Waiheke retail property has location, location
An elevated frontal view of retail property for sale at 153 Ocean View Rd, Waiheke.
A big retail property is for sale on Waiheke Island offering its new owners a net annual rental income of $231,300 from six long-standing tenancies along with the opportunity to develop vacant land overlooking Oneroa Beach.
Located in Waiheke’s main commercial precinct of Oneroa, the property encompasses a 470sq m split level commercial building on a 1087sq m site.
“It’s been owned by a consortium of private investors for close to 10 years and during that time had no vacancies,” says Simon Smith of Bayleys Ponsonby who, with colleague Cathy Cameron of Bayleys Waiheke, is marketing 153 Ocean View Rd for sale by auction at Bayleys’ central Auckland auction rooms on Wednesday November 23, unless sold earlier by negotiation.
Smith says the dearth of vacancies is a testament to the strength of the property’s high exposure and main road location which benefits from a high volume of both vehicular and pedestrian traffic. “A number of tenancies have stunning views out across Oneroa Bay which also helps draw customers,” he says.
“Consequently, the property has attracted several high profile commercial tenants including the island’s longest running restaurant Vino Vino, the Waiheke Wine Centre, Sandbar and Gulf Photography which has been in residence in the building for 23 years.”
Smith says the building was developed in the 1980s and has benefitted from a continuous programme of retail refits since then.
Cameron says one of the property’s major attractions for investors looking for opportunities to add value, is a strip of land on the northern part of the site and on the other side of a service lane which runs behind the existing building.
“This a sloping piece of vacant land comprising about one third of the total site area and providing a prime development opportunity given the elevated nature of the land which has sweeping views over the beach and out to the Coromandel Peninsula.
“There is a variety of options open to the next owner. Subject to obtaining the necessary consents, they could build a home and live off the solid cash flow the property currently provides. Alternatively, they could expand the property’s present commercial footprint and generate additional rental income or look at a combination of commercial and residential accommodation.”
An aerial view of the Waiheke commercial property with its boundary identified by a red border.
Smith says an idea of what could be achieved on the site has been provided by the development of a commercial complex on a neighbouring property built earlier this year and occupied by a real estate agency.
He says concept plans have been drawn up for a two-level, two-unit, mixed-use development at 153 Ocean View Road which could be used by the next owner to seek the necessary consents or they could draw up their own plans for the site.
The largest tenant in the building for sale is The Waiheke Wine Centre which has substantial frontage to Ocean View Rd. It occupies 158sq m of ground floor space plus 42sq m of cellar and storage area under the shop.
The business has operated out of the premises for over a decade and has exercised the first of two six-year rights of renewal that could take its occupation through until the end of 2025. The retail outlet stocks an extensive selection of Waiheke wines with two enomatic [wine dispenser] tasting stations enabling customers to sample 32 different local wines and liqueurs. It also sells a wide range of other wines and beers and spirits as well as olive oil, honey and other local artesian products.
The other large tenant is Vino Vino restaurant and wine bar which has been operating out of the premises for many years and occupies 196sq m including a 58sq m all-weather balcony dining area with panoramic views of Oneroa Bay. “It offers Mediterranean-style dining with one of New Zealand’s best restaurant views and also caters for private functions with Waiheke being a particularly popular wedding location,” says Cameron.
Vino Vino has a current five-year lease term with rights of renewal to 2028. The Sandbar which leases 97sq m of space also benefits from a large viewing deck with other tenants - being the Little Frog organic cafe and food store, the Skin Institute as well as Gulf Photography.
Cameron says the property is located opposite the popular Oyster Inn bar and restaurant and within a substantial commercial precinct that has an eclectic mix of shops, food and beverage businesses and real estate agencies.
“It’s the main shopping destination for visitors to the island and is experiencing increasing volumes of pedestrians as Waiheke’s international reputation as a great place to visit continues to grow.”