A retail investment property in the growth hub of Flat Bush-Ormiston, south east of Auckland city, is on the market with Colliers International.
Unit A, 186 Te Irirangi Dr, is occupied by a liquor outlet on a long lease. The property is being marketed for auction sale by Colliers agents Gareth Fraser, Charlie Oscroft and Alan Pracy and will go under the hammer at 11am on August 26 2015 at 151 Queen St, Auckland.
With the property generating $122,340 in annual net rental income from the lease to Liquor Legends, it sits within a popular price bracket for individual investors, says Fraser.
“Smaller retail investment properties have wide appeal owing to their easily-understood fundamentals, and the market is now showing real strength especially in fast-growing locations.
“With the low borrowing rates that are available, we are seeing many first-time buyers enter the commercial property investment market through purchasing strongly-tenanted and well-located retail properties. In many cases, these buyers already own residential property and small retail investments like this are the perfect opportunity to diversify,” he says.
Oscroft says that with five years remaining on the current lease term and the potential for income growth through a rent review, the unit presents a sound investment.
“For the first-time investor in commercial property, this property ticks all the boxes and constitutes an easy to manage, hassle-free investment,” he says. “It would be ideal for people seeking to diversify into commercial property with an income-generating holding which can be acquired at a price that is accessible for many buyers in the market.”
Liquor Legends was established in 2004 and has four outlets around Auckland. The local operator’s lease to the modern, 586sq m unit extends to June 2020, with the right to renew for a further eight years.
It has been in this location since 2013, with the unit having housed liquor stores (under other brands) since 2003, Pracy says.
The property, which includes ample off-street customer car parking, is located within a popular local commercial centre which includes a Z service station, Super Value supermarket, a pharmacy and several other retail and service outlets, Fraser says.
“The centre is well-established in this location and is a convenient stop for local residents, with its location on a main local road and ample parking provided.”
The Flat Bush-Ormiston area is one of the fastest-growing suburbs in Auckland. The property therefore presents an excellent opportunity to buy into the area and benefit from expected future growth, says Oscroft.
“Ormiston is a centre of residential and commercial development and is set to become an entirely new town, with the population exceeding 125,000 people by 2031. This is expected to provide a significant boost for property values in the surrounding area.”
Ormiston Town Centre is being progressively developed between 2015 and 2022, with the surrounding suburban areas expected to rapidly develop to accommodate ‘spill over’ businesses that will service the requirements of Ormiston residents and provide employment opportunities, Oscroft says.
“Given the growth forecasts for the area, an established, well-located property like this one will be considered an excellent chance for buyers to get in now and secure an investment property before the expected value increases take hold.”
The site has excellent access to the Southern Motorway via nearby interchanges, a factor which has made the surrounding locality desirable to businesses and residents, he adds.