The iconic commercial building known as Hillary House, next to Hillary Square in the seaside community of Ōrewa, is for sale as a multi-tenanted investment property with inherent future redevelopment potential.

Developed by the late-Keith Morris and owned by the well-known local Morris family, Hillary House has been an intergenerational asset, but the family now wishes to divest the property.

Built in a colonial-style with dormer windows in the roofline and offering a total 1,063sqm lettable space across three levels, the building sits on a freehold 815sqm site at the corner of Alice and Florence Avenues, adjacent to McDonald’s Ōrewa.

There are 12 current tenants on varying lease terms, with the building 85 percent occupied, and two tenancies vacant on level one. There is staff parking provided by a concrete-sealed area to the rear of the building, and public council-owned parking immediately in front of the ground floor tenancies.

Occupiers include The Guru Knows boutique, Perfection Nails and Spa, Coastal Cravings café, In a Spin self-service laundromat, Hibiscus Chiropractic, and New Zealand Red Cross charity shop.

Currently returning annual net rental of $247,680 plus GST and outgoings, most of the existing leases have development clauses in them.

The property will be sold by deadline sale closing 12th December through Ben Clare, Graeme Perigo and Marie Hansen of Bayleys Commercial Silverdale.

The Business – Town Centre zoning means the property has intrinsic future redevelopment potential, with the site’s 18-metre height limit overlay typically allowing development up to five to six levels with a key retail frontage control requiring activation of retail or commercial businesses on the ground floor.

Clare says in its current guise as a multi-tenanted investment property, Hillary House has very good fundamentals and is popular with occupiers, but the offering is sweetened by the zoning overlay and potential for intensification down the line.

“An astute buyer will recognise and appreciate Ōrewa’s lifestyle credentials and know that when the market – and the town – are ready for it, this site has location well and truly in its favour.

“In the interim, there is good income off the property and some vacancy which could be filled.

“The zoning could unlock future development potential for commercial, residential or mixed-use purposes, with outstanding sea views to be optimised from the upper levels if the site is developed upwards.

“Alternatively, a passive investor could put a property manager in to handle the day-to-day operation. As the property has a good leasing history, some minor refurbishment works could revitalise some of the existing spaces and make this an even more compelling hands-off investment.”

Perigo says Ōrewa continues to evolve with new townhouse developments, new retirement village offerings, and refurbished commercial space.

“The headquarters of the former Rodney District Council are being renovated and repositioned in the market as commercial offices in a development called Nexus Ōrewa,” he says.

“The town is in a growth phase and a new owner of Hillary House could definitely capitalise on this momentum.”

Located 40km north of the Auckland CBD and easily accessed via State Highway 1, Hansen says the subject property is located near the intersection with the Hibiscus Coast highway and has high visibility which works well for the existing tenant occupiers, but also underpins any future redevelopment.

“It’s just a short flat walk to banks, eateries, public amenities and the beach so it stacks up for convenience and lifestyle.”