategic spot in 'medical hub'

9:53 AM Saturday September 27, 2014 Colin Taylor

The Taharoto Rd property has a pleasant street aspect.

A prominent and modern Takapuna office building, central to the area's "medical hub" and within a zone identified for higher density development, is featured in Bayleys' latest Total Property portfolio magazine.

The building at 46 Taharoto Rd is near North Shore Hospital and other health-related practices and is being sold by tender closing on October 23 through Tonia Robertson, Simon Aldridge and Ranjan Unka of Bayleys North Shore Commercial.

Robertson says the two-level property with 30 basement car parks is fully tenanted with an attractive lease profile that has delivered consistent rental growth from its longstanding, largely medical-focused tenants.

They include Ascot Hospital and Clinics, Hands on Rehabilitation, and Diagnostic Medlab Services.

The property generates a net annual rental of $284,817 plus GST from tenants on varying lease terms that have final expiry dates ranging from September 2017 to March 2023.

Robertson says the 970sq m building on a 1012sq m flat site is a straightforward investment with genuine add-value prospects.

"In its current form it ticks all the boxes for an investor. With a freehold standalone site, profile position in a major suburb, a favourable zoning, and well-respected longstanding tenants it's a clear standout in the Takapuna market," he says. "However, astute investors should also consider and weigh up the property's development potential in the future.

"Commercial land and buildings are so tightly held in Takapuna that forward-thinking investors and developers now need to think laterally and look at properties that have future add-value possibilities."

The property is near Smales Farm Technology Park and station, AUT University, and the Auckland motorway network. It is also next to another high-profile, four-level building occupied by the mental health management division of the Waitemata District Health Board.

Aldridge says that under the operative North Shore section of the Auckland Council district plan, 46 Taharoto Rd is zoned Business 9, allowing a building height of 12m with controlled flexibility up to 15m.

"So there is scope to go up further on this site," he says. "However, under the proposed Auckland Unitary Plan, the zone for this property would become mixed-use which gives added flexibility in allowing higher density development." He says the mixed-use zoning reflects the building's vicinity as a transitional area between residential and commercial zones with a range of possible building heights depending on context.

Unka says Taharoto Rd links two of the North Shore's primary commercial zones - Smales Farm to the north and Takapuna CBD to the south.

"The immediate area bordering Smales Farm has undergone significant commercialisation of its real estate over the past two decades - particularly in the number of healthcare providers which have sprung up to leverage off the proximity to North Shore Hospital.

"The ongoing transformation of Taharoto Rd into a mixed-use corridor means this building is ideally positioned to take advantage of growth and change."

Built in 2003, the air-conditioned building has exterior cladding of concrete slab to one side and parts of other walls, and aluminium joinery with tinted glazing. It contains quality facilities and services and has a pleasant street aspect.

A lift runs between the basement car parking and the upper two office levels. Access to the ground floor is through double glass swing doors from a canopied entranceway. On the ground level, the two office suites each have their own kitchenette and bathroom facilities.

The upper level has three office suites each with kitchenette anchored by a large lobby area. Common area amenities also include kitchenette and bathroom facilities.

Most of the site is taken up with the building, with a concreted car park front and back and landscaping including pebble gardens.