Prime position on busy Lunn Ave
A multi-level building with three established tenants in the popular retail precinct of Lunn Ave, Mt Wellington, offers the opportunity to secure a top-tier split-risk investment.
The property at 53 Lunn Ave offers 1538sq m of total net lettable area on a 3194sq m freehold site zoned Business–General Business under the Auckland Unitary Plan.
The tenants include a well-patronised local gym, bike shop and plumbing trade store with leases that all have final expiry dates of 2029 or 2031. The total annual rental income is $511,448 plus GST and operating expenses.
Easily accessible from Lunn Ave, the property was constructed in 2007 and has 45 carparks. The busy location is surrounded by some of the biggest names in the retail sector, including McDonald’s, Mitre 10 and New World, among others.
Nearby suburbs include Ellerslie, Meadowbank, Stonefields and St Johns, giving the wider Lunn Ave retail hub an affluent catchment of customers.
Colliers brokers David Burley, Kris Ongley and Logan Roach are marketing the property for sale via deadline private treaty closing at 4pm on Wednesday, November 1, unless sold prior.
The ground floor is split between Mico Plumbing and Evo Cycles. Mico Plumbing’s tenancy covers 594sq m of floor area and includes a showroom, trade sales area, storage and amenities. They have access to 20 carparks.
Mico’s lease was recently renewed and runs until March 2029 with 2 per cent annual rental increases.
Evo Cycle’s tenancy spans 568sq m and is largely made up of a showroom and a small canopy. They have access to 16 carparks and their current lease, which includes annual 3 per cent increases and a market review on renewal, runs until February 2025 with one further right of renewal for six years.
Xcel Fitness occupies the first-floor tenancy that spans 410sq m. They have access to nine carparks and their lease has a final expiry of January 2029 and includes 2 per cent annual increases.
Burley, Auckland director of investment sales at Colliers, says Lunn Ave is one of central Auckland’s premium large-format retail destinations and this property offers the chance to acquire a prime asset with a strong tenant covenant.
“The occupants of the property are all wellestablished operators and are committed to long-term leases,” Burley says.
“The consistent rental growth on offer through annual increases will be highly appealing for buyers.”
Lunn Ave is readily accessible from the Auckland motorway network and there are nearby public transport links, while Auckland’s CBD can be reached in approximately 15 minutes.
For further shopping options, Sylvia Park is nearby, and there is a host of food and beverage offerings along Lunn Ave.
Ongley says the area is tightly held, owing to its surrounding catchment of consumers and accessible location.
“The suburbs bordering Lunn Ave have undergone significant growth during the past 15 years with the development of Stonefields being a notable addition,” Ongley says.
“This modern premises has been meticulously maintained and presents in magnificent condition. It also enjoys exceptional road exposure and is highly visible to the strong volume of passing traffic.”
Roach says the Lunn Ave property has compelling underlying investment fundamentals, which makes it an outstanding purchasing opportunity.”