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Former spa and sauna complex is hot property

A large retail complex which hosted a traditional Korean sauna with heated and cold baths as a former tenant has been placed on the market under a receivership sale.

The 1847 square metre freehold site in Albany on Auckland’s North Shore features a 560 square metre single level building comprising two separate tenancies, the larger of which is currently vacant.

Sitting near the hub of North Shore’s sporting zone, the complex is situated in close proximity to the Millennium Institute of Sport and Health, Rangitoto College, and North Harbour Stadium.

In close proximity are high quality office, warehouse and showroom type properties, with some retail and cafes interspersed throughout.

The complex benefits from extensive frontage on Arrenway Drive, a 90 square metre veranda, with 26 onsite carparks and extensively landscaped lawn, trees and shrubs.

Nam Sam Restaurant serving Korean food occupies the tenancy for the 103 square metre front portion of the building. The restaurant has a five-year lease with one five-year right of renewal, taking the tenancy through to 2020, and generates an annual rental of $41,000.

The second area, measuring 460 square metres, is currently vacant. The tenancy was previously held by North Shore Health Sauna with an annual rental of $160,000.

The now vacant part of the building features existing stress, well-being and health facilities including a dance studio, massage studio, reception area, as well as separate men’s and women’s spa and changing room facilities.

Included in the sale are an external pump house, featuring heat exchanger unit and hot water cylinder, wall mounted mirrors in the dance studio, as well as four spa baths and one sauna unit.

Each changing room features timber lockers and vanity benches and mirrors, while the sauna area is timber lined.

The retail complex is for sale by auction through Bayleys on July 27 and marketed by Auckland commercial and industrial salesperson Mike Adams in conjunction with Bayleys North Shore salesperson Terry Kim.

Mr Adams said the building represented a good opportunity for purchasers looking to take on a building with an income from an existing tenant, plus upside from the current vacancy.

“The vacant portion still features much of the existing fit out for a serious health and recreation facility which closed in May, including the necessary pumps, boilers and filtration equipment required for operation of the pools and sauna.

“There is also extra office and mixed use space within this area of the building which has previously been subleased.”

Mr Adams said if the new owner did not wish to utilise the existing fit-out, there was scope to redevelop or reconfigure the space as the configuration of the building and its construction may easily allow for this.

“Alternative uses for the site could include a conversion to trade showroom, factory shops, automotive/marine sales, car rental depot, retail/restaurant, leisure/health, religious and community uses or even for use as a commercial office with the appropriate consents being granted,” he said.

“There are a number of known brands in the surrounding area including Turners Car Auctions, Ripcurl, Icebreaker and Federation Clothing, which may prove to be attractive to a prospective retail tenant.”

Mr Adams said Arrenway Drive had good links to Auckland’s northern motorway, a 20 minute drive south in off-peak traffic to the city’s Central Business District.