Winning mix of location and tenants out West
The Coffee Club and ASB Bank at 288-290 Lincoln Rd, Henderson.
ASB Bank and The Coffee Club are tenants in a high profile commercial building for sale on the corner of busy Lincoln Rd in West Auckland.
“This property occupies one of the most prominent sites in Henderson,’ says John Davies of Colliers International who, with colleague Michael Bray, is marketing 288-290 Lincoln Rd for sale by deadline private treaty closing at 4 pm on Wednesday, September 30 - unless it sells earlier by negotiation.
“This spot at the northwestern motorway end of Lincoln Rd is hard to beat as an investment location,” Davies says. “Add in the fact that this property has a modern, quality building, with two nationally branded tenants and it presents a very attractive set of investment fundamentals. We believe the building’s striking visual design and its highly visible corner location within a fast-growing retail and commercial hub, will make it a sought-after trophy property for investor portfolios.”
Bray says the split-risk characteristics of the asset will be a further draw card.
“Multi-tenanted investments like this one are always popular, as owners still receive an income stream from remaining tenants if one occupier vacates. The leases at this property also have annual rental increases built in, giving a certainty of income growth which is a significant plus for buyers.”
Bray says three tenancies within the building generate total net annual income of $556,000.
The 1504 sq m building occupying a freehold 1871 sq m site was constructed in 2013 and houses ASB Bank’s West Auckland regional centre as its anchor tenant. The bank occupies the entire first floor office space and one ground floor retail unit, where it operates a state of the art, drive through banking facility. ASB’s nine year lease extends through to January 2022.
The Coffee Club holds a 10 year lease to its ground floor retail unit, expiring in November 2022. The café chain, which was established 10 years ago, now has over 350 cafés throughout Australia, New Zealand, Asia and the Middle East.
A third ground floor retail unit is leased to Peak Pilates until March 2018. The business has moved out and continues to pay some rent while the unit is re-leased.
Parking for 60 cars is included with the property, comprising secure basement car parks along with off-street customer parking in front of the retail units. Davies says the fit out of each tenancy is in keeping with the building’s architectural design as a compact retail and business centre.
“Both the Coffee Club and the ASB both have attractive balconies overlooking the Waitakere Ranges while the retail tenancies all front Lincoln Rd,” he says.
The ASB’s first floor office is connected to the ground floor by a lift and stairs which can be accessed off either Daytona Rd or Lincoln Rd.
“The building has the potential to be split into separate freehold unit titles which could be on-sold,” Davies says
Bray says the property is about 13 km west of Auckland’s central business district.
“West Auckland is the fastest growing area in Auckland and there are over 20,000 new homes planned for the wider area. This will bring in around 60,000 new residents, which bodes well for retailers along busy Lincoln Rd,” he says.
Aerial view of corner property for sale in Lincoln Rd, Henderson.
“Retail space has been under supplied here for a number of years and Henderson’s vacancy rate of 4.7 per cent is below the regional average.”
Davies says the majority of office space in the area is low rise, with much of it built before the 1990s. “The prevalence of older office buildings, along with the increasing local population, is expected to lead to further demand for A-grade office space in the short to medium term.”
Bray says Lincoln Rd is developing fast and attracting major retailers.
“Lincoln Rd carries over 42,000 vehicles per day and Auckland Transport is planning upgrades that will significantly improve the traffic flows and assist the area's growth.
“There are already many major national and international branded retail outlets along Lincoln Rd, including large occupiers such as Countdown, Pak ‘n Save and Mitre 10 Mega.”
“The completion of the Western ring motorway route and the Waterview Connection project linking the State Highway 20 southwestern motorway with the State Highway 16 northwestern motorway will dramatically improve travel times from this site to the rest of Auckland,” says Bray.
John Davies, Colliers International.