Potential development site for sale in central Takapuna
July 5, 2017 - A two-level building with frontage to both Hurstmere Rd and Killarney St in what is described as Takapuna’s “restaurant golden mile” is up for sale offering substantial future development potential.
The 995 sq m building on a 567 sq m site zoned Business Metropolitan Centre at 178 Hurstmere Rd is one of 12 commercial and industrial properties featured in Bayleys’ latest Total Property portfolio that will go up for auction on August 2 unless sold prior to that date. It is being marketed by Brian Caldwell, Ashton Geissler and Damian Stephen of Bayleys North Shore Commercial.
The property, which for many years housed the iconic Killarney St Brasserie & Bar, is now split into four tenancies which will provide the next owner with net annual rental income of $284,117.
“This is an opportunity to purchase a significant landholding in a prime central Takapuna location which will provide a substantial cashflow over the next few years,” says Caldwell. “Longer term, the site has considerable upside potential under its Auckland Unitary Plan Metropolitan Centre zoning which has been applied to areas identified for growth and intensification.”
The property has dual access from both streets, with the lower level having substantial exposure to Hurstmere Rd and the upper level fronting onto Killarney St with its entranceway well positioned between surrounding offstreet parallel car parks.
It is currently occupied by Little Red Cup Café, which recently exercised the first of two two-year rights of renewal, the Bella Figura hair salon which is on a final six-year right of renewal from June last year and the Pushkar Indian Cuisine restaurant. It has a lease running until February next year with multiple rights of renewal but a demolition clause that kicks in on December 1, 2021.
A 372 sq m restaurant and bar area which occupies parts of both floors, formerly occupied by a French restaurant, has a new four-year lease commencing July 1 with four four-year rights of renewal at an annual rental of $125,000. Caldwell says this space is fully set up and consented for a 60-seat restaurant and bar with a commercial kitchen, two walk- in fridges and a high quality fit out.
It also has a demolition clause that can be exercised from December 2021and means that the lease can be terminated with 12 months’ notice.
“This gives the new or subsequent owners the flexibility to further develop the site from late 2022 onwards. The new unitary plan zoning permits intensive commercial and or residential development, subject to obtaining the necessary resource consents, up to a height of 24.5 metres,” says Caldwell.
“The site is in a pivotal position on the elevated triangular apex of Hurstmere Rd and Killarney St which provides a developer with flair and vision with the opportunity to unlock the full potential of the location. It could suit a mix of commercial activities on the lower levels similar to what is there at the moment with residential above, or full conversion to residential.
“It’s in an ideal area for residential development as evidenced by the number of multi-level residential developments nearby. It is close to all the retail, food beverage and entertainment offerings of central Takapuna and is only a short stroll from Takapuna Beach and Lake Pupuke.
“The upper levels of a residential development would benefit from commanding lake, beach and Hauraki Gulf views and plenty of natural light.”