Once-in-a-generation Takapuna commercial opportunity

The Property
• High-profile 916sqm triple-fronted beachfront corner site
• Fully-tenanted 1,113sqm three-level building incorporating basement parking for 33 vehicles
• Net annual income of $455,007 across four tenants
• Zoned Business-Metropolitan Centre

Quick Look
• National Total Property marketing campaign – by tender
• Interest generated via Bayleys’ databases, Total Property magazine, NZ Herald article
• Property attracted 55 direct enquiries, eight introductions from other salespeople, and resulted in 15 inspections
• SOLD for $11,250,000 at a 4.04 percent yield
• Purchased by a local landlord

The Story

This pivotally-located Takapuna commercial property with unrivalled views and Business-Metropolitan Centre zoning was described by agents as being “like no other opportunity for sale on the North Shore in recent memory”.

Peta Laery and Michael Nees of Bayleys North Shore Commercial marketed the property and said its favourable underlying zoning offered scope for either a broad brush redevelopment to optimise the value of the location or a refurbishment to add value.

Despite a sound leasing history from loyal tenants, with Takapuna one of just 10 Metropolitan-zoned centres in the Auckland region, the site had huge future potential given existing and planned amenities for the revitalised Takapuna town centre.

Peta said while the parties that submitted tenders were largely from developers looking to reposition the asset, overall there was more enquiry and interest from long-hold investors.

“Ultimately, the buyer was a proactive local landlord who, we understand, has an exciting plan for the property which will make it a great asset for the local area,” she said.

Although the final price achieved was at the lower end of Bayleys’ appraisal, Peta said the team was very clear and open throughout the campaign as to where the price feedback sat.

“We believe the vendor was fully comfortable with the work done by the agency team and had confidence in accepting the price.”

Michael said the campaign for this property revealed a broad pool of well-resourced purchasers seeking quality assets and the special nature of this particular opportunity was underscored by the interest shown.

Vendor Comment

A representative for the vendors Southlodge Investments Ltd. said Bayleys’ track record of professionalism and complete honesty underpinned the result achieved.

With the current buoyancy being seen in the commercial property market, the vendors felt that the timing was right for the high-profile Takapuna property to be sold.

“Additionally, given the expiry timings of the existing leases for tenants occupying the property, there was greater potential and opportunities for a property developer to be included in the mix of possible purchasers at this time,” they said.

The vendors had confidence in the market and said there had been a great deal of interest in this property over the years.

“It is in a prime location with loads of appeal and potential and the owners were continually being approached by interested parties to sell, so there weren’t any real concerns about the property resonating with buyers.”

From the very first proposal that Peta and Michael submitted to the vendors, they were impressed with Bayleys’ communication, knowledge and processes and were kept in the loop at every step of the campaign.

“From prior liaisons with Bayleys, the owner has always thought they acted professionally and with complete honesty and while the property didn’t necessarily sell for the top dollar that various agents had suggested, the owner was happy with the final selling price.”

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