Chan says a feature of the leases is built-in income growth, with annual rental increases of 3 per cent a year for the duration of the eight-year terms.
"The units will be auctioned individually which means they are in an affordable and attractive price range for entry level investors, perhaps looking to diversify from the residential market, or for those looking to add a property in a prime retail location to their existing portfolio," says Chan. "Properties in a strong fringe CBD location like this are rarely available in this price bracket."
The units are located directly opposite the landmark former Ponsonby Post Office building and are in a high profile position on a major intersection of four roads, with College Hill, Ponsonby and Jervois Rds being arterials carrying heavy volumes of traffic to and from the CBD.
Quinn Ngo says the established and thriving retail precinct of Three Lamps contains a range of cafes, banks and smaller niche retailers. The two properties occupied by Future Feet are part of a three-level complex on the corner of Jervois Rd and St Marys Rd comprising a basement carpark, ground level retail and first floor offices. At the rear of the property is a large carpark for the exclusive use of shoppers and clients. The building has recently undergone a substantial refurbishment which has included repainting, retiling the courtyard area and reconditioning the lift.
The two shops for sale are in a prime location within the complex, with Unit K being in the corner position beside the main entranceway. Unit J is adjacent and fronts St Marys Rd. The shops have a large window frontage of about 17 metres and have dual access, via the main walkway into the complex as well as an entrance off St Marys Rd.
Ngo says Future Feet is something of a Ponsonby institution having operated in the building for nearly 20 years. Last year it undertook an extensive new fit-out and its premises are sectionalised into different areas including spaces for "first walkers", casual and sports shoes with a storeroom area at the rear. All staff are trained in the special requirements of fitting shoes to children's feet and customers also have access to podiatry advice.
Future Feet carries more than 30 imported and locally made children's shoe brands including well known names such as Clarks, Camper, Nike, Converse, Ecco and Keds. The retailer is opening a second store on the Corner of Nuffield St and Remuera Rd in Newmarket in August.
At the end of its existing term, Future Feet has two further four-year rights of renewal on each of the units.
Orr says a clause in the lease requires Future Feet to reinstate the wall between the two tenancies at the termination of the lease.
"This means the individual owners of the units won't face any additional capital expenditure in re-establishing them as two separate units." says Orr. "Both units also have their own entranceways."
He says the removal of the boundary wall between the two units met the tenant's requirements as does the reinstatement provision.
The complex in which the units are located has a number of other longstanding tenants including Radio Works, Dorothy Butler Children's Bookshop, Ponsonby Barbers, Harrison & Graham Optometrists. The 130sq m Children's Bookshop which has been operating out of the building since 1998 was recently sold at auction for $1,080,000 at a 6.6 per cent yield through Quinn Ngo and Nicolas Ching, of Bayleys Auckland.
