Eight Auckland Central retail units are for sale including spaces tenanted by a childcare centre, cafe and boxing gym.
A portfolio of eight retail units within one of the most intensive-developed apartment complexes in Auckland city— with tenancies ranging from a boxing gym and a childcare centre through to an Irish bar and restaurant — is on the market.
The units are located at street level within the SugarTree apartment precinct, consisting of three residential towers — Prima, Centro and Altro — occupying the city block bounded by Union, Cook and Nelson streets. When completed and tenanted, the towers will be home to 2000 residents.
The portfolio consists of five tenanted or fitted out premises and three vacant locations. The tenanted properties include:
• A 659sq m commercial indoor and outdoor space occupied by SugarTree Lane Preschool centre, generating net rent of $223,600 plus GST per annum, and on lease through to 2033 with three further five-year rights of renewal;
• A 43sq m food service premises occupied by Cookie Cafe, generating net rent of $31,500 plus GST per annum, and on lease through to 2022 with two further three-year rights of renewal;
• A 169sq m premises occupied by 9Round boxing gym, generating net rent of $86,710, and on lease through to 2028 with two further five-year rights of renewal;
• A 122sq m street-level indoor and outdoor hospitality premises previously occupied by Sally O'Rourke's Irish-themed bar/restaurant, but now vacant, and;
• A 55sq m retail premises occupied by Break Mart convenience store, generating net rent of $35,520 and on a lease through to 2023 with two further four-year rights of renewal.
The three vacant bare units are sized 50, 58 and 165sq m respectively and are ready for occupation.
All eight SugarTree properties are being marketed for sale at auction commencing 11am on August 7 through Bayleys Auckland. The portfolio features in Bayleys' latest Total Propertyportfolio magazine.
Bayleys Auckland salespeople James Chan and Damien Bullick said the permutation of properties within the portfolio offered both diversity and scale to potential investors.
Chan says the ground floor retail units are located around SugarTree's central courtyard walkway linking Union St to Nelson St. The units have new build standards ratings of 100 per cent, an A+ grading.
"The portfolio is structured to offer options for both investors, and business owner/occupiers seeking shell space," Chan says. "With vastly varying revenues from the tenanted properties — as dictated by their floor space — there is a broad profile of units to select from a return perspective."
Bullick says the commercial units have been designed to easily morph' across the retail and services spectrum, enabling tenants to offer non-competing services.
"The units within SugarTree Lane are adaptable and flexible from a floor plate and outlook perspective, so owners of these properties can have confidence that tenant appeal is broad and that the physical space is modifiable to any trend-driven market demand," he says.
"Under this dynamic, the remaining vacant sites could suit the likes of a dry-cleaners, hair and beauty salon, or liquor store."
SugarTree is located on the ridge overlooking Central Auckland's Victoria Quarter precinct, just a few hundred metres from Sky City's convention centre project, and close to both motorway routes and public transport links.
The development is one of several apartment blocks rising along Hobson and Nelson streets, including Union Green, Aura apartments, Zest apartments and Grace Victoria Quarter.