"Longer term, there is potential to significantly increase the income and the value of the property through refurbishment of the building or redevelopment of the site given its current favourable flexible zoning which will continue on under the proposed Auckland Unitary Plan."
The strategically located building was officially opened in 1966 as a new Guthrie Bowron & Co Ltd retail store and warehouse, by the Mayor of Mount Eden, Ernest W. Turner, and was part of the Dunedin-based firm's nationwide chain of paint, wallpaper and accessories stores.
About 522sq m of the building is tenanted, producing net annual rental income of $65,500 from a five-year head lease to Ruy Limited which runs until July 2018 and has one five-year right of renewal. The company operates a restaurant on the first floor and subleases 125sq m on the first and ground floors to a fast food tenancy which fronts on to Dominion Rd. Around 313sq m on the ground floor, including a share of the unloading and parking area at the rear, is vacant and was formerly occupied by a supermarket.
Liang says if the current lease is renewed in 2018 the landlord is able to give six months' notice to terminate once the necessary resource, building and other consents to carry out demolition or significant alterations have been obtained and provided to the tenant.
The site is currently zoned Business 2 which permits a range of commercial, leisure and residential activities, with development controls allowing for a basic floor ratio of two-to-one up to a four-to-one maximum, with a height restriction of 12.5 metres or about three storeys.
Under the Auckland Unitary Plan, Auckland Council is proposing a Local Centre zoning which applies to a large number of small centres throughout Auckland in areas of good public transport.
The zone provides for the local convenience needs of surrounding residential areas, including commercial services, offices, food and beverage and retail.
Liang says the property would be well suited to this purpose given its shared unloading and parking area at the rear of the site. The new zoning will also allow for buildings up to three storeys high in Balmoral and enable residential use on upper floors.
Liang says 660 Dominion Rd will benefit from Auckland Council's $50 million road upgrade. "This will transform the area directly in front of the property into a people-friendly place and further enhance the shopping, dining and living experience of the area."
Also rejuvenating the area will be a Mixed Use complex planned for a 1.2ha site in Balmoral Rd. During the past 15 years, The Warehouse has acquired several parcels of land adjoining its current store which will be redeveloped into 7130sq m of retail and food and beverage space and include a 4800sq m new store along with 34 apartments with 234 parking spaces.
