Two freehold commercial properties are for sale within the new Pohutukawa Coast Shopping Centre at coastal Beachlands, about 40kms by road southeast of Auckland City.
"The properties are designated as Block A and Block B2, and will be sold together or separately," says John Binning of JLL who is marketing the duo at 129 Beachlands Rd for sale by expressions of interest closing at 4pm on Wednesday October 10 – unless they sell earlier.
Block A is a 1613sq m site fronting onto busy Beachlands Rd and is occupied by a building with a floor area of 1296sq m. It is tenanted by Beachlands Medical Ltd occupying the first and second floors, paying $390,912 per annum in rent.
Block B2 of 743sq m hosts a building with a total floor area of 1027sq m and comprises a mix of retail stores, offices and a gymnasium. Tenants include Domino's Pizza, Harcourts Realty, Allfit 24/7 Fitness, Beachlands Management office and You at Best. This block generates annual rent of $304,152 and benefits from exposure to Kouka Rd and Mahotonga Avenue.
The tenants in Block B2 are on lease terms that range from six to 12 years, with all the leases commencing in 2017. The longest lease belongs to Allfit Limited, which occupies the largest retail space of about 533sqm.
The weighted average lease term (WALT) for Block A is around eight years while for Block B2 it's closer to nine years.
Binning says the specialty retail stores in Block B2 have potential for rent growth.
"The annual income from these two prominent properties totals $695,066. They're zoned Business – Local Centre, which is significant because there's a limited supply of commercially-zoned sites in this area," says Binning.
He says the Pohutukawa Shopping Centre's anchor tenant is Countdown Supermarket, which attracts regular custom to the centre.
"The centre has been well planned and constructed to aid in the growth of the area with retail stores and the medical centre providing much needed services to the local community. The demand is evident in the fact there's very little available vacant retail space," says Binning.
The properties are located on the south eastern outskirts of Beachlands, a growing outer suburb of Auckland, where the number of residents is predicted to grow from 7870 in 2017 to 12,050 in 2043 based on a medium growth scenario - an increase of 53 per cent.
Binning says Beachlands is a 'family friendly' area with a high number of children between the ages of 5-19 years and also adults between the ages of 35-55 years.
Residents have an average personal income of $41,000 per annum and household income of $101,600 pa, which is higher than the Auckland regional average of $29,600 and $76,500 respectively. The area also has household ownership of 78 per cent, compared to the Auckland regional average of 62 per cent.
Regular commuter ferry services run from Pine Harbour to downtown Auckland taking about 30 minutes; while Auckland Airport is a 35 minute drive away and Botany Town Centre is 20 minutes by car.
"Over the past 10 years the area has seen a surge in residential development," says Binning. "There are many reasons to move here including attractive, safe beaches along the Pohutukawa Coast, Pine Harbour marina, and accessibility to other areas of Auckland via the southern motorway."
Beachlands was originally subdivided as a recreational destination in the 1920s and grew as a weekend and holiday retreat for Aucklanders from the 1950s.
"However, more people are choosing to live there and commute to work by road or ferry resulting in rapid growth. Residential subdivisions like Pine Harbour and Spinnaker Bay are home to many residents, with further construction taking place to the south of the township at present."
Binning says more than 9000 cars travel along Beachlands Rd each day during the working week and close to 7000 cars pass the properties each day on the weekend.