Split risk multi-tenanted Browns Bay retail centre

5:00 AM Saturday February 14, 2015 Colin Taylor

Elevated view of multi-tenated retail property at 25-27 Anzac Rd, Browns Bay.

A standalone property encompassing 10 independent retail tenancies within a single building in the popular North Shore seaside suburb of Browns Bay and is to be auctioned next month.

“Annual net income from the property at 25-27 Anzac Bay Road is about $273,000 annually from nine tenants on net leases and one on a gross lease,” says Gary Seekup of Barfoot & Thompson North Shore Commercial.

Seekup and his colleagues, Bruce Jiao and Tim Bibby, are marketing the multi-tenanted and well positioned Business 2 zoned retail building for sale by auction at 10.30 pm on Wednesday March 18 at the agency’s 34 Shortland Street, Auckland city office – unless it sells earlier by negotiation.

“The building occupies freehold site of 2082 sq m on two titles and is located in a prominent position within the Browns Bay commercial area, towards the southern end only a short distance to the beach,” Seekup says.

“The property is bounded by two major supermarkets – a Countdown on the opposite side of Anzac Road and a New World which is currently under construction. These two businesses will be the catalyst for providing continual pedestrian flow and business activity in the area. The surrounding area comprises supportive retail, services and good parking in a vibrant commercial hub containing cafes, restaurants, major banks, national boutique retailers and various office tenants.”

Seekup says the property’s southern boundary of 37.52 metres faces the Anzac Road reserve and the western boundary of 55.31 metre connects without any barriers to an Auckland Council carpark.

The building for auction was built around 1972 on relatively flat land as a single storey retail block and contains a mezzanine floor. It consists predominantly of reinforced concrete masonry construction with precast reinforced concrete mezzanine floor slabs supported by concrete block walls and plaster columns topped by longrun steel roofing.

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Street level view of Browns Bay retail block for sale.    

In 1993, building alterations were made to divide the single retail building structure into multiple retail units and involved structural alterations to the original building which included the replacement of an existing steel portal frame.

Jiao says the 10 separate tenancies all have their own amenities - some provided by the alterations and some provided by the tenants themselves. A paved asphaltic concrete car park provides parking for 37 vehicles.

“A recent initial evaluation procedure (IEP) assessment determined the potential earthquake rating of the building at 69 per cent of new building stand (NBS) – well above the Auckland Council’s minimum of 34 per cent. 

Jiao says the 10 tenants within the 983.20 sq m complex comprise: a café, florist, bakery, Hells Pizza, hairdressing salon, hair stylists, Zanzibar takeaway food outlet, fashion shop, Indian restaurant and real estate agency. They are on lease terms ranging from two to six years, all but one tenancy have rights of renewal and the leases have rent reviews tied to the Consumer Price Index or to market.

“The good tenant mix and variety of lease terms provide for an excellent split risk investment,” Jiao says.

Bibby says the Browns Bay township services a large residential and affluent catchment including the fast expanding Long Bay suburban area.

“Within the Browns Bay commercial area itself, high density residential units have been developed with more planned. It is the largest of the commercial centres throughout the East Coast Bays and has the advantage of adjoining a very popular beach.

“In summary, this property is located within a well established coastal suburban commercial centre characterised by a good range of convenience, specialty shops and services, and supported by a growing residential catchment,” Bibby says. 

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Gary Seekup of Barfoot & Thompson