Split risk, long-time tenants in Ellerslie

The land and buildings of a multitenanted property in the popular Auckland suburb of Ellerslie are for sale and will pique the interest of buyers looking to acquire an asset with a passive income and strong tenant covenant.

171 Main Highway (pictured) has

891sq m of total net lettable area spread across five tenancies on a

2303sq m site. The property is zoned Business–Mixed Use and Residential– Single House.

Anchored by a BP service station, total annual rental income from the property is $306,800 plus GST and operating expenses. The weighted average lease term is 3.58 years.

Benefitting from significant road exposure, this highly visible corner property is strategically located near Ellerslie village and is a short walk from a range of food and beverage offerings. The site is only nine minutes from Auckland CBD, while the motorway network is easily reached via a nearby interchange.

Ellerslie train station is in walking distance and the area is well served by bus routes.

Colliers brokers Logan Roach and David Burley are marketing the property via auction on Wednesday May 29, unless sold prior.

BP occupies 135sq m and has three fuelling islands. Its lease runs until January 2029 and there is one further right of renewal for five years.

Ellerslie Automotive occupies two units spanning 566sq m of floorspace and recently began a new three-year lease that runs until 2027. There is one further right of renewal for three years leading to a final expiry of 2030.

Commercial kitchen operator iCook occupies a 78sq m unit and is in the middle of a five-year lease. A retail tenancy in Unit B, which spans 111sq m, has a lease until 2026 with one further right of renewal for three years.

All leases include some form of rent review in the coming years, most based on market rates.