A highly visible retail and service centre sitting on a prominent corner site in Wellsford that features internationally renowned tenants signed to long-term leases is being presented to the market for sale.
95 Rodney Street, Wellsford offers 589sq m of total floor area spread across multiple retailers on a 3,352sq m site that is zoned Business – Town Centre Zone under the Auckland Unitary Plan.
Colliers Brokers Tony Allsop, Nigel Ingham, and Daniel Sloper have been exclusively appointed to market the property for sale via an asking price of $7,052,460 plus GST.
Caltex and McDonald’s are the anchor tenants at the property and have lease agreements that run until 2041 and 2030, respectively, if all of the tenancy options are renewed. The property provides $423,147 plus GST in total net annual rental income.
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Adjoining Caltex is an arcade-style retail development with five tenancies, including the McDonald’s restaurant, that are laid out in a food court setting with common seating, amenities, and staff areas.
The owner has recently invested significant expenditure in upgrading all internal amenities, fixtures, and fittings as well as air conditioning services. External improvements include roofing and signage works.
The property, which has a 100 per cent seismic rating, enjoys high traffic volumes and provides separate points of access from Rodney Street and Port Albert Road.
The town of Wellsford sits at the intersection of State Highway 1 and State Highway 16 and is the northern-most town in the Auckland region. It’s midway between Auckland and Whangārei and is approximately 60 minutes from both cities.
The complex was built in the 1990s and the Caltex service station offers 10 pumps with a freestanding forecourt canopy and convenience store.
Caltex’s current lease runs until 2031 with a further right of renewal for 10 years. Their lease provides $197,197 plus GST in net annual rental income and includes two-yearly CPI rent reviews and a market review every six years.
McDonald’s occupies 138sq m of floor area comprising their main restaurant, McCafe, and storage space. Their current lease runs until 2025 and offers one further right of renewal for five years, leading to a final expiry in 2030. Their lease provides $110,152 plus GST per annum in net annual rental income and includes future rent reviews based on turnover.
The other tenancies in the retail building include an arcade games facility, Jesters, and Butter Chicken Box. The existing tenancies end at various stages between 2027 and 2031 allowing the new owner to potentially pursue rental growth through future reconfigurations of the property or the tenancy mix.
Allsop, Director of Investment Sales at Colliers, says the property offers a strong tenant covenant with highly recognisable brands signed to long-term leases.
“Buyers covet the opportunity to secure properties with a split-risk tenancy arrangement as it provides multiple income streams,” Allsop says.
“Having blue-chip operators in the property such as Caltex and McDonald’s will be highly desirable for buyers who have the chance to secure a top-tier passive investment.”
Ingham, Director at Colliers Whangārei, says the ongoing development of State Highway 1 will push more traffic through Wellsford, adding to growing visitor numbers.
“The Ara Tūhono - Pūhoi to Warkworth project will provide a safer, more resilient, and reliable route between Pūhoi and Warkworth. It will extend the four-lane Northern Motorway 18.5km from the Johnstones Hill Tunnels,” Ingham says.
“The highway will be built to the west of the existing State Highway 1 and will bypass Warkworth on the western side. It will be a four-lane dual carriageway, separated by a central median with a safety barrier.”
Sloper, Investment Sales Broker at Colliers Whangārei, says the property offers user-friendly facilities that are maintained to a high standard and offer convenience to visitors and locals.”
- Article supplied by Colliers
