Standalone retail building with three tenants and a busy service station on the market
Two high-profile retail investment properties fronting one of the busiest roads on Auckland’s North Shore are being offered to the market for the first time.
Developed in 2014, the freehold properties at 119-121 Onewa Road, Northcote, comprise a standalone retail building with three tenants on a 1,432sq m site, and a busy service station on a 2,031sq m site.
The offerings are available either individually, or together as a combined offering of 3,463sq m with four income streams.
Colliers International has been exclusively appointed to market the properties for sale by deadline private treaty closing at 4pm on Wednesday 1 May, unless one or both are sold earlier.
Investment Sale Director Shoneet Chand says it is the first opportunity to acquire the premises since they were developed by the highly regarded Wallace Development Company five years ago.
“These quality commercial offerings boast modern, low-maintenance construction, a prime location on Auckland’s North Shore, and nationally recognised tenants signed to long leases.
“The smaller property, on the highly visible corner of Onewa Road and Gladstone Road, is tenanted by well-known brands Tank, Pita Pit and Snap Fitness. Three leases return some $226,266 in net annual rent.
“The larger property is tenanted by Z Energy on a 20-year lease from May 2014, returning $275,002 in net annual rent, with annual CPI rental reviews and market reviews every 10 years.
“Purchased together, the two freehold properties return some $501,268 in net annual rent. This not only provides the security of four different leases, but also gives the buyer flexibility to later sell one of the properties while retaining the other.
“With so many possibilities, this opportunity is sure to appeal to a range of investors with an eye for quality.”
Colliers International Director Matt Prentice says the properties are superbly located the popular North Shore suburb of Northcote, only 4km from Auckland CBD.
“Onewa Road is a main arterial route linking to the Northern Motorway with an average of 26,000 vehicles passing the site on a daily basis.
“The northbound and southbound motorway on-ramps are conveniently located only 1.2km to the east of the properties.
“The immediate area comprises a mix of light industrial and commercial uses with surrounding residential properties.
“The wider suburb of Northcote includes the peninsula of Northcote Point and the northern approaches to the Auckland Harbour Bridge.
“It is surrounded by the suburbs of Birkenhead, Hillcrest and Takapuna to the west and north, and the waters of Shoal Bay, an arm of the Waitemata, to the south and east.
“As well as the motorway and regular buses, there is a ferry service from Northcote Point, near the northern end of the Harbour Bridge.”
The retail property at 191 Onewa Road comprises a 544sq m building with a common area shared by the tenants.
Tank occupies a 65sq m tenancy on a six-year lease returning $33,755.13 in net annual rent. The next two-yearly rent review is in August 2020. Two six-year rights of renewal extend the final lease expiry to August 2032.
The family-run New Zealand company has more than 70 stores across New Zealand, from Whangarei to Dunedin, serving fresh juices with no preservatives.
Pita Pit occupies a 102sq m tenancy on a 10-year lease returning $42,418.24. Rental reviews are every two years, with the next in July 2020. Two five-year rights of renewal extend the final lease expiry to July 2034.
Pita Pit in New Zealand was set up in 2007 and it now has more than 100 stores nationally, with more than 80 franchisees and upwards of 1,200 employees. The company serves fresh, hand-made wraps and salads.
Snap Fitness occupies a 377sq m tenancy on a six-year lease returning $150,093.11, with market rental reviews. Three rights of renewal of six years each extend the final lease expiry to June 2038.
Snap Fitness was started six years ago and now has more than 12 gyms across Auckland, providing high-quality equipment and friendly service where gym members are greeted by their first names.
The service station property at 121 Onewa Road has a net lettable area of 1,940sq m comprising a retail area, forecourt and ancillary services.
Z Energy is signed to a 20-year lease with 15 years remaining. Three rights of renewal of five years each extend the final lease expiry to May 2034.
Z Energy is a publicly listed company on the New Zealand and Australian stock exchanges. It supplies around 43 per cent of New Zealand’s total fuel needs and operates the Z and Caltex retail brands.
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