Unit with ducks in a row on High St

The property at 42C High St is occupied by the BBQ Duck restaurant. Photo / Supplied

A freehold retail investment property at the heart of Auckland City's High Street is for sale with a long-term lease offering built-in rent growth.

Tenanted by established Chinese restaurant operator Cafe BBQ Duck, the offering at 42C High St – featured in the latest Colliers Portfolio – comprises a 110sq m retail unit, two storage lockers and two sought-after CBD car parks.

Colliers International's investment sales brokers Gawan Bakshi and Tony Allsop are marketing the property, to be auctioned at 11am on July 18, unless sold earlier.

Bakshi says it is unusual to have the chance to acquire a freehold retail unit in one of central Auckland's most vibrant areas.

"Located at the base of the landmark Metropolis apartment tower, this property is well-positioned to capitalise on the ongoing revival of Auckland's midtown retail precinct and the CBD's growing residential population.

"Some new retailers have opened up on High Street in recent months, including leading fashion brands Timberland, Flo & Frankie, Gorman and AS Colour, and skincare retailer Aesop.

"The High Street precinct has also undergone significant urban renewal, with the award-winning revitalisation of Freyberg Place providing a focal point and meeting place for shoppers and residents.

"The unit for sale offers investors the long-term benefits of this vibrant location, along with strong tenant covenant from an established restaurant operator. Here's a superb opportunity to secure a freehold investment at the heart of a sought-after Auckland retail strip."

Bakshi says Cafe BBQ Duck Limited is signed to a seven-year lease returning $92,500net in annual rent, with a seven-year right of renewal.

Fixed rental increases of $2,500 a year to December 2020 provide guaranteed rental growth, while a market rent review is due to take place in December 2022.

"The property comprises a main retail unit with frontage to High Street. The two storage units are located on level seven of the Metropolis building, while the car parks are also located in the building."

Allsop says the wider midtown retail precinct – which includes Fort Street, O'Connell Street, Elliott Street and a number of vibrant laneways – is popular with students, tourists, CBD office workers, shoppers and residents.

"Pedestrian-orientated activities such as cafes, restaurants and high-end fashion boutiques predominate," he says.

"The area's distinctive character comes down to its mix of architectural styles, open public spaces and shared pedestrian and vehicle accessways.

"Nestled between Albert Park and bustling Queen Street, the High Street precinct is close to Britomart, the cruise ship and ferry terminals, both Auckland university campuses, and private tertiary providers.

"Abundant cultural and entertainment amenities are also located nearby, including the Auckland Central Library, Auckland Art Gallery, numerous theatres, and SkyCity.

"Along with plentiful public transport, the precinct is well serviced by parking on the surrounding streets and in multiple public car park buildings in the area."

Allsop says the area is set to get even better public transport amenity once the City Rail Link is completed. This will create a new station, Aotea, with entrances at both nearby Wellesley and Victoria streets.