Ideal buy at Wairau Park
A high-profile commercial unit, leased to an established tenant for more than two decades in the popular Wairau Park area of the North Shore, is expected to attract buyers looking for secure investment properties.
"Lighting Direct has occupied Unit 11 at 18 Link Drive since it was completed in 1993 some 21 years ago," says Andrew Bruce of NAI Harcourts North Shore, who, with colleague Rob Meister, is offering it for sale by auction at noon on Thursday, July 3, at NAI Harcourts' auction room, 400 Beach Rd, Mairangi Bay.
"This property has guaranteed rental growth, with annual Consumer Price Index rent reviews and a new lease from April 1 last year," says Bruce.
With excellent street exposure and in a desirable location, directly opposite Freedom Furniture, the property is a road-front unit and part of a multiple courtyard complex.
It comprises a substantial retail showroom, service entry, toilet, office and lunchroom with a floor area of about 445.7sq m and 10 car parking spaces.
A seismic report on the building shows it is not earthquake prone with a 90 per cent New Building Standard (NBS) and Grade-A seismic rating.
Bruce says the design and appearance of the property is attractive. "The road front wall is predominantly a glass curtain wall system with teal-coloured aluminium framing together with clear and tinted glazing. Profiled metal canopies extend out over the road frontage and the building features two entrances, which would allow further subdivision into two separate tenancies if desired."
A feature of the unit is the absence of a mezzanine floor, which Bruce says is not needed and surplus to the requirements of many retailers.
The construction comprises concrete foundations and floor slab. Roofing is channel section galvanised iron laid over foil insulation and wire mesh supported by a steel frame.
Meister says properties of this calibre are tightly held and keenly sought after by both tenants and investors. "This is evident by Lighting Direct's long-term tenancy and commitment to the property. Rent has always been paid promptly, with no arrears in the entire 21 years of tenancy," he says.
Lighting Direct pays a net rent of $109,700 per annum, plus GST, on a lease beginning April 1, 2013, and running for six years with a six-year right of renewal and annual rent reviews.
"With a chain of 25 stores nationwide, Lighting Direct has serviced the New Zealand market for almost 38 years and is a stable and long-term tenant," Meister says.
Wairau Park was developed during the late 1980s and early 1990s to become the bulk retail focal point for the North Shore.
Meister says the affordability of rental rates in relation to other centres and its central location make the Link Drive locality a popular and sought-after location.
On the western side of Link Drive, about 100m south of its intersection with Sunnynook Rd and Totaravale Drive, the property is 800m from Wairau Rd and 1.4km from the Tristram Ave motorway interchange.