The 1191sq m unit-titled building is at 88-94 Great South Rd. Photo / Supplied
A fully-leased retail convenience complex with excellent exposure to Great South Rd in Takanini is for sale offering a substantial cashflow to its next owner.
Comprising an 1191sq m unit titled building at 88-94 Great South Rd, the property is generating net annual rental income of $242,000 from its six tenants.
It is being marketed by Piyush Kumar and Peter Migounoff of Bayleys South Auckland, and will go under the hammer on August 2 as part of Bayleys' latest Total Property portfolio auction, unless sold earlier.
Kumar says the six tenancies, which range in size from 70sq m to 520sq m, are occupied by a good mix of local tenants.
The largest tenant occupying just under half the space in the building is the Fruit n Spice supermarket, which has a five-year lease from mid-2016 with two five-year rights of renewal.
The other occupants are a bakery, cafe, takeaway, Indian restaurant and physiotherapist.
"The property is located in a strategic growth location, on Great South Rd close to Takanini motorway off-ramp," says Kumar.
"It is at the road front end of a large complex of other commercial and industrial units and therefore offers substantial exposure to high volumes of passing traffic. It also benefits from being next door to a BP service station which pulls in large volumes of vehicles."
The unit has an Initial Evaluation Procedure (IEP) seismic assessment of 90 per cent of New Building Standard (NBS). The complex it is part of was built in the 1970s with subsequent alterations and refurbishments.
Migounoff says the property has a range of lease expiries from 2018 to 2022, all with rights of renewal, which provides a good spread of risk and options for further tenant and rental growth for the next owner.
"The property has been a good income-earner for the current owner and has provided a great home for its tenants who, along with their customers, like the easy access and convenience of the location - which also has plenty of off-street parking," he says.
"It's also well positioned, in what will be one of Auckland's population growth areas with a massive amount of housing intensification either underway or planned."
Kumar and Migounoff, in conjunction with Bayleys South Auckland colleague Tony Chaudhary, have an additional retail property that will go under the hammer at the same auction on August 2, although this one is vacant.
It is a standalone property on a 397sq m site at 11 Hall Avenue in the Otahuhu Town Centre with a 269sqm building that was until recently occupied by a national bank
"This high-profile position would be suitable for a variety of owner occupier businesses or alternatively an investor who could secure a tenant for an attractive yield," says Kumar.
"Developers might also want to explore the land's development possibilities under its new Business Town Centre zoning. This is a generously proportioned, rectangular site with substantial redevelopment potential, that could offer an opportunity to take a commanding position in the popular Otahuhu town centre."
The building was constructed in the 1960s and is in a prominent position on Hall Avenue with easy access off nearby Great South Rd, says Kumar.
"A wide road frontage of over 15m provides great street appeal and presence for its occupant. The building has been well maintained and renovated over the years, with its roof replaced around four years ago."
There is also parking for five cars on under-used land at the rear of the property.