Diversified Albany village investment

Diversified Albany village investment  hero

A fully tenanted, split-risk commercial investment property is for sale in the heart of the North Shore’s tightly held Albany village.

Well located in a growth area with easy motorway access, the property at 235 Dairy Flat Highway, Albany, Auckland, comprises a standalone 428sq m building on an 809sq m freehold site.

The diversified asset provides four income streams underpinned by two longstanding anchor tenants, returning $138,377 plus GST in net annual rent.

Business Local Centre zoning allows for future redevelopment of up to 18m in height, providing a new owner with long-term options to maximise the value of the underlying land.

Colliers International has been exclusively appointed to market the property for sale by way of deadline private treaty closing at 4pm on Wednesday 26 August, unless sold prior.

Shoneet Chand, Director of Colliers North Shore, says investment properties in Albany village rarely come to the market for sale.

“After well over a decade of positive ownership, the vendor has decided to pass the baton to new owner. This presents an exceptional opportunity for an astute investor to acquire a fully tenanted asset located on the edge of the fast-growing Albany commercial and residential basin.

“The investment is anchored by a popular restaurant and bar, alongside an established laundromat business, with two other commercial tenants providing a diversified income stream.

“Built in the 1980s, the property comprises a two-level commercial building that has been well cared for and recently repainted.

“The property has easy access from both the front and rear, with 16 on-site car parks. A retail presence to both frontages provides good exposure to passing traffic, while the central location provides easy access to both the Northern Motorway and Albany Expressway.

“The location, zoning and split-risk income make this a superb long-term investment for an owner seeking passive income now, and future redevelopment potential in the future.”

Anchor tenant Toucan Bar pays $63,231.48 in net annual rent on a 12-year lease with rental reviews every two years. A six-year right of renewal extends the final expiry date to May 2033.

Albany Laundry pays $47,614 in net annual rent on a nine-year lease expiring in October 2026, with rental reviews every two years.

Two travel businesses occupy the remaining two tenancies, paying a combined $27,531.52 in net annual rent.

The property is located only 19km from Auckland’s CBD and within easy walking distance to New Zealand’s fourth largest shopping centre and major new residential developments.

Matt Prentice, Director at Colliers North Shore, says Albany has been identified by Auckland Council as one of three key growth nodes outside of the city centre.

“Albany will be a focal point for future employment, commercial and social activity as Auckland continues to grow and develop.

“It already benefits from excellent access to the transport network including the Northern Motorway and the Northern Busway and its associated park and ride facility.

“These connections will be improved greatly as work continues on the $700 million Northern Corridor project, which involves widening State Highway 1 in both directions, a new connection to SH18 to link the motorway with the Western Ring Route and airport, and safe new routes for bus users, pedestrians and cyclists.

“This connectivity will continue to attract further mixed-use and commercial developments in the Albany area.”

Albany is home to New Zealand’s fourth largest shopping centre – Westfield Albany, just 1 km away – and Massey University, which is one of Auckland’s largest tertiary education providers.

Local businesses in the area include The Warehouse, Pak’NSave, Albany Toyota, PlaceMakers and a Quest Hotel, among others.

“These businesses are all supported by a strong local residential catchment and local aged care centres, and provide a main centre for the wealthy nearby community of Coatesville,” says Prentice.

“Further developments in the area include the recently completed National Support Centre for Mitre 10 as well as the new 200-unit Rose Garden apartments, plus numerous retail, office and commercial developments.

“The property for sale offers a superb chance to invest in this high-growth location.”


Related Experts

Shoneet Chand

Director

Auckland North

Shoneet is a Director at Colliers International and specialises in Investment & Development Sales over $2m across the wider Auckland region. Over the past 10 years he has been one of the most successful investment sales brokers in Auckland with a track record of significant sales second to none. He has had considerable experience in dealing with international purchasers and has completed a number of deals with investors out of the Middle East, Asia and Europe.

Shoneet was the top broker in his market for both 2014 and 2015 & once again placed in the top 10 brokers nationwide for Colliers in 2016.

In 2017, he transacted over $250 million of property, did 73 deals and was ranked 2nd in New Zealand.

In 2018, he was a finalist in the Commercial & Industrial Salesperson of the Year category which is judged nationwide across all agencies and again was the top broker in his market, being involved in over $300m of unconditional sales.

In 2019 he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million of settled sales in the calendar year. 

Notable Transactions Include;

  • 2-4 Fred Thomas Drive, Takapuna - $60,850,000
  • 33 Corinthian Drive, Albany - $50,500,000
  • 279-301 Lincoln Rd, Henderson – $38,000,000
  • Todd Industrial Park, Wellington - $33,000,000
  • 229 Dairy Flat Highway, Albany - $33,000,000
  • ANZ Centre, Albany - $27,340,000
  • The Warehouse, Albany - $26,400,000
  • 11 Coliseum Drive, Albany - $26,700,000
  • Farro Fresh/ASB, Constellation Drive - $25,500,000
  • 5 The Warehouse Way, Northcote - $19,000,000
  • Noel Leeming, Wairau Park - $19,000,000
  • 16 Dinning Road, Riverhead - $16,500,000
  • 151 Lincoln Road, Henderson - $15,250,000
  • Westpac Albany - $15,150,000
  • 7-21 Kawana Street, Northcote - $14,998,000
  • PlaceMakers, Albany - $14,000,000
  • 550 Te Irirangi Drive, East Tamaki - $14,200,000
  • 44 Arrenway Drive, Mairangi Bay - $13,117,116
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Matt Prentice

Director

Auckland North

Matt joined Colliers International in 2006 with a focus on mid to upper end industrial & investment transactions.  Specialising in tenanted investments, occupier representation through to vacant land / building sales on the North Shore, Matt was promoted to a North Shore Director in 2015.

In 2011 and 2012 Matt was awarded the "Golden Gavel" for Colliers New Zealand as the most successful auction sales broker across Colliers New Zealand. Matt has been the number one North Shore sales and leasing broker, 2011, 2012 and 2013.  In 2012, was a top 20 performer across Colliers New Zealand and has over $550 million of sales since joining colliers International.

In 2013, Matt was in the top 10 Highest Performing Brokers Nationwide and in 2014, he had a record year completing more than 50 transactions, and  finished in the top 10% of brokers in New Zealand.

In 2015, Matt completed over 60 transactions, more than any broker North of the Bridge, again finishing in the Top 20 brokers in New Zealand.

In 2016, Matt had a record year finishing top 10 in the country and was the top broker on the North Shore. 

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