A renovated, fully tenanted commercial investment property near the beachfront in Browns Bay, on Auckland’s North Shore, has been placed on the market.
The single level property at 71a Clyde Road, which is home to national clothing retailer Caroline Eve and local business Indulge Cake Supplies, is being marketed by John Bedford of CBRE for sale by deadline private treaty closing at 4pm on December 8.
The 264sq m building provides a dual-income, hassle-free investment in a prime corner position in a highly popular business precinct, says Bedford.
“This property offers several favourable investment characteristics which will be considered very appealing among buyers, including a split-risk income stream, a high-quality renovation and a prime position in a very popular suburb.”
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The code compliance certificate has been granted for all the consented building works, leaving no outstanding issues for the new owner to take on, he adds.
“With high-quality tenants signed up and the refurbishment complete, the incoming owner can sit back and collect the rent from two well-known occupiers which are already established in the area.”
Both Caroline Eve and Indulge Cake Supplies have relocated to the building from nearby premises and have signed new leases.
They now occupy ‘as new’ units, following the extensive refurbishment project which has resulted in modern, highly functional and efficient retail space being presented to the market, Bedford says.
“No expense has been spared in the transformation of these retail units, which present extremely well to customers and set a benchmark for quality commercial premises in this area.”
The building’s interior has been completely stripped out and rebuilt, with the units featuring new wall and ceiling linings, timber flooring, recessed lighting, a new air conditioning and positive fresh air system, lunchrooms and amenities.
New automatic sliding doors have also been installed to both of the fully-glazed shopfronts.
“These refurbished units represent a step up in both quality and location for both tenants, which are a familiar presence in Browns Bay and now get to enjoy brand new premises just a block back from the beachfront,” says Bedford.
The property is also within a value range that many investors will consider affordable, making it a highly attractive proposition, he says.
“For investors considering investing a comparable sum into the residential market, this property offers a compelling alternative, providing the benefits of two income streams, an extensive list of chattels, advantageous Business – Town Centre zoning, including future air-rights and a prime land holding close to the beach in a bustling town centre.”
Caroline Eve and Indulge Cake Supplies have signed up to new leases of seven and five years respectively, backed by bank guarantees, paying a combined $107,500 net a year.
The leases both have annual fixed rent reviews, with rights of renewal extending the potential lease terms until 2036 (Caroline Eve) and 2035 (Indulge).
Both tenants have a strong trading history in the area and have demonstrated their confidence in, and commitment to, the Browns Bay commercial centre by moving to 71a Clyde Road, Bedford says.
“It’s fantastic to see two successful businesses, one national and the other local, continuing to remain part of the fabric of this thriving town centre and trading up to better-located and higher quality premises. It’s testament to the success they enjoy in their industry, particularly in this suburb.”
Caroline Eve occupies a 175sq m unit in the building with one basement car park. The women’s clothing retailer is one of the largest privately owned chains in its sector of the market in New Zealand. Originating in the Waikato in 1987, the company now operates 40 stores from Browns Bay to Gore.
Indulge Cake Supplies occupies the other unit, which is 89sq m in size. The business was established in 2010 and has grown to become Auckland’s largest provider of cake decorating supplies, through its online store and the Browns Bay physical store.
The prominent corner property is positioned on a vehicle laneway linking Clyde Road with Beach Front Lane, making it highly visible to people heading to and from the beach or visiting retailers and services in the town centre.
Commercial properties in the prime Clyde Road commercial strip are rarely offered for sale, with several local owners holding assets for the long term, says Bedford.
“Browns Bay has been a centre of significant growth and development over the years, including higher density residential and increased retail provision.
"This reflects the desirability of the area among local residents and businesses, which results in commercial properties here being very tightly held. With the excellent township-beach activation, it is one of the most bustling suburbs in Auckland.”
- Article supplied by CBRE
