Three-tenant site in Takapuna CBD
This property at 42-44 Hurstmere Rd has three tenants on long-term leases. Photo / Supplied
A retail property encompassing several central Takapuna shops is on the market for the first time in more than five decades.
The 298sq m freehold property at 42-44 Hurstmere Rd, has three tenants on long-term leases, and is being marketed for sale by Colliers International brokers Euan Stratton, Matt Prentice and Ellie Martin. They describe it as, “ripe for development”.
Stratton sees the forthcoming May 10 auction sale as a chance to acquire a high-profile investment and potential future development site in a strategic location.
“Multi-tenanted retail investments in the heart of Takapuna are seldom offered for sale on the open market,” he says.
“This property hasn’t changed hands in almost 55 years, so it’s an excellent opportunity to expand a property portfolio in a tightly-held, fast-growing location.”
The split-risk investment currently earns $147,254 in annual rent from three separate retail tenancies ranging in sizes from 53sq m to 189sq m.
“Investors can draw on multiple income streams, while developers can draw on passive income while planning their next move.”
Prentice says the property is well positioned to benefit as Takapuna expands.
“This affluent suburb has huge residential growth forecast, with multiple apartment developments underway,” he says.
“Retailers in Takapuna are poised to benefit from that growth, with new high-end national and international brands looking to establish themselves in the area.”
Prentice says the neighbouring property at 40 Hurstmere Rd was smartly redeveloped recently, which shows the potential to expand upmarket.
“This is sale is a chance to secure a solid investment before the full benefits of Takapuna’s demographic boom start rolling in. All three tenants have street frontages, which gives them high profile to both vehicle and pedestrian traffic on Takapuna’s main strip,” says Martin.
The site comprises a compact, mainly single-level building which originally dates back to the mid-1950s, and has since been partly refurbished.
A retail property encompassing several central Takapuna shops is on the market. Photo / Supplied
It is anchored by the popular Thai Takapuna Cafe and Restaurant, which is on a 12-year lease with four years remaining, bringing in $63,000 a year.
The 189sq m restaurant has a recessed entrance with a central street frontage between the two other tenants. It widens out at the rear to occupy the full width of the building, behind the two other tenancies.
“A Clerestory peaked roof provides natural light to the entrance and restaurant areas, while a small upstairs office is located near the rear,” Martin says.
The other two tenants are skin clinic Clearskincare and optometrists Mortimer Hirst.
Clearskincare Takapuna, one of two New Zealand clinics established by the leading Australian skin therapy company, is on a five-year lease with a five-year right of renewal, bringing in $48,702 a year.
The 73sq m clinic has recently been extensively refitted to a very high standard across its reception area and waiting room, four consulting rooms, storeroom and rear staff amenities.
Martin says the consulting rooms have been finished to a “semi-medical” standard.
Mortimer Hirst is on a six-year lease with two, two-year rights of renewal, bringing in $35,552 a year.
The 53sq m clinic has been recently refurbished with new flooring, wall and ceiling linings, partitions and air conditioning, as well as extensive electrical, plumbing, air conditioning and fire detection work.
Martin says the property is positioned on the western side of Hurstmere Rd, some 150m north of the junction with Lake Rd.
“Hurstmere Green offers a pleasant open space for people to relax as well as direct access to Takapuna Beach.”
The locale consists mainly of retail shops and eateries, including a successful funky food laneway in the property bordering to the south.
A large council carpark is situated to the rear with paid parking facilities, while the street has 30 minutes of free parking.