Half Moon Bay retail units
The four retail units 2-5 in the commercial block at 490 Pakuranga Rd, Half Moon Bay. Photo / Supplied
Four retail investment properties in a block anchored by key national tenants are for sale in Auckland’s eastern suburbs either together or individually.
Colliers International brokers Gawan Bakshi and Matthew Barnes are marketing Units 2-5 at 490 Pakuranga Rd, Half Moon Bay, for sale by deadline private treaty, closing on March 22, unless they sell earlier.
Bakshi says the properties are being sold individually, giving investors the opportunity to buy one or all four.
“Located in East Auckland’s entertainment precinct, these tidy modern units are part of a highly active retail block anchored by burger retailer Carl’s Jr,” says Bakshi.
“They occupy a commanding position on busy Pakuranga Rd, giving them exposure to traffic on one of the main arterials through this affluent and growing area. Tenants include national cafe franchise Columbus Coffee and popular sushi roll retailer Bruce Lee Sushi.
“Each of the units is within an affordable investment price bracket, earning net annual rents of between $27,000 to $60,000. With built-in rental growth and good tenant covenant, investors could acquire one or more of these solid retail assets in a steadily growing Auckland location.”
Bakshi says the area benefits from a young to middle-aged demographic with a diverse ethnic mix, high employment rate, and strong median household income of around $75,000.
“The surrounding area is well known for its mix of hospitality, shopping and entertainment offerings, including national retail and trade outlets,” he says.
“The popular Pakuranga Rd retail strip has a variety of international eateries and convenience food and beverage outlets.
“Retail offerings in the area range from services like petrol stations, pharmacies, doctors and banks, through to large format retailers.”
Barnes says the property is extremely well connected, being little more than 10 minutes’ drive from the Southern Motorway, while public transport services including ferries, buses and trains are nearby.
Barnes says the units are part of a modern 350sq m retail block on the western boundary of the property, across the car park from Carl’s Jr.
Each unit has customer car parking, with spaces in front of all four units which are:
- Unit 2, the largest tenancy, comprising 130sq m with frontage to Pakuranga Rd. Columbus Coffee is signed to an eight-year lease on the unit earning $60,373 in annual rent. The lease has three years remaining, after which Columbus has two rights of renewal of a further eight years each.
- Unit 3, in which Ji Wang Restaurant sublets an adjoining 80sq m tenancy within the unit. The restaurant is signed to a six-year lease generating $41,247.76 in annual rent. The lease expires in 15 months, after which there are two rights of renewal of four years each.
- Unit 4, of 70sq m occupied by Bruce Lee Sushi signed to a 10-year lease earning $27,002 in annual rent. The lease has five years remaining, followed by two rights of renewal of five year each.
- Unit 5, of 70sq m which is sublet to a Chinese health shop, signed to an eight-year lease generating $37,973.90 in annual rent. The lease has three years remaining, followed by two rights of renewal of four years each.
All four leases offer guaranteed rental growth. Unit 2’s lease also offers market rental reviews on renewal, while the leases on Units 3 and 4 offer periodic rental reviews.