Rare chance to snap up quality suburban retail block
The property is at the northern end of the Royal Oak shopping centre.
A suburban retail and office block of five tenancies on a freehold 696sq m corner site at 754-758 Manukau Road, Royal Oak, is being offered for sale for the first time in more than 18 years.
Marketed by John Davies and Oscar Kuang of Colliers International, the property - spread across two separate titles - will be auctioned as one parcel at 11am on October 16 at Colliers' auction room at 151 Queen St, Auckland, unless sold prior.
Davies says the property has recorded no vacancies for the past two decades, which proves the attractiveness of its location.
"Quality multi-tenanted suburban retail and commercial investments like this, with excellent histories of occupation, are always very popular among buyers and don't come up for sale very often," Davies says.
"With a well established mix of both retail and office tenants, and a rental return of $171,600 net a year, this investment property offers a solid, diversified income stream in a price bracket which is accessible to a large number of individual investors."
The complex, which has a total floor area of 720sq m, was built in the 1960s in Royal Oak which is a community hub between Greenlane, Onehunga and Epsom south.
A Harcourts real estate agency office and an Indian restaurant occupy the two corner retail premises, with a cake shop and a Flight Centre branch in the middle units. Ryan Property Management occupies an office unit within the building.
The tenants are on various lease terms, with final expiries occurring between 2015 and 2025. There is potential for the rentals to be raised to bring them into line with current market rents, thus providing income growth opportunity.
Kuang says the wide frontage offers excellent signage opportunities and visual profile to the tenants. The property is surrounded by council provided off-street carpark spaces permitting 60- and 120-minute parking and providing a vital convenience factor for the centre's customers.
John Bowring, national auction manager at Colliers International, says the opportunity to buy an accessibly priced commercial property with excellent fundamentals should attract a crowd on auction day.
"This is a rare opportunity to purchase a suburban shopping block that is fully let to a good mix of established tenants that has not been on the market since 1996," says Bowring.
"We expect the property to appeal to investors from the wider Auckland region and around the country who are looking for affordable, established investment offerings with diversified income streams."
The property is on Business 2 zoned land, designed for suburban shopping and dining activities, with a maximum development height of 9m.
Bowring says that under the council's proposed Unitary Plan, the site would be zoned Town Centre, a designation applying to centres on arterial roads with good public transport.
"The proposed zoning provides for a wide range of activities including commercial, leisure, residential, cultural, community and civic services, meaning there is significant flexibility for this property should the new owner wish to investigate possible redevelopment options for the future."
Davies says a large established surrounding residential catchment and the main road location of the shops means they will always be popular for a large range of retail activities.
"This is a very stable market for suburban convenience retail, with a large captive residential area surrounding the centre," he says.
"It's a very successful and proven local complex, in a convenient location with a complementary mix of tenancies which services the surrounding residential area well.
"The presence of successful Pak'n Save and McDonald's stores opposite the property demonstrate that this location is proven and recognised by some of New Zealand's largest retailers."
The property is at the northern end of the Royal Oak shopping centre, just over 100m from the Royal Oak roundabout and a 15-minute drive from the Auckland CBD, says Davies.
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