A modern corner-axis block of retail shops with a broad range of neighbourhood-focused tenancies in suburban Auckland has been placed on the market for sale.
The substantial property at 1 Arranmore Drive in the South Auckland residential suburb of Flat Bush contains a diverse mix of tenants – ranging from a Chinese takeaway outlet, hair salon, and café, through to a real estate agency and a laundromat.
The 491 square metre block of five terraced shops sits on 1,463 square metres of flat freehold land zoned business - neighbourhood centre under the Auckland Council plan.
Constructed in the 2014, the shops have customer parking on Arranmore Drive for nine vehicles, with additional off-street parking for spaces for nine more vehicles to the side and rear of the shops, and parking immediately outside the building along busy Flat Bush School Road. The premises has a new building standards rating of 100 percent.
The Arranmore Drive block is now being marketed for sale by deadline private treaty through Bayleys Manukau, with offers closing on June 15. Salespeople Tony Chaudhary, Amy Weng and Janak Darji said the modern single-storey corner block was strategically constructed and tenanted to be a ‘neighbourhood’-focused retail destination.
Combined, the five businesses operating from the Arranmore Drive property generate a net rental income of $181,990. The tenancy schedule comprises:
• Texture Café occupying 127 square metres of space on a lease running through until 2022 with one further four-year right of renewal
• Real estate agency Melanie Broodryk Real Estate occupying 148 square metres of space on a lease running through until 2025, with two further three-year rights of renewal
• Infinity Laundromat occupying 73 square metres of space on a lease running through to 2024 with two further six-year rights of renewal
• Inside Hair Design occupying 73 square metres of space on a lease running through to 2021, with two further three-year rights of renewal
• Chinese Food Bar takeaways occupying 69 square metres of space on a lease running through until 2023 with three four-year rights of renewal.
Mr Chaudhary said that with budgeted rental increases coming into effect for many of the tenancies over the short to medium term, rental income from the block was forecast to increase to $201,858 by the end of the year.
“Sitting on the intersection of Arranmore Drive and Flat Bush School Road, the shops are located close to the proposed four lane arterial route linking up East Tamaki with Drury,” Mr Chaudhary said.
“The business reference in the property’s council zoning is totally consistent with the tenancies currently in place – sustaining residents in the immediate vicinity with what the council calls: “frequent retail and commercial service needs.” The existing tenancies within the block operate in a complimentary nature with each other.”
Ms Weng said that from a longer-term redevelopment perspective, Auckland Council’s neighbourhood centre zoning for the site allowed for the potential construction of a mixed-use retail and residential block up to 13 metres high on the property’s currently underutulised corner portion.
“Any such development could feature shops at ground level and up to three storeys of apartments above. With the property sitting immediately adjacent to existing residential dwellings in all directions, any development of apartments would be consistent with maintaining the area’s residential nature,” she said.