Dancing tenant in Glen Innes

The property has been used as a dance studio since 2006 and is leased to Raw Dance. Photo / Supplied

About 9km to the east of Auckland City, in suburban Glen Innes, an investment property is for sale with a new lease to a dance studio.

"This property has outstanding investment fundamentals," says Simon Child of Colliers International who, with colleagues Gareth Fraser and Shoneet Chand, is exclusively marketing 250-252 Taniwha St for sale by auction commencing at 11am on Wednesday June 19, unless it sells earlier.

The two-level 395sq m building covers most of a freehold, Business Town Centre zoned site of 258sq m across two titles. The site slopes slightly in contour and has 12.2m of frontage to Taniwha St.

"This sale presents a chance to secure a key landholding in an up-and-coming area," Child says. "Located in the heart of Glen Innes town centre it has an established tenant, access to excellent public transport services, and a flexible high-density zoning in a rapidly developing location."

The property is on a high-profile intersection with Apirana Ave, which is the main arterial route linking Glen Innes to Mt Wellington, Panmure, St Johns and Glendowie. It's also next to the Glen Innes bus exchange and only 20m from the pedestrian crossing to the Glen Innes train station.

Long-term tenant Raw Dance has re-signed to a three-year lease paying $82,700 plus GST in net annual rent from January 2019. One right of renewal of three years extends the final lease expiry date to 2025.

Child says the site's Business Town Centre zoning allows for intensive development of up to 32.5m in height, with a wide range of permitted uses including commercial, residential and retail.

Chand says the building was constructed in 1963 and recently underwent an interior upgrade.

"It has an A-grade seismic rating of 100 per cent new building standard [NBS] and is divided into three dance studios plus an attractively remodelled entrance and reception area that feature polished concrete floors.

"Studio One has a raised polished wooden floor; Studio Two has a wooden floor, and Studio Three has a specialist Tarkett vinyl dance floor. Building services include an HRV [heat recovery ventilation] system and heat pumps."

The property has been used as a dance studio since 2006 and tenant, Raw Dance, has occupied the building since 2014.

Raw Dance offers classes for pre-schoolers through to adults in a range of styles including jazz, hip hop, contemporary, ballet, stretch, and strength and conditioning.

Child says Glen Innes and the surrounding suburbs have experienced significant growth and gentrification in recent years.

"Glen Innes is quickly becoming a major retail destination with businesses in the area including Pak'nSave, Countdown, McDonald's, Animates, Chemist Warehouse and Citta Design.

"It is also a hub of residential growth, with good access to schooling including Sacred Heart, Tāmaki and Glendowie colleges.

"New Zealand's largest urban transformation project, the Tāmaki Regeneration Programme, has delivered hundreds of new homes in the area, with plans for 7500 in total."

Fraser says Glen Innes was recently recognised as a key town centre under the Auckland Unitary Plan.

"The town centre status, and the higher-density zoning that comes with it, will provide impetus for further intensification and commercial development.

"A proposed extension of the AMETI [Auckland Manukau Eastern Transport Initiative] eastern busway, which links through to Botany, is set to further strengthen the area's transport links and drive development."