Wheel of good fortune in Royal Oak building

No. 725 Mt Albert Rd is the grey building facing the roundabout. Photo / Supplied

A highly visible, fully leased and freehold property on the Royal Oak roundabout has come up for sale at 725 Mt Albert Rd, Royal Oak.

Marketed by Colliers International brokers Marcus Brown and Jonathan Lynch on behalf of Lupen Holdings, the single level commercial property on the corner of the Royal Oak roundabout is due to be auctioned at 11am on Wednesday, September 29 at Colliers' offices at 151 Queen St, Auckland.

Surrounded by well-established restaurants and retail outlets, the single level commercial building is on business-zoned site and offers a total rentable area of 301.02sq m.

The building returns total annual income of $99,112.00 and is divided into two tenancies, with nine carparks at the rear of the 569sq m site. Of the space, 180.62sq m and four carparks are leased to Southern Suburbs Realty on a six-year term that provides $59,112 per annum and is set to expire on February 19, 2012. The 120.40sq m space and five carparks are leased to GY Group on a five-year term set to expire on May 14, 2011 and earns $40,000 annually.

"Despite being fully leased, neither tenant is in occupation," says Lynch. "What this means for a purchaser is a guaranteed holding income from the day they complete the acquisition, with the opportunity to develop the site and its income potential."

Brown says the property is on the southern side of Mt Albert Rd, at its easternmost point where it meets the Royal Oak roundabout.

"The property has direct frontage on to Symonds St which puts it in the heart of the established commercial centre of Royal Oak. Due to its high visibility on an arterial route to Auckland Airport and to heavy commuter traffic, this corner site would suit a range of destination retail outlets - especially those seeking to establish a brand awareness.

"It's estimated 75,000 cars enter the roundabout every day according to Auckland City Council statistics, which makes this one of the busiest roundabouts in the country," Brown says.

Brown says permitted activities on the site include care centres, community welfare facilities, educational facilities, healthcare services and offices. Among the discretionary activities for the property are: a boarding house or hostel, carparking, a drive-through facility or vehicle sales and service premises.

He says the property should appeal to a variety of "metro" investors who specialise in the sub-$3 million market, including owner occupiers and developers.

"In this wide-ranging metro market, we have already billed more this year so far than we did all of last year. Of the entire stock of metro properties that we have sold so far this year, totalling $58 million in value, only three properties have been over $3 million in value so it is pretty clear therefore: the heartbeat of market is below that figure."

Colliers International's most recent retail report, published at the end of July, says demand for prime shops throughout the country is rising, with rents holding firm.

Director of research and consulting, Alan McMahon, says Auckland retail investor confidence in the June quarter is the highest for the past three years.