The land and buildings of a high-profile corner property in the thriving Auckland suburb of Silverdale presents prospective purchasers with the opportunity to secure a top-tier split-risk investment with a strong tenant covenant.
3 Brian Smith Drive, Silverdale has 1,727sq m of total net lettable area on a 7,760sq m freehold site that is zoned Business – General Business Zone under the Auckland Unitary Plan.
The property has four tenants signed to long-term leases, including a childcare centre, two medical tenancies, and a cafe. The total net annual rental income from this offering is $790,361 plus GST.
The new, architecturally designed building has been scrupulously constructed and provides 41 on-site car parks. The site is located near a number of prominent businesses, including a Pak ‘n Save supermarket, Bunnings Warehouse, and Silverdale Mall.
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Colliers Brokers David Burley, Adam White, and Shoneet Chand have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 13 April, unless sold prior.
Tiny Voices Silverdale is a modern childcare centre that leases 772sq m of the building and also has access to a 903sq m outdoor play area. They began a 12-year lease in February, which has four rights of renewal for five years each leading to a final expiry of August 2054.
Their lease agreement provides $448,500 plus GST in net annual rental income and includes annual reviews of either 2 per cent or to the market.
Silverdale Medical, trading as Weiti Creek Medical, leases 359sq m of the building and their eight-year term began in May 2020 and has two further rights of renewal for four years each leading to a final expiry of May 2036. Their lease provides $130,162 plus GST in net annual rental income and includes CPI or market rent reviews with the next review due in May.
Dynamic Results is an occupational therapy practice with an eight-year lease on a 441sq m space that began in July 2020. There are two further rights of renewal available for four years each leading to a final expiry of June 2036. Their lease agreement provides $123,750 plus GST in net annual rental income and includes CPI or market rent reviews with the next review set for July.
Gilli Cafe, trading as the Clara Cafe, is a busy site that leases a 155sq m space and they began an eight-year lease in April 2021. Their lease provides $87,950 plus GST in net annual rental income and includes 3 per cent or market rent reviews.
Burley, Associate Director of Investment Sales at Colliers, says this property offers exceptional security and peace of mind for purchasers given the strong tenant covenant.
“A property like this one will allow buyers to purchase with confidence given the nature of these established tenants and the length of the agreements in place,” Burley says.
“While the childcare centre is the anchor tenant, there is an outstanding complementary mix of tenants that adds to this magnificent passive investment opportunity.”
White, Investment Sales Broker at Colliers, says the property is strategically located with easy access for customers and tenants.
“The subject site sits just off Twin Coast Discovery Highway, which is a major arterial route that provides strong traffic flow through the area,” White says.
“Silverdale has experienced major commercial and residential growth in the past few years and remains on an upward trajectory through continued investment.”
Chand, Director of Investment Sales at Colliers, says when examining all of the pertinent factors such as tenant security, building quality, and the location of this site, it adds up to a first-class purchasing opportunity.
“We expect there will be considerable interest in this property and would encourage all interested parties to do their due diligence and contact us immediately.”
- Article supplied by Colliers
