Popular property, settled tenant in high-growth area
A commercial building among a block of shops on a high-profile corner site in rapidly growing Glen Innes presents the opportunity to acquire a property with a strong tenant covenant, steady rental stream and long-term upside.
143 West Tamaki Rd, Glen Innes, is a 203sq m property on 223sq m of freehold land zoned Business– Neighbourhood Centre under the Auckland Unitary Plan.
The building is home to N’s Cafe, an established tenant on a long-term lease that runs until October 2025 with further rights of renewal in place.
The lease provides $72,000 plus GST in net annual rental income.
Colliers brokers Logan Roach, Ronal Prasad and Gareth Fraser have been appointed to market the property via auction at Colliers, 188 Quay St, Auckland, and online via Auctions Live at 11am on Wednesday 20 July, unless sold prior.
The property has been well maintained to a high standard and includes a commercial kitchen with indoor and outdoor seating options. It enjoys significant street exposure and convenient parking for customers.
While the existing lease runs through until October 2025, there are three further rights of renewal in place for three years each, leading to a final expiry of October 2034. There are CPI rent reviews scheduled for every two years capped at 3 per cent and market rent reviews on the renewal dates.
Roach says the property represents an outstanding opportunity. “The cafe has been in operation for more than 10 years and is a staple of the local community in a busy block of shops that enjoys a high volume of passing traffic.
“The ongoing rental increases provide growth for the future and favourable terms for the new owner, while the long-term lease exemplifies the strong tenant covenant that comes with this property.”
Prasad says the building is in a tightly held commercial location. “Glen Innes is quickly gentrifying with vast amounts of local investment in new housing and infrastructure, while neighbouring Glendowie provides an affluent residential catchment.”
Fraser says the property provides long-term upside.
“The Business–Neighbourhood Centre Zone applies to single corner stores or small shopping strips in residential neighbourhoods.
“Development is expected to be in keeping with the surrounding environment. The zoning of this property means it could be repositioned in the future, which will be highly appealing for buyers.”