A fully leased, split-risk investment property in the heart of Ellerslie is for sale by auction, presenting an opportunity to secure diversified income from a strategic freehold asset in one of Auckland’s most desirable suburbs.
Centrally located on the main commercial strip of Ellerslie Village, the property at 129 Main Highway comprises two buildings on a 458sq m site with Business Town Centre zoning.
It is occupied five tenants, three on newly signed leases, with a weighted average lease term of four years. The leases return $126,493 in net annual passing income.
Colliers International’s Auckland Investment Sales team has been exclusively appointed to market the property for sale by auction at 11am on Wednesday 2 December, unless it sells earlier.
Gareth Fraser, Auckland Director of Investment Sales at Colliers, says the property boasts many desirable attributes that are keenly sought in the current market.
“This is an outstanding opportunity to acquire a diversified freehold investment with split-risk income, a favourable weighted average lease term and a very strong tenant mix.
“The property is prominently positioned at the centre of Ellerslie Village, with excellent profile to the bustling main retail strip.
“It draws on a large catchment that includes residents of the affluent suburb of Ellerslie and office workers from the surrounding business parks.
“The locale offers a superb mix of amenity and connectivity, with regular train services at the nearby Ellerslie Train Station, superb proximity to the Southern Motorway, and an abundance of shops, cafes and restaurants and good local schools.
“The property’s appeal is bolstered by the underlying value of the land, which is generously zoned to allow for future mixed-use redevelopment of up to 13m in height.
“This premium offering is sure to appeal to investors or land bankers seeking passive split-risk income now, with the ability to add substantial value over the longer term.”
Charlie Oscroft, Investment Sales Director at Colliers, says the property’s two buildings provide a net lettable area of 320sq m.
“Fronting the main retail strip is a two-storey building with two ground floor retail tenancies, which are separated by a stairwell providing access to two first floor commercial tenancies.
“The building was constructed in 1958 and has benefited from high-quality internal improvements since.
“To the rear is an older single-storey building that has also been improved since construction. Access is via a driveway to the eastern boundary that also provides access to the tenant car parks.”
Logan Roach, Investment Sales Broker at Colliers, says both ground floor retail tenancies are on new leases commencing in July and August this year.
“Inspire Real Estate, which recently relocated from nearby Marua Road, is a licensed real estate agency. It is signed to a new five-year lease with a right of renewal for a further four years.
“Temptation Indian Cuisine specialises in authentic and traditional Halal Indian food, with takeaways and deliveries to the surrounding residential catchment. It is signed to a new six-year lease with a six-year right of renewal.”
Roach says the first floor is divided into an office and a retail unit that is currently fitted out as a health spa.
“The office tenant is Mackenzie Properties, which specialises in land subdivision and commercial buildings in the South Island’s Mackenzie Country.
“The retail tenant is Revive Spa and Thai Massage, which offers a range of relaxing health treatments including hot stone massages.
“Both tenants commenced their leases in July 2019, with final expiries in and 2025 and 2027 respectively.”
The rear tenancy is occupied by Epsom Funeral Home, which was established in 1979 and services all areas of Auckland.
The family-owned New Zealand company is on a new three-year lease from September, with two rights of renewal extending final expiry to 2029.