Shore retail property is one of a rare breed
Agents say a split-risk investment property, for sale in Auckland’s popular Birkenhead suburb, deserves more than a brief glance.
Colliers International’s Sean Honeycombe says 22 Mokoia Rd, is anchored by NZ Post on the main floor, with a long-established CrossFit studio tenant on its lower level.
Honeycombe says suburban retail properties are very attractive because of the lower barrier to entry, but the quality of tenants can be an issue.
“So this one on central Birkenhead’s main retail strip offers the best of both worlds; it is in an affordable yet popular location, and also offers superb tenant covenants with the bonus of two income streams.
“NZ Post has occupied the top level for many years, currently being near the middle of a nine-year term, with two further rights of renewal.”
He says the downstairs has been occupied since 2011 by Birkenhead CrossFit, an established and popular operator that was among the first such 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.”
The property is for sale by deadline private treaty closing at 4pm on Tuesday 16 April, unless it sold earlier.
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 Rd.
It has a seismic rating equalling 78 per cent of the New Building Standard, making 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 — constructed in 1961 with a rear extension built in 1975 — has reinforced concrete frames with an on-grade concrete slab floor and a concrete first floor. The steel roof is supported by steel and timber framing.
Honeycombe’s colleague, Euan Stratton 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,” he says.
“This property is well positioned on the seaside of the main retail strip — being only about 50m from the main roundabout — and it sits just across the road from the Highbury Shopping Centre. This includes a Countdown supermarket, The Warehouse and Birkenhead Library.