A fully-let freestanding commercial investment property in the well-kept East Auckland suburb of Howick signals an opportunity for a forward-thinking new owner in light of changing dynamics within the popular village.
The property at 19 Wellington Street sits on a 1,012m² frontage site near the intersection with Picton Street, the main shopping street, and is tenanted by Westpac Bank and coworking space providers Cleave House.
The building footprint is 887.25 m² and the property has a Level A Initial Assessment Procedure (IEP) seismic report.
The three-level building was built specifically for Westpac in 1985, and the banking entity has occupied all or part of the property ever since.
The bank operates from the ground floor, while on the upper level – which was originally Westpac’s regional administration office – coworking space provider Cleave House operates a business model of shared office space.
The property brings in an annual net income of $207,901 plus GST and expenses, with both tenants having variable tenancy terms and Westpac exercising a renewal right last year.
The property is for sale by tender at 4pm, Thursday May 5, unless previously sold and is being marketed by Mike Adams of Bayleys Auckland Central, in association with Dave Stanley and Greg Hall
from Bayleys South of Auckland.
Adams says the property is well placed to take advantage of the established vibrant village retail strip of Picton Street and new retail developments along Fencible Drive which have enabled Howick to be a self-sufficient suburb with a strong local shop philosophy.
“Howick is a suburb that has retained its own identity despite significant development in surrounding areas,” he says.
“Residents are very loyal to their village and that has been evident throughout the pandemic, with local retailers weathering the harsh conditions well.
“As well as the large supermarket chains and banks, the village has small independent businesses such as hospitality and retail that are dependent on local commerce and have been well supported.”
The area immediately surrounding the subject property is changing, with more intensive residential development proving popular.
“The Westpac-anchored property has a church on one side and residential flats on the other, with an additional living flat across the road,” says Adams.
“While the building has been a successful commercial investment for over 30 years, the underlying zoning favorable to mixed business use points to future redevelopment opportunities and potential buyers are encouraged to pursue options through the usual channels of the Advice.
“Increasingly, we are seeing investors exploring commercial properties with mixed-use zoning near town centers with a longer-term vision of partial conversion to residential or more intensive redevelopment into clean slate. to take advantage of the site.
The property comprises three levels with underground parking offering 29 spaces and modern offices with good natural light on the ground and first floors.
There are entrances to the front on Wellington Street and to the rear on the north side, as well as access to the stairwell from the basement car park to each of the upper floors.
Both tenants have renewal rights in their leases. The lease of anchor tenant Westpac (NZ) Investments Limited has a final expiry in 2029 with market rent review mechanisms in place, while C House Limited, trading as Cleave House, has a final expiry in 2033 with rent reviews compared to a regular CPI review structure.
In addition to ample on-site parking, the property benefits from ample municipal parking less than a minute’s walk from the door.
Howick is well served by public transport with frequent bus connections, and Half Moon Bay ferry terminal is 4km away with bus links to Howick village.
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