A highly visible block of shops on a corner site in the fast-growing suburb of Mount Wellington will appeal to developers and add-value or passive investors who will recognise the potential on offer in this prime location.
103 Barrack Road, Mount Wellington has a total building area of 374sq m spread across six different shops on a 936sq m site.
The property includes a laundromat, hairdressing salon, pizza shop, superette, bakery, and takeaway store.
The single-level building has excellent street frontage with large profile to Barrack Road and McCracken Road.
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The property provides a total net annual rental income of $123,240 plus GST and is zoned Business – Neighbourhood Centre Zone under the Auckland Unitary Plan.
Colliers brokers Logan Roach and Gareth Fraser have been exclusively appointed to market the property for sale by auction to be held at Colliers, HSBC Tower, Level 23, 188 Quay Street, Auckland and online via Auctions Live at 1pm on Wednesday 2 March, unless sold prior.
The Barrack Superette, which has a lease that runs until April 2027, is the largest shop in the block and occupies 97sq m, while the other shops vary in size from 54 to 58sq m.
Most of the other leases expire within the next two years, leaving flexibility for the new owner who may wish to reposition the property, extend the leases of the current occupants, secure new tenants, or occupy a store themselves.
Roach, investment sales broker at Colliers, says this site represents an outstanding purchasing opportunity given its size, location, and highly functional shops.
“The property is set back from the road on a busy corner site giving tenants high levels of street exposure while there’s 11 marked public car parks offering convenience for customers. There is also a dual access service lane with car parking for tenants,” Roach says.
“This is a premier split-risk investment that will provide multiple income streams through the six existing tenants.”
Roach says the favourable zoning means the new owner will have a range of options on their hands if they wish to develop the property in the future.
“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.
“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.
“This ensures the new owner will have scope for redevelopment at this site and the rental income on offer will allow them to take their time as they decide their next moves. Alternatively, buyers may view this as an outstanding passive investment and choose to remain hands off while they collect the steady rental stream.”
Fraser, Auckland director of investment sales at Colliers, says Mount Wellington is a rapidly gentrifying area that continues to experience ongoing growth.
“This is a hugely popular local shopping site that is well serviced by the Mount Wellington residential catchment. This area has seen a number of new residential developments in the past few years with more to come,” Fraser says.
“The property is only 1.6km away from shopping centre Sylvia Park and the recently announced new home of IKEA. Access to train and bus links are close by, while State Highway 1 is readily accessible, and Auckland’s CBD can be reached in only 12 minutes.
“We encourage all interested parties to do their due diligence and contact us immediately, so they don’t miss out on this opportunity to secure a high-profile investment with significant future development potential.”
- Article supplied by Colliers
