Two high-profile retail investment properties fronting one of the busiest roads on Auckland's North Shore are being offered to the market for the first time.
Developed in 2014, the freehold properties at 119-121 Onewa Rd, Northcote, comprise a standalone retail building with three tenants on a 1432sq m site, and a busy service station on a 2031sq m site.
The properties are available either individually, or together as a combined offering of 3463sq m with four income streams.
Colliers International has been exclusively appointed to market the properties for sale by deadline private treaty closing at 4pm on Wednesday May 1, unless one or both are sold earlier.
The agency's Shoneet Chand says it is the first opportunity to acquire the premises since they were developed by the highly regarded Wallace Development Company five years ago.
"These quality commercial properties have modern, low-maintenance construction, a prime location on the North Shore, and nationally recognised tenants signed to long leases.
"The smaller property, on the highly visible corner of Onewa Rd and Gladstone Rd, is tenanted by Tank, Pita Pit and Snap Fitness.
The three leases earn $226,266 in net annual rent.
"The larger property is tenanted by Z Energy on a 20-year lease from May 2014, earning $275,002 in net annual rent, with annual CPI rental reviews and market reviews every 10 years.
"Purchased together, the two freehold properties earn $501,286 in net annual rent. This not only provides the security of four different leases, but also gives the buyer flexibility to later sell one of the properties while retaining the other.
"With so many possibilities, this opportunity is sure to appeal to a range of investors with an eye for quality."
Colliers' Matt Prentice says the properties are superbly located the popular North Shore suburb of Northcote, only 4km from Auckland CBD. "Onewa Rd is a main arterial route linking to the Northern Motorway with an average of 26,000 vehicles passing the site on a daily basis," he says.
"The north and southbound motorway on-ramps are conveniently located only 1.2km to the east of the properties.
"The immediate area comprises a mix of light industrial and commercial uses with surrounding residential properties."
Prentice says the wider suburb of Northcote includes the peninsula of Northcote Point and the northern approaches to the Auckland Harbour Bridge. "It borders the suburbs of Birkenhead, Hillcrest and Takapuna to the west and north, and the waters of Shoal Bay, an arm of the Waitemata, to the south and east."
The retail property at 191 Onewa Rd comprises a 544sq m building with a common area shared by the tenants.
Tank occupies a 65sq m tenancy on a six-year lease earning $33,755.13 in net annual rent. The next two-yearly rent review is in August 2020. Two six-year rights of renewal extend the final lease expiry to August 2032.
Pita Pit occupies a 102sq m tenancy on a 10-year lease earning $42,418.24. Rent reviews are every two years, with the next in July 2020. Two five-year rights of renewal extend the final lease expiry to July 2034.
Snap Fitness occupies a 377sq m tenancy on a six-year lease earning $150,093.11, with market rental reviews. Three rights of renewal of six years each extend the final lease expiry to June 2038.
The service station property has a net lettable area of 1940sq m comprising a retail area, forecourt and ancillary services.
Z Energy has signed a 20-year lease with 15 years remaining. Three rights of renewal of five years extend the final lease expiry to 2034.