National branded tenant in sought after North Shore location
A split-risk investment property for sale in the popular Auckland suburb of Birkenhead represents a chance to acquire an asset of a type that seldom becomes available to purchase.
Anchored by New Zealand Post on the main floor and a long-established CrossFit studio on the lower floor, the property at 22 Mokoia Road is for sale through Colliers International’s North Shore team.
Marketing agent Sean Honeycombe says it offers excellent tenant covenant and the bonus of two income streams.
“Suburban retail properties are very attractive because of the lower barrier to entry, but the quality of tenants can be an issue.
“This property on central Birkenhead’s main retail strip of Mokoia Road offers the best of both worlds – it’s in an affordable yet popular location, and also offers superb tenant covenant.
“New Zealand Post has occupied the top level for many years and is currently in the middle of a nine-year term, with two further rights of renewal.
“The downstairs has been occupied since 2011 by Birkenhead CrossFit – an established and popular operator that was among the first CrossFit studios to open in New Zealand.
“The new owner will enjoy good cashflow now and a variety of options in future, with favourable zoning providing for future development opportunities.
“This is a great opportunity to secure an investment type that seldom becomes available to purchase.”
Honeycombe says it returns a net annual income of $116,675 plus GST and offers excellent growth potential. Market rental reviews are every three years, with final lease expiry dates in 2023 and 2029.
“The 846sq m two-level building occupies a 759sq m freehold site at the heart of Birkenhead, with prominent road frontage to busy Mokoia Road.
“It has an IEP rating of 78 per cent, which makes it suitable for corporate and government tenants.
“The rectangular site has Business Town Centre zoning, which provides for more intensive mixed-use development in the future.”
The building was constructed in 1961 with a rear extension in 1975. Its structure is of reinforced concrete frames with an on-grade concrete slab floor and a concrete first floor. The roof is of steel and timber framing with steel roofing.
Euan Stratton of Colliers says the property is superbly located, with plenty of on-site car parking.
“Birkenhead is a flourishing suburb of Auckland's North Shore, and this property is at its heart.
“Not only is it well positioned on the seaside of the main retail strip, some 50m from the main roundabout, but it is also across the road from the Highbury Shopping Centre.
“The shopping centre includes a Countdown supermarket, The Warehouse, the Birkenhead Library and many other retailers.
“Auckland's CBD is some 8km to the south, putting the property within 10 minutes’ drive.”
Birkenhead is well-served by public transport, including bus and ferry services. The motorway is easily accessible via Onewa Road, Esmonde Road and Northcote Road.
Get the latest commercial real estate insights and property news.