North Shore retail investment has resource consent for two apartments
A split-risk retail investment with approved resource consent for a first-floor apartment redevelopment is for sale in sought-after Milford on Auckland’s North Shore.
Colliers International has been appointed to market the freehold property at 83-85 Kitchener Road for sale by auction at 11am on Wednesday, 8 November, unless sold prior.
Mike Ryan, who is marketing the property with fellow Colliers International North Shore brokers Euan Stratton and Matt Prentice, says it is an excellent add-value investment opportunity.
“With two ground floor retail tenancies returning $98,000 a year and approved resource consent for two apartments upstairs, this is an ideal chance to take advantage of the vendor’s hard work and planning,” he says.
“The successful bidder can reap the rewards of the Auckland’s hot apartment market by completing the residential development to the vendor’s plans, or by converting the first floor to a single large apartment.
“The first floor could also be converted to an office, taking advantage of the property’s superb location on Milford’s busy main retail strip.”
Ryan says it is “an ideal opportunity for add-value investors, developers or owner-occupiers looking to occupy the first-floor space”.
The property has a net lettable area of 295.7sq m on a 261sq m fee simple site.
Ryan says it offers 12.2m of excellent road front exposure to tightly held Kitchener Road, which is the main retail strip in Milford.
“The two ground floor retail units are fully tenanted by popular food businesses Soul Sushi and Talay Thai Restaurant,” he says.
“A right of way offers access to four designated car parks at the rear of the building, while a recessed street front entrance opens to stairs leading to the 140.2sq m first floor.”
Stratton says Soul Sushi occupies a functional, rectangular 76.3sq m shop with modern frontage and display windows, and a recessed entrance.
The rear of the building houses the kitchen and amenities, and offers access to the rear car park.
“Soul Sushi offers a mouth-watering range of Japanese food including noodle and soup dishes, salads, sushi and donburi bowls,” Stratton says.
“Open for lunch seven days a week, it is a popular option for nearby businesses and locals alike.”
Soul Sushi Milford Limited is signed to a six-year lease with almost five years remaining, plus two rights of renewal of four and two years’ each.
Stratton says Talay Thai occupies a 79.2sq m tenancy with character timber joinery on the street frontage.
An angled recess entrance opens directly into the compact yet functional restaurant, while the kitchen, preparation area and amenities are located at the rear.
Talay Thai is signed to a four-year lease, with just under three years remaining, plus two rights of renewal of four and two years’ each.
The ground floor entrance to the first floor is recessed between the two retail tenancies, leading to a straight flight of stairs.
Stratton says resource consent has been approved for a pair of two-bedroom apartments on the first floor, which could be constructed to the successful bidder’s specifications.
“Once completed, the apartments could offer a potential rental income of $50,000 to $60,000 a year,” he says.
Prentice says Milford’s established commercial centre primarily serves the relatively wealthy suburbs of Westlake, Milford, Forrest Hill and Crown Hill, as well as the greater North Shore area including Takapuna.
“The Milford demographic has changed significantly in the past ten years with a younger population and a growing number of high net worth families being attracted to the area,” he says.
“This change is being reflected in the commercial properties in the area with many refurbishments being undertaken to rejuvenate the area.”
Prentice says the property for sale is in the block adjoining the Milford shopping centre, which was extensively renovated recently to include a supermarket, food court and a wide variety of stores including high-end fashion stores.
“The owners now plan to extend the centre with 20 new shops and 121 apartments to be known as The Milford,” he says.
“The development provides ample parking and has created an additional focus on Milford, drawing more potential customers to the area, including the retail strip where the subject property is located.”
Prentice says the property for sale is at the southwestern most end of the established Milford retail district.
“This retail strip has become the fastest growing food alley in Milford with a wide variety of restaurants and cafes within a 50m radius. 83-85 Kitchener Road is situated on the northern side of the road, approximately 50 metres from the intersection with Milford Road and Dobson Avenue.”
Surrounding development is predominantly low-rise commercial buildings, with a Challenge service station two properties away.
Directly opposite is a similar mix of buildings, and includes a recently completed mixed use development with retail, upper-level apartments and terrace houses.
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