By True Commercial
Two high-profile retail units with a strong mix of established tenants on the main strip of the popular Auckland seaside suburb of Browns Bay are for sale separately or as a combined investment.
Colliers International has been exclusively appointed to market Units G1 and G2 at 87-109 Clyde Road, for sale by deadline private treaty closing at 4pm on Thursday, September 14 - unless sold earlier by negotiation.
Both properties are featured in the latest Colliers Portfolio, released yesterday.
Gareth Fraser, the agency's Auckland investment sales director, says both stratum-in-freehold properties feature an 'enviable list of investment fundamentals.
"The superb split-risk retail properties have a great North Shore location, excellent established tenants and long-term add value options," he says.
"With a commanding location on Browns Bay's main retail strip, both properties are well positioned for growth as the East Coast Bays area continues to attract new residents.
"This is a rare chance for investors to get a foothold in sought-after Browns Bay by adding one or both of these solid investments to a portfolio."
Unit G1 is split into seven tenancies over 1178sq m and is earning net annual rent of $407,896 plus GST.
The unit is tenanted by eateries Beach Bistro and Velvet Gypsy, convenience food retailers Subway and Noodle Canteen, charity Age Plus, government agency Work and Income, and clothing store Caroline Eve.
Unit G2 has four tenancies within 465.45sq m, paying $178,618 in net rent per annum plus GST.
The tenants are Pizza Hut, Rangitoto Accounting, and Gaku Teppanyaki Restaurant. The fourth tenancy is currently vacant with a vendor underwrite.
Fraser says both properties for sale benefit from a superb location in the heart of Browns Bay.
"Situated in a high-growth Auckland location, they are only about a 10-15 minute drive from Takapuna and a 25-minute drive from the Auckland CBD," he says.
"Browns Bay's popular retail and commercial centre is one of the largest in the East Coast Bays area. Residents are attracted to its wide variety of convenience and retail shops, as well as business services operating from offices on the upper levels."
Fraser says both properties have a street frontage on the eastern side of Clyde Rd, at the northern end of Browns Bay's established retail strip.
Beach Bistro and Velvet Gypsy in Unit G1 also have secondary frontage to Beachfront Lane, which offers direct access to nearby Browns Bay beach.
"Clyde Rd is well regarded as an excellent retail location with strong demand from the local catchment," Fraser says.
"The recent upgrade to Beachfront Lane has improved the facilities surrounding the beach, enhancing properties like this."
Zoned Business Town Centre, the units form part of a medium-rise, mixed use building.
Shoneet Chand, Colliers's North Shore investment sales director, who is marketing the property with Fraser, says the retail units were originally developed in the mid-1980s.
Substantial additions were made in 2003, including apartments overlooking the beach.
"On-site car parking is available on the ground level at the rear, with pedestrian access from each unit, as well as the first floor above the shops," Chand says. "Additional parking is provided on the street."
He says the building is 'believed to be' of concrete frame construction and meets 100 per cent of new building standards. The vendor is currently carrying out an extensive refurbishment of the canopy.
Chand says Unit G1's long-term tenants present investors with an excellent spilt-risk option.
"Beach Bistro is a well-regarded local eatery which quickly became a favourite among locals after opening in 2012. The business was closed by fire in April last year, but is now being refurbished." Beach Bistro occupies 97sq m and has recently signed to a new six-year lease.
Velvet Gypsy is a well-established bar and restaurant offering indoor and outdoor seating with a dual-sided fireplace. "It also hosts many weddings and other functions," Chand says.
The restaurant occupies around 286sq m and is signed to a four-year lease.
Social services provider Work and Income, part of the Ministry of Social Development, occupies a 335sq m tenancy.
"Government tenants are highly attractive to investors," Chand says.
Women's fashion retailer Caroline Eve leases a 175sq m tenancy; Asian eatery Noodle Canteen 100sq m; sandwich chain Subway 96sq m; and Age Plus charitable trust 88sq m.
Chand says Unit G2 also offers a good range of tenants.
"Gaku Teppanyaki, which occupies about 168sq m with an excellent fit out, is a well-established Japanese restaurant that is popular with locals," he says.
Convenience food retailer Pizza Hut rents around154sq m; local accountancy firm Rangitoto Accounting 82sq m; and the underwritten vacant tenancy is 61sq m.
Chand says interest in both units is expected to be strong.