A fully tenanted Bute building
The property, at 41 Bute Rd, Browns Bay, stands in the mixed-use zone. Photo / Supplied
A large commercial building going on the market at Browns Bay, creates the opportunity to own a well-tenanted property in the affluent Auckland suburb.
JLL agent John Binning is selling the two-storey premises, which stands on a 2093sq m site with 32 carparks, at corner of Bute and Beach Rds. There are six retail tenants on the ground level, while a childcare centre — consented for 75 children and serviced by lift — takes up the entire first floor.
Binning says the property is freehold with a strata title, meaning its units can be sold individually if desired.
The childcare tenant, Lollipops, leases a total of 820sq m, comprising 430sq m of indoor space plus 390sq m of outdoor space on an open deck.
“Lollipops has four indoor and three outdoor playground areas, a sleep room, staff room, kitchen, gallery, three toilet facilities and reception area,” says Binning.
Ground floor retail units range in size from 70sq m — for the prime corner space — to 194sq m for the largest space. Smaller tenancies are all food outlets; two are on 10-year lease terms and one on a three-year lease term.
A ground-level superette has a six-year lease term.
The electric bike business (electrify.nz) occupies a 100sq m unit on a three-year lease.
Fruit World occupies the largest unit of 194sq m and has an eight-year lease.
“There’s about a 55m frontage to Beach Rd and about 37m to Bute Rd. Being at the busy intersection of Beach and Bute Rds, with access from both, has been a key reason space here is in such high demand.
“It should also be noted that traffic movements in Beach Rd have been estimated at a very respectable 14,000, over the course of a working week.”
Binning says the property at 41 Bute Rd will be sold by private treaty.
JLL agent Ian Hall says the total rental income is $416,729 net, with most tenants on a two-year rent review cycle and one is on a three-year cycle.
“The building dates from in 2011 and is well-built of reinforced concrete slab and steel beams with commercial grade long-run iron roofing.
“This property has handy nearby motorway access and is also just a few minutes walk from the beach. Parks, sporting facilities and leisure centre are all nearby as well,” says Hall.
JLL demographic research shows that over the next 25 years to the year 2043, population in Browns Bay is expected to grow by 26 per cent.