A multi-level building with three established tenants in the popular retail precinct of Lunn Avenue in Mount Wellington offers prospective purchasers the opportunity to secure a top-tier split-risk investment.
The property is located at 53 Lunn Avenue and offers 1,538sq m of total net lettable area on a 3,194sq m freehold site that is zoned Business – General Business Zone under the Auckland Unitary Plan.
The tenants include a well-patronised local gym, bike shop, and plumbing trade store with leases that all have final expiry dates of 2029 or 2031.
The total annual rental income is $511,448 plus GST and operating expenses.
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Easily accessible from Lunn Avenue, the property was originally constructed in 2007 and has 45 car parks, providing convenience for customers, gym-goers, and suppliers.
The busy location is surrounded by some of the biggest names in the retail sector, including McDonald’s, Mitre 10, and New World, among others.
The nearby suburbs include Ellerslie, Meadowbank, Stonefields, and St Johns, giving the wider Lunn Avenue retail hub an affluent catchment of customers.
Colliers Brokers David Burley, Kris Ongley, and Logan Roach have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 1 November, unless sold prior.
The ground floor of the property is split between Mico Plumbing and Evo Cycles. Mico Plumbing’s tenancy covers 594sq m of floor area and includes a showroom, trade sales area, storage, and amenities. They also have access to 20 car parks.
Mico’s lease was recently renewed and runs until March 2029 with 2 per cent annual rental increases.
Evo Cycle’s tenancy spans 568sq m and is largely made up of a showroom and a small canopy. They have access to 16 car parks and their current lease, which includes annual 3 per cent increases and a market review on renewal, runs until February 2025 with one further right of renewal for six years.
Xcel Fitness occupies the first-floor tenancy that spans 410sq m. They have access to nine car parks and their lease has a final expiry of January 2029 and includes 2 per cent annual increases.
Burley, Auckland Director of Investment Sales at Colliers, says Lunn Avenue is one of the premium large format retail destinations in central Auckland and this property offers buyers the chance to acquire a prime asset with a strong tenant covenant.
“The occupants of the property are all well-established operators and are committed to long-term leases,” Burley says.
“The consistent rental growth on offer through annual increases will be highly appealing for buyers.”
Lunn Avenue is readily accessible from the Auckland motorway network and there are nearby public transport links, while Auckland’s CBD can be reached in approximately 15 minutes. For further shopping options, Sylvia Park is nearby.
There is also a host of food and beverage offerings along Lunn Avenue that provides customers with a complementary culinary mix.
Ongley, Director of Investment Sales at Colliers, says the Lunn Avenue area is tightly held, owing to its surrounding catchment of consumers and accessible location.
“The suburbs bordering Lunn Avenue have undergone significant growth during the past 15 years with the development of Stonefields being a notable addition through an abundance of apartments, townhouses, and bigger dwellings,” Ongley says.
“This modern premises has been meticulously maintained and presents in magnificent condition. It also enjoys exceptional road exposure and is highly visible to the strong volume of passing traffic.”
Roach, Investment Sales Broker at Colliers, says the property has compelling underlying investment fundamentals, which makes it an outstanding purchasing opportunity.
- Article supplied by Colliers
