Investors Go Shopping for Greater Auckland Retail Premises
Entry-level commercial property investors and small portfolio owners are being targeted as the key buyer markets for a quartet of diverse retail properties spread across Greater Auckland which have individually been placed on the market for sale.
The four properties range from a liquor outlet in the city’s northern beachside suburb of Orewa, and a cafe with an apartment above in one of the city’s high-end suburbs, through to a block of shops in the east and a dairy and convenience outlet in the southern outskirts.
All four locations are being sold by Bayleys Real Estate - with just the land and buildings on offer in all instances.
Topping the rental returns list of the retail foursome is the land and building housing a block of seven tenancies located 8 – 14 Moore Street in Howick. The recently refurbished 434 square metre building over two levels sits on 875 square metres of freehold land, and generates a combined income of $143,965 plus GST from the six retail tenancies and one commercial lease..
The property is being marketed for sale by deadline private treaty through Bayleys Manukau, with offers closing at 2pm on April 12. Salespeople Tony Chaudhary, Janak Darji and Amy Weng said the property was a split-risk investment opportunity housing a diverse range of tenancies, including a drycleaning outlet, a sushi shop, a cafe, a boutique designer second-hand clothing store, a hair dressing salon, an office, and an Indian restaurant
“The tenancies are operating on leases which have rights of renewals for differing terms, and most are on two-yearly rent reviews. The rear of the property has substantial car parking spaces, and the operational expenses are shared among the retail tenancies,” Mr Chaudhary said.
Next up, the land and building at 571 Remuera Road which houses a trendy café at street level, with a two-bedroom apartment above, generating a combined revenue of $50,000 plus GST per annum. The café is currently on four-year lease running through to 2021 with two further four-year rights of renewal.
The property is being marketed for sale through a tender process by Bayleys Auckland, with tenders closing at 4pm on April 12. Salespeople Andrew Wallace, Genevieve Thompson-Ford and Cameron Melhuish said ground floor tenant Table Talk café enjoyed a high volume of foot traffic as the premises was located in the middle of the popular Upland Road shopping precinct.
Mr Melhuish said the café’s long-standing operator was also the tenant of the accommodation upstairs – delivering a strong relationship with the property’s owner, and a high level of tenant satisfaction. Both premises had undergone renovation work in recent years to create a modern feel to what was a character building.
Mr Melhuish said the 123 square metre building sitting on 157 square metres of freehold land had built-in rental growth – with annual three percent rent increases written into the lease. Both the ground floor retail space and upstairs dwelling measured 61.8 square metres each.
Third on the list of retail-founded properties for sale is a traditional dairy/superette located at 70 St George Street in Papatoetoe – the South Auckland suburb’s main retail strip stretching between the Wylie Road/Station roundabout, and the T-junction intersection with Wallace Road.
The 326 square metre block of freehold land in St George St sustains a 120 square metre building trading as the St George Street Superette, and is being marketed for sale at auction on April 10 through Bayleys Manukau.
Salespeople Ash Jogia, John Bolton and Dave Stanley said the St George Street Superette was currently on a two year lease coming up for review later this year, with four further four-year rights of renewal, and delivering annual net rental of $30,100 plus GST.
“This stretch of Papatoetoe’s central retail hub is proliferated by the usual selection of high street banks such as the ANZ, BNZ and Kiwibank, as well as the stereotypical array of ethnic eateries and pizza parlours,” Mr Stanley said.
“The array of tenancies ensures this part of Papatoetoe remains at the centre of the community’s retail needs.”
Completing the trio of retail sites is a single-storey 85 square metre premises at 8K Moana Avenue located in Orewa’s central shopping precinct, which is zoned business town centre under Auckland Council’s operative unitary plan. The property Is being marketed for sale at auction on April 11 through Bayleys Orewa.
Salesperson Mustan Bagasra said the property’s sole tenant, Liquor Town, was currently on a three year lease expiring in 2019, with three further three-year rights of renewal, and generating a net rental of $30,000 plus GST per annum.
“Being located within a horse-shoe shaped block of multiple other retail premises, Liquor Town amply fits the ‘convenience’ tag which enables shoppers to concurrently purchase the likes of home take-away meals and a beer or wine within a few hundred metres walking distance,” Mr Bagasra said.
“The convenience factor of Liquor Town is amplified by the 40 or so non-metred car parks available immediately in front of the store, while a steady customer base comes from the adjacent 150 unit Nautilus apartment block.”