A highly visible corner site with three commercial tenancies and adjoining development land in the North Shore suburb of Milford is being presented to the market for sale for the first time in nearly 25 years.
58-62 East Coast Road, Milford offers 222sq m of total floor area spread across three tenancies and approximately 276sq m of development land. The freehold site is zoned Business – Neighbourhood Centre Zone under the Auckland Unitary Plan.
The individual commercial tenancies, made up of a cafe, dairy, and sushi shop, range in size from 54sq m to 113sq m and enjoy significant road exposure and easy access via street parking.
If all future rights of renewal are exhausted, the existing tenancies will run through until 2027 and the property currently returns $90,500 plus GST in total net annual rental income.
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The flexible zoning presents prospective purchasers with a range of options for the flat development site and offers a significant opportunity to maximise the value of the property.
Sitting at the gateway to Milford and Takapuna, this property provides a steady rental stream and the room to grow.
Colliers Directors Matt Prentice, Shoneet Chand, and Jimmy O’Brien have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Tuesday 28 March, unless sold prior.
The retail development was originally constructed in the 1950s and has been strategically configured to accommodate three tenancies.
Popular cafe Stanley’s is the biggest retail tenancy, and they lease 113sq m of floor area under an agreement that expires in 2024 and provides $48,750 plus GST in net annual rental income. They have one further right of renewal for three years.
Pacific Superette occupies 54sq m and their lease runs until July 2025 with one further right of renewal for two years. Their lease provides $20,750 plus GST in net annual rental income.
Sushi Milford’s premises spans 55sq m and their current five-year lease runs until November 2027 with no further rights of renewal. Their lease provides $21,000 plus GST in net annual rental income.
Prentice, Director of Sales and Leasing at Colliers, says the property provides the best of both worlds with income and growth potential in one.
“The prospect of having three established tenants with existing leases that all include market reviews during the coming years will be incredibly appealing as it provides a strong tenant covenant for the property,” Prentice says.
“Additionally, the opportunity to further enhance the site through the development land, which can also be subdivided, adds a unique element to this offering and we expect it will draw significant interest in the market.”
Chand, Director of Investment Sales at Colliers, says Milford is a sought-after North Shore location.
“Sitting on the northern side of Lake Pupuke, Milford offers a popular swimming beach and a host of local shops and amenities,” Chand says.
“The Northern Motorway can be reached in approximately five minutes, while the CBD is readily accessible.”
O’Brien, Director at Colliers Auckland North, says the zoning of the property means there is flexibility on offer for buyers.
“The Business – Neighbourhood Centre Zone applies to single corner stores or small shopping strips located in residential neighbourhoods. They provide residents and passers-by with frequent retail and commercial service needs,” O’Brien says.
“Provisions typically enable buildings of up to three storeys high and residential use at upper floors is permitted.
“Given the enticing combination of income and growth potential rolled into one we encourage buyers to contact us immediately to ensure they don’t miss out on this distinctive opportunity.”
- Article supplied by Colliers
