Love My Bed Ltd, trading as the well-known furniture store Beds R Us, is at 3045 Gt North Rd, New Lynn. Photo / Supplied
Love My Bed Ltd, trading as the well-known furniture store Beds R Us, is at 3045 Gt North Rd, New Lynn. Photo / Supplied
A New Lynn furniture store in a prime location opposite the Lynnmall shopping centre is for sale with a long-term lease in place providing for annual rent increases of 3 per cent.
Bayleys Auckland agent Damien Bullick is marketing the property with his colleague Mike Adams and it will go up for auction at 11am on Wednesday June 27, unless sold earlier.
Bullick says the property — at Unit 2, 3045 Gt North Rd, New Lynn — comprises about 412sq m of retail space, which will provide the next owner with net annual rent of $151,178 from an eight-year lease.
The lease is to Love My Bed Ltd, trading as Beds R Us, which specialises in the sale of beds and mattresses and accessories, says Bullick.
It commenced in June 2016 and two five-year rights of renewal, if exercised, would take the final expiry through to mid-2034.
Beds R Us is a well-known and proven brand, which has been in business for over 21 years, having a total of 48 stores nationwide.
Bullick notes that the property, constructed in 1995 and extended in 2001, has an initial evaluation procedure (IEP) seismic assessment of 92 per cent of New Building Standard, comprising about 322sq m of retail space with the balance used as storage.
It is located on an underlying land area of 1796sq m zoned Business-Metropolitan Centre, which it shares with Unit 1, 3045 Great North Rd, an adjoining property occupied by another national retailer, Lighting Direct.
The property opposite Lynnmall comprises about 412sq m of retail space. Photo / Supplied
The two properties, which make up the body corporate, share the adjacent car park with space for 25 vehicles.
"This modern, hands-off investment opportunity has it all," says Bullick. "It is located in the sought-after New Lynn growth area opposite Lynnmall and near the New Lynn Transport Centre and is surrounded by other national and international retailers. There are six years to run on the current lease term and fixed annual 3 per cent rental growth further adds to the attractiveness of this strategic, bottom drawer investment."
Mike Adams says the property is in a high-profile position on Great North Rd, a main thoroughfare which runs from the Auckland CBD to New Lynn and beyond.
It is directly opposite one of Lynnmall's anchor tenancies, a Countdown supermarket with a large adjacent open air carpark. Other surrounding buildings largely comprise established strip retail properties and some office premises.
"Central New Lynn is a key growth location, which has been specifically identified under the Auckland Unitary Plan as an area for intensive commercial and residential development," says Adams.
"As such, much of the surrounding area including this property is zoned Metropolitan Centre, a very flexible zoning which permits a wide range of commercial and residential activities with an allowable build height of 72.5m."
Adams says concept plans for the neighbouring property at 3047 Gt North Rd are indicative of the sort of intensification that may be possible under the zoning.
The plans, drawn up by Leuschke Group, show potential to create a 21-floor redevelopment of the site over two towers comprising up to 312 residential units, with lower level commercial space.
In 2015, the NZX listed Kiwi Property expanded Lynnmall to incorporate an eight-screen cinema complex, an outdoor dining lane called Brickworks and additional speciality stores.
"Continuing apartment development in the nearby Merchants Quarter along with new food and beverage, retail and other commercial premises there are also contributing to the revitalisation of the town centre, attracting new residents and tenants who want to be part of the action," says Adams.
"There is likely to be considerable further development and intensification in central New Lynn, combing commercial, residential and community activities around the transport centre, which the council is keen to encourage."
