A big freehold property, in the form of a SuperValue supermarket, has come onto the market in Auckland's southeastern suburb of Flat Bush.
"This property has a lot of boxes ticked," says Tommy Zhang of JLL who is marketing 130 Dawson Rd for sale through an expressions of interest campaign closing at 4pm on Thursday September 28.
Zoned Local Centre, the high-profile 2140 sqm site is exposed to over 9500 vehicles per day during the working week and has a secondary access via Te Irirangi Drive.
"The property has successfully traded as a supermarket since it was built in the 1990s and, although the brand of the supermarket has changed during this time, the store's patronage has increased along with rapid population growth fuelled by new subdivisions in Dannemora and Flat Bush," Zhang says.
He says a small Fijian takeaway store and an on-site ASB ATM are included in the offering which generates total annual rent of $390,839 plus GST per annum from leases that provide for three-yearly reviews.
"With a strong 30-year lease in place to the supermarket, as a subsidiary of Progressive Enterprises, there are few investment properties like this and its sale is expected to attract wide interest," Zhang says.
"The lease commenced in 2010 and has a 15 plus 15-year right of renewal, so this property promises to give its new owner a good passive income. Consumer Price Index reviews and a hard ratchet clause also present a strong chance for rental growth," says Zhang.
"Previous sales of supermarkets have been rare and highly sought-after with similar properties in the Auckland region showing stable annual cash flows."
As part of a multi-unit development, the supermarket and takeaway store sit among other small shops and businesses and, as part of a body corporate, share access to 115 on-site car parks.
"The buildings could benefit from redecoration, but they are free from any compulsory requirement for earthquake strengthening with a New Building Standard of 71 per cent," Zhang says.
"The tremendous amount of residential development has made Flat Bush a popular place to live giving increased custom to many local businesses. The property sits in an established residential location and has easy access to the motorway and bus services that run through the area."