A high-profile retail site with future development potential in the North Shore suburb of Birkenhead is being placed on the market for sale and offers buyers the opportunity to secure a prominent asset with long-term upside.
174 Mokoia Road, Birkenhead has 1,317sq m of total lettable floor area on a 3,896sq m freehold site that is zoned Business – Local Centre Zone under the Auckland Unitary Plan.
The zoning is particularly appealing for prospective purchasers as it opens up a range of future development options.
Concept plans have been drawn up for a five-storey tower that includes a ground floor garage or office space and four levels of apartments. Future occupants would be incredibly well served by the surrounding amenities, including a neighbouring supermarket.
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The property is currently home to seven retail tenancies, including well-known occupants Domino’s, the Bottle-O, and Jetts gym, among others. There is further ancillary income from cell towers and storage space leading to a final net annual rental income figure of $591,178 plus GST.
The positioning of the site is highly desirable, offering excellent connectivity from Auckland CBD, which can be reached in approximately 10-15 minutes in normal driving conditions, and outstanding views of the city.
Mokoia Road is a main arterial route in Birkenhead providing access to other popular North Shore suburbs such as Birkdale and Beach Haven and the property enjoys high levels of exposure to passing traffic.
Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 21 June, unless sold prior.
The complementary tenancy mix has occupants with long-term leases, including some that run into the 2040s if all the rights of renewal are enacted.
Jetts is the anchor tenant at the site and occupies 571sq m, while the Bottle-O tenancy spans 217sq m, and the Domino’s store measures 79sq m. There’s also a cafe, sushi shop, hairdressers, and a laundromat.
Chand, Director of Investment Sales at Colliers, says the opportunity to secure a strategic property in this sought-after location will pique the interest of buyers.
“The long-standing occupants at the property, which include notable national brands, provide a strong tenant covenant for discerning investors who will enjoy the steady rental stream,” Chand says.
“The lease agreements involve a mixture of future CPI and market rent reviews providing built-in growth for the future owner.
“The opportunity to potentially develop the site presents buyers with the chance to maximise the value of their purchase and it would be a highly appealing location for apartment dwellers who could work from home with all of their day-to-day needs such as a gym, hairdresser, and food and beverage options on their doorstep.”
Prentice, Director of Sales and Leasing at Colliers, says the zoning of the property allows for a significant development of up to 18m that could unlock the full potential of the site.
“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,” Prentice says.
“Large-scale commercial activity requires assessment to ensure that a mix of activities within the local centre is enabled. The expansion of local centres will be appropriate if it provides greater social and economic wellbeing benefits for the community.”
- Article supplied by Colliers
