Three properties to watch in Orewa

5:00 AM Saturday May 21, 2016 True Commercial

The 140sq m vacant unit in the Westpac Plaza retail complex at 8 Moana Avenue.

Three properties in Orewa’s central business area are for sale in Bayleys’ latest Total Property portfolio offering opportunities for investors and owner occupiers.

One is an 85sq m retail unit in the ground level commercial component of the Nautilus apartment building at 4/11 Tamariki Avenue, earning net annual rental income of $35,000, which is being marketed by Paul Dixon and Meredith Graham of Bayleys Auckland office in conjunction with Mustan Bagasra of Bayleys Orewa.

The property will go up for auction on June 1 in Bayleys’ central Auckland auction rooms, unless sold earlier by negotiation, along with a variety of other commercial properties being auctioned in Bayleys’ latest Total Property portfolio.

Dixon says it offers smaller investors the chance to acquire an affordable, entry-level retail property occupied by a well know national tenant in one of Auckland’s big growth areas.

He says Bay Audiology has been in the premises for 10 years and recently extended its lease for another three years until April 2019  with one further three-year right of renewal. The lease includes three secure car parking spaces in the Nautilus building and a rental review is scheduled for April next year.

Dixon says the premises, which include a staff kitchenette and toilet, have been fitted out to a high standard and are modern and light with good street appeal.

“The large glass windows create a nice ambience allowing the sun to filter through and brighten the space as well as providing a view of the attractive tree lined street. There are also excellent opportunities for tenants to display their branding and advertising on the windows and on the building which Bay Audiology has used to good effect.”

Bay Audiology is the largest audiology service provider in New Zealand and since 1990 its network has grown to over more than 80 clinics nationwide operated by audiologists trained in the use of the latest testing, fitting and programming equipment. The company is part of the Amplifon Group, the world’s largest group of hearing clinics.

TRUE COMM Bay Audiology.jpg

The 85sq m retail unit at 4/11 Tamariki Avenue.

The Nautilus’ ground floor retail complex is home to a number of other retailers and service providers, including cafes, optometrists, dentists and insurance providers and, being close to the neighbouring Westpac Plaza retail complex, is in a popular shopping area, says Bagasra.

“Orewa is no longer considered to be only a popular holiday destination. It is one of the fastest growing towns in New Zealand and a very desirable area for home buyers. Significant residential development on its boundaries continues to push up its population. As a consequence there is an expanding business economy and associated demand for commercial accommodation and particularly good retail space which is hard to find.”

Another central retail offering being marketed by Bagasra is a 140sq m vacant unit in the nearby Westpac Plaza retail complex at 8 Moana Avenue.

He says the vendor has decided to sell the strata-titled property after 16 years of ownership following the departure of a long-standing previous tenant that operated an internet cafe and flooring showroom in the premises.

“This opens up an opportunity for either for an owner occupier wanting to establish or expand a business in this busy retail area or an investor looking for an add value opportunity. The property has dual separate main entrances making it easy to split it into two tenancies, which would enable an investor to maximise the rental return and spread tenancy risk.”

The unit has its own kitchenette and toilet facilities and would be suitable for a number of retail or professional services uses, says Bagasra. It is located in a corner position in the Westpac Plaza, which was built in the mid-1980s with its tenancies fronting on to a central parking area for customers with further first floor parking atop one side of the building for both customers and occupiers.

TRUE COM 4D 16 Florence.JPG

The 216sq m office floor on the top level of a three-level commercial building at 16 Florence Avenue.

“The Westpac Plaza has been a major shopping and office complex in Orewa for many years, anchored by the bank and housing a wide range of businesses including retail, service industry and food outlets. It’s popular with shoppers due to its easy access off two main streets and abundant car parking.”

Bagasra says there have been three sales in the unit-titled Plaza since July of last year at or above their Capital Valuation (CV) with prices ranging from $450,000 for an 85sq m unit to $585,000 for a 100sq m unit that had a CV of $430,000. The property for sale, Unit G, has a CV of $540,000.

Bagasra says there is a good mixture of retail, commercial and residential uses located around the both Westpac Plaza and the Bay Audiology unit.

The final Orewa property for sale is a modern 216sq m office floor on the top level of a three-level commercial building completed in 2011 at 16 Florence Avenue, a main arterial road. It is also being marketed by Bagasra with an asking price of $1.1 million plus GST.

The unit is producing net annual rental income of $72,000 from a short-term lease and the tenant has indicated a willingness to negotiate a new lease, says Bagasra.

“Alternatively the property has considerable appeal for an owner-occupier offering among the best A-grade office space in Orewa with a modern air conditioning system, an immaculate kitchen plus its own security alarm system and smoke detectors.

“The high quality office space also opens out onto three decks, including two that are north-facing with a peek of the sea, and the third, attached to the kitchen area, overlooking Orewa the town centre.”

Included with the property are seven carparks plus a motorbike park at the rear, with direct access to the ground floor lobby and lifts which provide access to the upper floors. He says it would be possible to split the floor area into two separate tenancies. The flexible Town Centre zoning under the Proposed Auckland Unitary Plan could also allow it to be converted to apartment living or a live and work combination, subject to body corporate approval.