Property ‘most significant’ in Browns Bay
An elevated view of the retail and investment property for sale at 77-85 Clyde Rd, Browns Bay.
A retail and office freehold investment property featuring 12 tenancies within three buildings in the Browns Bay commercial centre on Auckland’s North Shore, is for sale for the first time in 40 years.
“We believe this is the most significant investment property available in Browns Bay at the present time,” says Janet Marshall of Colliers International who, with colleagues Euan Stratton and Ellie Martin, is marketing 77-85 Clyde Rd for sale by auction at 11 am on October 7 unless it sells before auction day by negotiation.
“The Mixed use zoning of this 1111 sq m site and the area’s growth offer almost unlimited options for the future,” Marshall says.
The three buildings were constructed in the 1960s and 1970s. Building A is positioned along the Clyde Rd street frontage and houses four ground floor retail tenancies with office suites on level one accessed by a staircase from Clyde Rd. Buildings B and C face each other across an off-street parking area to the rear of the property.
The three buildings, two of which are two levels, have a total net lettable area of 1165 sq m. The retail and office tenants in occupation are a pet shop, gift shop, grocery wholesaler, the local Member of Parliament’s office, two cafés, a hair salon, natural therapist, dressmaker and beautician.
Martin says two units are vacant with one under negotiation to a new tenant and the second available to a retailer or service provider looking for the chance to move to Browns Bay.
The units vary in size from 22 sq m up to 193 sq m with tenants holding various lease terms - many with rights of renewal running through to 2024.
Stratton says it’s very rare for a beach-front property of this scale to be offered in the Browns Bay commercial centre.
“Browns Bay is an affluent suburb and there has been significant growth and development in the commercial centre in recent years, including the construction of apartments, a new supermarket and several new retail units. This reflects the desirability of the area among residents and commercial occupiers, with properties being very tightly held.”
Martin says split-risk income stream from numerous tenancies and excellent street profile will add to its appeal to many investors. “Buyers are constantly attracted to assets which offer the security of multiple sources of income and we to be in hot demand on auction day.”
He says there are several options for buyers looking to add value. “It is currently under-rented and has the potential to return around $295,000 net annually. It also has a significant land holding and the building could be modernised or the site could be completely redeveloped in the future – perhaps taking advantage of the Mixed Use zoning to include a residential component.”
Street level view of shop frontages within the 12-tenant Browns Bay property.
Stratton says the popularity of Browns Bay as a shopping and commercial hub for the surrounding large residential area ensures retailers and service providers in the local commercial are well-placed to benefit from their location.
Marshall says site is earmarked for Town Centre zoning under the Proposed Auckland Unitary Plan that will permit a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services.
“The site is also set to receive a 12.5 metre height limit under the Proposed Unitary Plan, opening up the possibility for a developer to make the most of the stunning views over the Browns Bay beachfront to the Hauraki Gulf.”
Stratton says the Browns Bay commercial centre is a busy shopping destination just metres from the beach.
“It’s home to a whole host of national brand-name tenants including ANZ, OPSM, Flight Centre, Pizza Hut, Paper Plus, Westpac, ASB, Countdown and New World.”
Although Browns Bay is a coastal suburb, it also benefits from good motorway and public transport links making it a sought after location among retail and commercial tenants.
“This has fuelled significant recent development,” Martin says. “In recent years, several low rise apartment developments have been introduced in Browns Bay with the aim of revitalising the area for population growth. Future development along Clyde Road is also on the cards, which will further open up the commercial precinct to the popular beachfront.”
Euan Stratton, (left) and Janet Marshall of Colliers International (right).
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