A large-scale, mixed-use property on Auckland’s North Shore is being presented to the market for sale and offers buyers the opportunity to acquire a high-profile asset with solid holding income and significant future development potential.
229 Dairy Flat Highway, Albany, has 6720sq m of total net lettable area spread across a 1.04ha landholding that is zoned business-local centre zone under the Auckland Unitary Plan.
The freehold development includes four buildings. Key tenants Quest Albany, Massey University and Auckland Council are responsible for 92 percent of the $2,176,666 plus GST and operating expenses of net annual rental income the property generates. The additional tenancies are occupied by local retailers.
There is convenient access to the property with the Albany Expressway to the west and the Northern Motorway nearby. There are also major residential developments in the surrounding area, while Westfield Albany can be reached via an easy walk.
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Albany has been identified by Auckland Council as a focal point for future employment and commercial and social activity. The Northern Busway has also improved the transport infrastructure in the area.
Colliers directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm, June 25, unless sold prior.
Quest Albany occupies a four-level building that has 38 apartments ranging in size from 26sq m studios through to 74sq m two-bedroom configurations. Their existing lease runs until August 2038 and has one eight-year right of renewal, leading to a final expiry of August 2046.
Massey University occupies a building that used to be a purpose-built supermarket but has since been transformed into a design studio and workshop. There is scope for this structure to be redeveloped in the future.
The tertiary education provider also leases two levels of a three-storey office building that is jointly tenanted by Auckland Council. Massey’s leases run until January 2026 with one more right of renewal for two years, meaning this significant portion of space could be vacant in the near future.
The fourth and final building is a single-level structure that was utilised by Auckland Council but is currently vacant. The property includes 142 on-site car parks in total.
Chand, director of investment sales at Colliers, says there is considerable potential to develop or add value at the property.
“With the leases of Massey expiring soon these buildings could be repositioned into an apartment development or the new owner may choose to optimise the tenancy mix and generate further rental income,” Chand says.
“Such decisions can be made with the underlying tenant covenant of serviced apartments provider Quest who have a strong track record in the sector and a lengthy lease in place.”
As noted in the Unitary Plan, the business-local centre zone applies to a large number of small centres throughout Auckland. The centres are generally located in areas of good public transport.
The zone primarily provides for the local convenience needs of surrounding residential areas, including local retail, commercial services, offices, food and beverage, and appropriately scaled supermarkets. Large-scale commercial activity requires assessment to ensure that a mix of activities within the local centre is enabled.
Prentice, director of sales and leasing at Colliers, says this outstanding location is well served by a range of popular amenities and is easily accessible.
“The motorway network is a short drive away and there’s an extensive retail offering nearby. When you consider that Massey University’s Albany campus is also only moments away this is a sought-after location,” Prentice says.
“Trophy assets of this scale are rarely presented to the open market and we encourage all interested parties to make contact with us.”
- Supplied by Colliers
