Neighbouring commercial investments on Barrys Point Road
Two neighbouring retail and office properties on a high-profile North Shore arterial route are being marketed for sale as an add-value investment opportunity with future upside.
Ryan de Zwart and Matt Prentice of Colliers International have been exclusively appointed to market 42 and 44 Barrys Point Road, Takapuna, Auckland.
The properties will be auctioned together as one lot at 11am on Wednesday 19 September, unless they are sold earlier.
The offering comprises two standalone mixed-use commercial buildings on separate freehold titles with a combined land area of 1,159sq m.
“These superbly located properties will appeal to investors, land bankers and developers looking for a split-risk investment with upside,” says de Zwart.
“Barrys Point Road is a highly sought-after location due its huge profile, proximity to Takapuna’s bustling town centre, and future redevelopment potential.
“Investors will be able to draw on income from two tenants, with the opportunity to add value by leasing the vacant space.
“Owner-occupiers will appreciate the ability to take vacant possession of one of the buildings, while drawing rental income from the other.
“Long-term investors, land bankers and developers will appreciate the immense potential of the Business Mixed Use zoning, which allows for intensive residential and commercial redevelopment.
“Rarely do investment and future redevelopment sites come to the market on Barrys Point Road, let alone two adjacent sites, making this an opportunity not to be missed.”
The properties are located on the eastern side of Barrys Point Road, within walking distance of Takapuna’s town centre, Takapuna Beach, and the Akoranga Northern Busway Station in Northcote.
“The sites offer easy accesses to the motorway system, which puts Auckland’s CBD less than 10 minutes’ drive away outside of peak times,” de Zwart says.
The fully leased property at 42 Barrys Point Road comprises a character wooden commercial building divided into a coffee bar and office.
“The main level boasts polished rimu floors, while additional storage is located beneath the building,” de Zwart says.
The property returns about $54,522 plus GST in rental income from one fixed-term and one casual tenant.
The main tenant is Coffix Limited, which operates a specialty coffee shop and cafe on the site under the Coffix brand.
The company signed up to a three-year lease in February this year, with two rights of renewal of three and two years each.
The lease returns $50,000 a year plus GST, with fixed CPI rental reviews to take place in 2020 and 2022. A market rental review is due to take place in 2024.
“Coffix started as a small kiosk on Auckland’s K’Road, making a name for itself with $2.50 fixed-price coffees,” de Zwart says.
“The company now operates numerous branches and franchises, and continues to deliver on its commitment to competitive pricing, fast and friendly service, and fresh, fair trade organic coffee.”
The remainder of the property’s income is from four of the 12 car parks at the bottom of the site, which are rented to neighbouring business The Dental Experts on a casual weekly basis.
The adjacent property at 44 Barrys Point Road comprises a two-level commercial building with a net lettable area of 317sq m.
Prentice says it is available with vacant possession, making it ideal for owner-occupiers or add-value investors.
“The property comprises a retail and showroom space on the ground floor, plus a workroom and storage area on the lower level.
“It features a glazed front facade and painted concrete block walls, with a pitched roof and ceiling.”
The property has six car parks and an area of land at the back that could be suitable for development, expansion or more car parks, with access via the neighbouring property at 42 Barrys Point Road.
Prentice says Business Mixed Use zoning across both sites allows for development up to 18m, which would be appropriate given the area’s amenity.
“The location and zoning make these properties well-suited to a mix of ground floor retail with apartments on the upper floors,” he says.
“Residents would be able to enjoy views over and access to a council reserve and an adjacent tidal wetland, located at the rear of the property.
“The properties also offer good proximity to quality education providers, with both AUT’s North Campus and Rosmini College located nearby.”
The combined sites are mostly rectangular in shape and relatively steep.
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