A modern, standalone fully tenanted retail block in Auckland’s fast growing western suburb of Glen Eden is being described as a “great opportunity” by Colliers International brokers John Davies and Michael Bray.
The 1,511sqm property at 1 Glendale Road, is for sale by auction on 21 September 2016, unless sold prior. The property provides 680sqm of leasable area and comes with 33 onsite carparks. It returns $245,375 + GST net per annum, from two tenants.
Davies says with future development potential, the property suits passive investors or family Trusts seeking a solid strategic freehold asset. It is to be tenanted by Cash Converters and The Salvation Army, both on new leases commencing 1 November 2016.
“It sits on the busy corner of West Coast and Glendale roads right opposite Glenmall shops, with more than 20,000 cars passing daily and the train station only a short walk away. It’s conveniently close to Great North Road,” says Davies.
The site is surrounded by high-density residential developments and amenities such as the library, a medical centre, banks, the community centre, RSA, and sports clubs. “The new look Family Stores run by the Salvation Army are cutting edge design, featuring contemporary facades with fashionable, clutter free, well presented interiors worthy of any modern retail space,” says Bray.
The property comprises a regular shaped commercial block built in 2004 and construction generally consists of modern tilt slab concrete. Both tenants will be coming in to new, modern fitouts in keeping with their increasingly professional corporate images and branding.
The property is prominently positioned in Glen Eden’s business district, and has traditionally attracted good retail tenants whose customers enjoy the convenience of onsite parking.
“Glen Eden is a growth area, and its desirability as a location is increasing. The median household income of $86,000 per annum is above Auckland and New Zealand’s median. We know that almost a third of households in West Auckland earn more than $100,000 per annum,” Davies points out.
“The suburb has been suffering from an undersupply of retail space for several years, and with 60,000 new residents and 8,000 new jobs planned for the area, this kind of investment is only going to increase in value and returns,” Bray adds.
According to Davies the two tenants make the deal an exceptional investment opportunity. “Cash Converters is an icon in New Zealand, with 27 outlets and employs more than 300 people. They are well known for the brand prestige they’ve developed,” says Davies of the company, which also provides pawn broking and short term cash loans besides second hand goods.
The property is zoned as Town Centre under the Unitary Plan, which becomes operative in September. “Town Centre zoning is beneficial as it means the property is typically located on the main arterial road, which provide excellent public transport access,” Davies says.
The zone also provides for a wide range of activities, including commercial, leisure, residential, tourism, cultural, community and civic services.
“There is a range of possible building heights depending on the context. Provisions generally allow buildings of between four and eight storeys, although there may be special circumstances where other building heights are appropriate,’ Bray says.
“Increased height restrictions within these centres will facilitate increased office and residential living opportunities at upper floors,” Davies points out.