The largest tenanted retail investment offering seen in the Whangaparāoa market for some time is for sale in two separate parcels, to be sold together or individually, giving investors of varying scale, options.
The commercial development at 625 Whangaparāoa Road, Stanmore Bay, on the northern side of the peninsula, is currently undergoing subdivision into three unit titles. The two road front units are available for purchase, while the vendor will retain the third unit to the rear which is occupied by storage business, Hibiscus Coast Self Storage.
The prominently located units on the key arterial route into Whangaparāoa are fully tenanted to retail, fitness and service businesses and have high visibility to an average 20,000 cars per day.
The split-risk property comprises a total floor area of around 948sqm divided across two titles with four established tenancies, and good on-site customer parking.
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The larger unit is occupied by independent gym Fitter Faster Stronger with 362sqm and national brand Liquorland with 181sqm.
The second unit is home to sports retailer Golf HQ with a 205sqm tenancy, and specialist cake maker and cake decorating supplies store, Coast Cakes occupying 200sqm.
The property returns a total annual net income of $206,812 plus GST and outgoings, with tenants on varying lease terms.
Graeme Perigo and Ben Clare, Bayleys Commercial Silverdale, are marketing the property by deadline private treaty closing 12th December, unless sold prior.
Perigo says the unit titling of the asset will expand the investment opportunity to a wider buyer base, and will open the door to first-time commercial investors.
As bank term deposit rates decline, there are people scoping investment opportunities for better returns and as a result, tenanted commercial investment stock is attracting heightened attention.
As a neighbourhood commercial precinct, this Stanmore Bay property has performed well and has had stable occupancy.
The gym and the golf store have been onsite for more than eight years, there s been a liquor store in these premises for more than 12 years, and the cake shop commenced trading from the site in 2021 after relocating from premises nearby.
The current long-standing business occupiers are a good fit for the property and there is some rental upside to be realised which is an added bonus for a new owner, says Clare.
A couple of the existing leases are notably below market rental and there are rental review mechanisms in all of the leases.
Looking ahead, there could be the opportunity for an owner-occupier to take up space, so a forward-thinking buyer could potentially secure one of the units with this in mind.
The property is zoned Business-Mixed Use which allows a wide range of activity including retail, office and residential, and has a height limit overlay of 18 metres.
Whangaparāoa Road is the main thoroughfare on the peninsula, serving both residential and commercial areas. Along with its popular beach, Stanmore Bay has a high level of community amenity including a pool and leisure faculty, shopping plaza, primary and secondary schooling, and public library.
- Supplied by Bayleys
