New retail units in New Lynn for auction
New Lynn’s architecturally-designed Merchant Quarter at 28-42 Totara Avenue was completed in September. Photo / Supplied
Five new freehold retail units in the Merchant Quarter, at the centre of West Auckland’s suburb of New Lynn, will be auctioned following the recent successful sale of the first tranche of units.
“The new round of auctions follows the successful sale of seven units over the last month,” says Tony Allsop of Colliers International who, with colleagues Josh Coburn and Cherry Higginson, has been exclusively appointed to market the units at 28-42 Totara Avenue, for sale by individual auction at 1pm on Wednesday, December 6 unless sold prior.
Allsop says the ‘affordably priced units’, three of which are tenanted by national brands, are all signed to long-term leases with built-in rental growth and bank guarantees.
“Four units have sold at auction, two by private treaty, and one off the market, with sales prices ranging between $456,789 and $2.55 million,” he says.
“The yields ranged between 4.43 per cent and 6.87 per cent, which demonstrates just how affordable they are.
“Demand was so strong that the developer has decided to push ahead with the sale of this second tranche of units ahead of Christmas and we’re expecting strong bidding at the auctions.”
The units for sale have been newly developed by Infratil, which partnered with Auckland Council’s urban regeneration agency Panuku to enable the revitalisation of New Lynn’s former transport hub.
“The architecturally-designed Merchant Quarter was built over two stages and was completed in September,” says Allsop.
“It comprises a ground floor retail complex, an apartment tower, and a four-level car park with three levels of apartments on top.
“The modern retail units for auction have excellent street frontages with aluminium joinery and floor-to-ceiling toughened glass.”
Ranging in size between 90.71sq m to 217.71sq m, the units earn net passing incomes of between $34,527 and $73,236.83 per annum.
Coburn says Unit A, tenanted by Mexicali Fresh, is 217.71sq m with a street frontage to McCrae Way.
“Mexicali Fresh is a casual Mexican eatery serving California-style tacos, burritos and other favourites,” he says. “The unit is on a 10-year lease with a six-year right of renewal, earning $73,236.83 a year.”
Unit D, tenanted by Bay Audiology is 103.22sq m and also fronts McCrae Way.
“Bay Audiology is a New Zealand company specialising in hearing healthcare services and products, with more than 95 clinics throughout the country,” Coburn says.
“The unit is on a four-year lease with a four-year right of renewal, generating $36,849.54.”
Unit J of 105.36sq m fronts Totara Avenue and is tenanted by the Tian Lan Chinese Medical Centre.
“The practice specialises in a range of different Chinese therapeutic methods including acupuncture, acupoint, cupping, moxibustion and deep tissue massaging,” Coburn says.
“The unit is on a six-year lease with a six-year right of renewal, earning $37,100 a year.”
Unit K, tenanted by discount shop 2 Buy, occupies 110sq m and front Totara Avenue. The unit is on an eight-year lease with two three-year rights of renewal, generating $37,950 a year.
Coburn says the final offering, Unit M, is tenanted by Esquires. The 90.71sq m unit fronts Totara Ave and is signed to an eight-year lease with two six-year rights of renewal, earning $34,527 a year.
“First established in New Zealand in 2002, Esquires is a fast-growing coffee house franchise,” Coburn says. “It recently launched the new Esq brand, which aims to set the standard in delivering freshly made in-store food and improved organic Fairtrade coffee.
“The Merchant Quarter outlet is among 28 new Esq stores nationwide, with further openings planned.”
Higginson says Merchant Quarter is in the heart of New Lynn’s growing commercial centre.
“It is the oldest part of New Lynn, with a long history as a trade and retail hub. It is a thriving town centre with a post office, police station, library, banks, community centre and numerous shops.”
Higginson says Auckland Council recognises New Lynn among Auckland’s 10 metropolitan centres – a clear indication of its stature and growth within the context of the city’s development.
“The New Lynn Urban Plan, which maps out the council’s vision for the centre, envisions a sustainable metropolitan centre with a world-class transport interchange,” she says.
“The plan anticipates New Lynn’s population will grow by 10,000 by 2030 with 2000 new jobs created.”
The completion of the New Lynn Transit Interchange, the extension of Clark St, and the creation of new shared spaces along Totara Avenue West have opened up more opportunities for retailers in the area.
“Upgrades to the rail network have made New Lynn a short 11-minute ride to Auckland CBD, while dedicated bus lanes have cut travel times for frequent feeder buses,” Higginson says.
“Five million travellers a year now pour through the precinct, and that number is set to increase as the area continues to grow.”