A new fully-tenanted retail investment property is for sale in the rural settlement of Riverhead north of Auckland - an area designated for urban expansion in the fast-growing northwest.
"This property is destined to become the new heart of Riverhead," says John Davies, investment sales associate director at Colliers International who has a sole agency to market 1047-1049 Coatesville Riverhead Highway for sale by deadline private treaty closing at 4pm on Wednesday July 12 - unless sold earlier by negotiation.
Featured in the latest Colliers Portfolio publication, the property is in two freehold titles that can be sold separately or as one investment, making it attractive to family trusts and other private investors.
Zoned Business Local Centre under the Auckland Unitary Plan, the development comprises a new block of retail units across two separate structures.
Davies says construction and landscaping is already complete, and the first tenants are due to open for business next month.
The property will be anchored by a cafe, bar and restaurant business. The remaining three tenants will be a convenience store, Chinese takeaway restaurant, and boutique independent wine shop.
"A lane between the two buildings links the wide footpath on the street frontage with a fully lit and sealed car park at the rear, which has off-street parking for 25 vehicles," Davies says.
"Construction of the low-maintenance buildings comprises concrete foundation floors, long-run steel cladding, concrete inter-tenancy walls, aluminium framed exterior joinery and iron roofing. Buildings are sensitive to the character of the area, featuring a modern slant on the stepped parapets that characterise surrounding buildings.
"The freehold titles ensure plenty of future development potential as Riverhead continues to grow in the coming decades. The flexible construction means tenancies can be split or combined in future as required."
"This is an outstanding opportunity to secure one or both titles, each of which has unrivalled fundamentals across all key investment criteria," Davies says.
"The titles have long-term leases with fixed rental growth, proven tenants with strong trading histories, and a superb strategic location."
"The diverse tenant mix and position on a high-profile corner site ensure this retail centre will become a new focal point for the community. Locals will have a new place to meet friends over a coffee, meal or drink, and with two childcare centres in the area, it will also be a great place for families to gather."
Davies says each tenant is signed to a new eight-year lease with built-in rental growth.
As a single investment, the property earns total rent of $278,933 - with the smaller title generating $105,000 a year and the larger title earning $173,933 per annum.
"The tenants are responsible for their own fixtures and fittings, making this a hassle-free investment." Davies says.
"There are no other retail developments in Riverhead at the moment, making this an unmatched opportunity to secure an investment serving the expanding population. There has been good tenant demand for the property since its completion."
He says Riverhead is undergoing rapid residential growth, with Auckland Council earmarking it for significant urban development, alongside nearby Huapai and Kumeu.
Plans for 1400 new homes in the Kumeu, Huapai and Riverhead area are in place, with a further 6600 to be built from 2028.
The larger of the two titles, at 1047 Coatesville Riverhead Highway, has a land area of 1,029sq m.
Its main tenant is Housley Holdings Ltd, which was established by experienced hospitality operator and Riverhead local Dan Housley.
Davies says the concept behind the cafe, restaurant and bar business is to make the most of its corner location according to the times of day.
"A coffee shop to the northeast of the property will be lit by plenty of morning sun while providing a welcome caffeine hit for locals," he says.
"A lunchtime cafe at the northwest corner of the site, with outdoor seating, will allow customers to enjoy their meals in the midday and afternoon sun.
"The business focus will then shift to a restaurant and bar to the west, where locals can relax over drinks and dinner in the evening.
"A takeaway outlet down the lane will serve fish and chips, pizza and some options from the restaurant, making the most of the plentiful parking to the rear."
Davies says the secret is to have one back-of-house operation to service the revenue lines.
He says Housley is passionate about providing a top-quality local service to the community he lives in. "He is an experienced operator with a proven track record in the hospitality industry."
Davies says the other tenant is a Chinese takeaway restaurant whose owner has more than 10 years of experience.
"It will be a fast food takeaway and delivery operation with a distinctly Chinese-based food menu, differentiating it from Dan's offering."
The second title at 1049 Coatesville Riverhead Highway, with a land area of 623sq m, has two tenants.
"One will be a clean, modern convenience store run by an experienced businessman, and the other will be an independent boutique wine shop - one of six in an established operator's portfolio."
Jimmy O'Brien, North Shore general manager for Colliers, who is marketing the property with Davies, says it is conveniently located close to well-known local businesses.
"Nearby are the Hallertau Brewery, a Z service station and Riverhead Tavern."
O'Brien says the property is ideally located on a major connecting route between State Highway 16 and Coatesville.
"Coatesville is now one of Auckland's priciest suburb, with an average asking price of $3.5 million for residential and lifestyle properties.
"Investors in this retail development can take comfort that their tenants will be able to draw on clients within a wealthy and growing local population."
O'Brien says SH16, which is a short drive away, forms a major part of Auckland's western ring route connecting SH1 to the north via SH18.
The highway will also soon connect with SH1 to the south via SH20, which is due to be completed next month with the opening of the Waterview tunnel.
SH16 also provides access to two major developing town centres - Albany and Westgate - within some 15 minutes' drive of the property.
"The property is well-positioned within the Northwest Transformation area, which is the largest urbanisation project in New Zealand at present," O'Brien says.
"The project will ensure regional economic growth along with social, recreational, environmental and transport benefits."
O'Brien says Auckland Transport is planning to provide new roads to support the development of the new Westgate Town Centre including an east-west link.