A commercial building nestled among a block of shops on a high-profile corner site in the rapidly growing suburb of Glen Innes presents buyers with the opportunity to acquire a property with a strong tenant covenant, steady rental stream, and long-term upside.
143 West Tamaki Road, Glen Innes is a 203sq m property on 223sq m of freehold land that is zoned Business – Neighbourhood Centre Zone under the Auckland Unitary Plan.
The building is home to N’s Cafe, an established tenant on a long-term lease that runs until October 2025 with further rights of renewal in place. Their lease provides $72,000 plus GST in net annual rental income.
The property enjoys significant street exposure to West Tamaki Road, while there’s parking available providing convenient access for customers.
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Colliers brokers Logan Roach, Ronal Prasad, and Gareth Fraser have been appointed to market the property for sale via auction to be held at Colliers, HSBC Tower, Level 23, 188 Quay Street, Auckland and online via Auctions Live at 11am on Wednesday 20 July, unless sold prior.
The property has been well maintained to a high standard and includes a commercial kitchen with indoor and outdoor seating options for patrons.
While the existing lease runs through until October 2025, there are three further rights of renewal in place for three years each, leading to a final expiry of October 2034. There are CPI rent reviews scheduled for every two years capped at 3 per cent and market rent reviews on the renewal dates.
Roach, investment sales broker at Colliers, says the property represents an outstanding purchasing opportunity.
“The cafe has been in operation for more than 10 years and is a staple of the local community in a busy block of shops that enjoys a high volume of passing traffic via West Tamaki Road, a key arterial route in the area,” Roach says.
“The ongoing rental increases provide growth for the future and favourable terms for the new owner, while the long-term lease exemplifies the strong tenant covenant that comes with this property.”
Prasad, investment sales broker at Colliers, says the building is in a tightly held commercial location.
“The Glen Innes town centre is only minutes away and offers a range of popular amenities, including big brands such as Chemist Warehouse and Pak ‘n Save, alongside a host of other notable hospitality options,” Prasad says.
“Glen Innes is quickly gentrifying with vast amounts of local investment in new housing and infrastructure, while neighbouring Glendowie provides an affluent residential catchment. The Glen Innes train station is only 3.2km away.
“There’s also a range of schools nearby, including Sacred Heart College and Glen Innes School.”
Fraser, Auckland director of investment sales at Colliers, says the property provides long-term upside due to the favourable zoning.
“The Business – Neighbourhood Centre Zone applies to single corner stores or small shopping strips located in residential neighbourhoods,” Fraser says.
“They provide residents and passers-by with frequent retail and commercial service needs. Provisions typically enable buildings of up to three storeys high and residential use at upper floors is permitted. Development is expected to be in keeping with the surrounding residential environment.
“The zoning of this property means it could be repositioned in the future, which will be highly appealing for buyers. We expect there will be significant interest in this offering and encourage all prospective purchasers to contact us promptly.”
- Article supplied by Colliers
