Retail building holds potential for residential conversion

The Papakura building at 143 Great South Rd has six retail tenants.

A central Papakura character building with a fully leased ground floor in the heart of the suburb's retail strip is being marketed as having potential for residential conversion upstairs, a trend that has been successful in several fringe Auckland suburban areas.

The 1920s-built Stanley Building at 143 Great South Rd has six retail tenants producing net rental income of $160,364 and is being marketed by Simon Aldridge of Bayleys North Shore Commercial in conjunction with Tony Chaudhary, Bayleys Manukau.

The 1150sq m building is prominently positioned on a 1115sq m site on the corner of Great South Rd and Elliot St, about 500m from the upgraded Papakura train station.

Ground floor tenants include Bay Audiology, eye care retailer OPSM, Chequers Finance, a unisex hair salon, Shoe Bizz shoe shop and an ANZ cash machine. Lease terms range up to nine years with various rights of renewal and two have been renewed this year.

Aldridge says that with Auckland's projected population due to hit two million by 2031, areas such as Papakura that offer affordable housing are expected to experience population growth as more central locations become too expensive for low- to middle-income families.

"With draft plans from Auckland Council for high-density development in Papakura, it makes sense to consider converting the top floor of this building," he says.

Aldridge says the vendor has had discussions with the council about converting the first floor into residential accommodation. However, the family, which has owned the property for more than 40 years, has decided to leave the potential conversion, which would require resource consent, to a new owner.

He says the building would make an attractive residential conversion if features such as the wooden floors and decorative features on the exterior were retained.

The building comprises a wooden ground floor, concrete block walls, a mix of concrete and wooden flooring on the first floor and pitched corrugated iron roofing. A seismic assessment is being undertaken which will be made available to interested parties.

It will be among 33 properties put up for auction in Auckland and Tauranga on April 10 as part of Bayleys' latest Total Property portfolio.