A suburban neighbourhood retail block of 10 tenancies on a freehold 2266 sq m corner site at 14-18 Raines Ave, in the North Shore suburb of Forrest Hill, is being offered for sale for the first time in more than 40 years.
Marketed by Shoneet Chand and Euan Stratton of Colliers International, the properties are spread across three freehold titles and will be auctioned as a parcel at 11am on September 27 at 151 Queen St, Auckland.
"Neighbourhood retail investments like this are always very popular among buyers, and don't come up for sale very often," Chand says.
"The overseas vendor, a family trust, is cashing up on its final New Zealand interest and is very motivated to see the property sold on auction day."
The 10 retail tenancies, currently generate $162,354 net a year. A liquor outlet and a dairy are the two major tenants. The other eight are an education and music tutor, cupcake and coffee shop, bakery, hairdresser, charity shop, Korean bakery, sushi shop and fish and chip shop.
The sale includes significant surplus development land behind the shops.
"This is a rare opportunity to purchase an entire suburban shopping block that is fully let to established tenants and has not been on the market for over 40 years.
"It has the potential to provide a secure cash flow and significant rental growth for many years to come," Chand says.
The 751 sq m building is constructed of concrete block and fibre-cement cladding with a long run iron roof. Chand says it is in excellent condition and has been very well maintained by the vendor. There is also ample parking available on the street as well as behind the shops.
"The block is zoned Business 1, which is favourable for future development.
"This zone is designed to provide opportunities for business activities in local neighbourhood centres at an appropriate scale and level of amenity for the residential areas in which they are located. It does not have intensive car parking requirements as some other zones do."
Chand and Stratton expect the property to appeal to investors from the wider Auckland region and around the country who are looking for affordable, established investment offerings with diversified income streams and future development potential.
"With vacant development available at the rear of the block of at least 573 square metres, the properties will also appeal to add-value investors and developers," Stratton says.