Anchored by the Home Ideas Centre, which offers permanent showroom space for more than 100 brands within the home design sphere, and further occupied by multiple office tenants, the four-level property sits at the gateway to Petone at 10 Hutt Road, near the roundabout junction with The Esplanade and the State Highway 2 onramp.
Originally developed in the early-1980s as the head office for timber merchants Odlins, a firm which had a significant presence in Petone from 1924 with extensive timber yards and sawmill operations, the striking hexagonal-shaped building has had a strong leasing history.
The building has a total floor area of 3,746sqm plus 70 car parks and the 3,746sqm freehold site has wide frontages to Hutt Road, The Esplanade and profile to State Highway 2 given its elevation.
Each office floor has a common passenger lift and lobby area, bathrooms, kitchens, and two sets of fire exit stairs with car parking apportioned for tenants.
The property is currently 95-percent leased, with tenants on varying lease terms, and has a net passing income of approximately $768,000 per annum plus GST.
Long-time tenant Home Ideas Centre has signage rights and occupies the ground floor and level one, there are 10 office tenants across the balance of the building and telecommunications company Spark leases the roof area for mobile masts.
The 360-degree views, excellent natural light to each floor plate thanks to a feature atrium and courtyard in the centre of the structure, high on-site car parking ratio and streamlined arterial access have underpinned the leasing longevity of the property, according to agents marketing the offering.
10 Hutt Road, Petone is offered for sale by tender, closing Wednesday 15th June.
Fraser Press, Bayleys Wellington Commercial says while the landmark property has been upgraded over the years and has always leased well, there is some deferred maintenance required with the building’s lift and roof in original condition.
“The vendor has recent quotes for upgrading the roof, however he is opting to move the property on with the realignment of his commercial investments around the country,” he explains.
“In the current market, we expect add-value office sector investors will recognise the intrinsic value of the site – as will developers looking for future opportunity in Petone, which continues to cement its position as a desirable suburb with compelling credentials.”
“Anything we’ve taken to the market in Petone has resulted in significant investor enquiry.”
“The quick sale of the former Imperial Tobacco site around 1.5km or so away from this property, and the subsequent frenetic sell-down of developments emerging in that precinct, confirm the demand for, and appeal of, Petone.”
Press says given the maintenance the property requires and the demand for housing in Petone, conversations quickly swing to potential alternative uses – like a full redevelopment of the site to residential.
“Hutt City Council is currently looking at parts of its District Plan in light of central government’s new thinking around higher and denser housing supply in suburban areas – particularly in commercial centres within walking distance of train stations.”
“The outstanding harbour views and pivotal location of the Home Ideas building leaves the door open to exploration of residential opportunities.”
“The Petone Commercial – Area 2 zoning under the Hutt City District plan is a wide-ranging zone that allows for larger format retailing, servicing, industrial and commercial activities and can provide for uses including residential, places of assembly, visitor accommodation and retail.”
The subject property is a five-minute walk to the Petone train station on the Wellington/Hutt Valley/Wairarapa line and handy to Petone’s core retail hubs, namely big box retail around the PAK’nSAVE supermarket and the suburb’s destination boutique retail strip, Jackson Street.
Key occupiers in the area include Kmart, Briscoes, Rebel Sport, Bunnings, The Warehouse, Mitre 10 and education provider WelTec.
The property sits on a main arterial route from Lower Hutt to Petone and is a 10-minute off-peak commute to the Wellington CBD via State Highway 2.