One of Auckland’s best known retail arcades has gone up for sale after the 90-year-old landmark received a facelift last year.
The fully occupied, 2,431 square metre three-level mixed-use complex, located at 183 Karangahape Road, is up for tender, closing on June 14 unless sold prior.
It is being marketed by Alan Haydock and Damien Bullick of Bayleys Auckland City & Fringe division who say the location has long been a jewel of Auckland city.
“The tasteful renovation has retained and enhanced the integrity of the arcade and its eclectic tenancy mix while also lightening and brightening the place up,” says Haydock. “It has certainly met with a very positive response from Aucklanders and therefore from tenants as well.”
The property is now fully leased to over 30 occupants who will provide the next owner with total net annual rental income of approximately $1.168 million a year.
The Icon Group’s Paul Reid says the decision to sell fits with the company’s commercial add value business model. “We would love to retain the building, however, we are selling to recycle funds into our next add value project.”
The refurbishment and restoration included a full interior and exterior repaint and retiling, new roofing and the reinstatement of historical corbels and leadlight glass as well as the installation of modern building services and technology such as new fiber cabling.
“There is a good mix of retail, hospitality, commercial and residential tenants with a weighted average lease term of approximately of 3.5 years and a wide range of expiry dates,” says Haydock.
“Many of the leases have fixed annual rental increases which will provide the next owner with steady rental growth in the years ahead.”
In July 2015 the St Kevins Arcade was bought by former Shortland Street star, Paul Reid, who is now a property manager.
Reid had plans to restore the arcade then, but his purchase saw critics calling out his plans to turn the arcade into another typical food court, as per the rumors.
But Reid went against speculations and upgraded the arcade alongside his business team at The Icon Group.
Looking to the future, Reid says St Kevins Arcade is well set to grow very effectively in the coming years.
“As younger and more upwardly mobile consumers continue to eschew mainstream malls in favour of authentic boutique brands and experiences and millennials continue to reside close to hip and fashionable inner city artistic suburbs, St Kevins arcade is perfectly positioned to capitalise on this growing demographic.”