A two-level commercial building in a high profile position on Lincoln Rd, Henderson is up for sale, with the departure of two of its tenants offering a big opportunity for an owner occupier or add value investor.
The 2369 sq m premises at 199B Lincoln Road, Henderson was previously fully occupied but longstanding bulk retail tenant Beds R Us vacated 555 sq m of ground floor space earlier this year. After-school and holiday care provider “4 Fun”, which occupied 667 sq m on the upper level, has also recently relocated to more space in an adjoining building, although it has a lease commitment until October 31 this year.
“Rather than leasing up the vacant space, the vendor has decided to put the building up for sale semi occupied to provide more flexibility and options for potential purchasers,” says Oscar Kuang who is marketing the property with Bayleys International Division colleagues James Chan and Nicolas Ching. “The property could appeal to an owner occupier wanting a strong presence on one of Auckland’s busiest arterial roads and who could use income from other tenancies in the building to help pay the mortgage.
“Alternatively, it could also appeal to an investor looking for an offering that has add value angles - which this one certainly does given high tenant demand for premises in this part of Lincoln Rd which is across the road from a massive Mitre 10 Mega store and also close to big Pak‘nSave and Countdown supermarkets.”
The property is for sale by tender, closing 4pm, June 29 unless sold prior to that date.
It is currently generating annual net passing rental income of $286,933 plus GST, after deducting non recoverable operating expenses from the expired Beds R Us lease. This includes income from the “4 Fun” lease until it expires at the end of October.
Kuang says, based on current rentals being achieved in this location, it is estimated the property could generate annual net rental income of approximately $443,000 if fully occupied.
The building’s largest occupant is a Genghis Khan restaurant – one of six franchised Mongolian barbeque buffet eateries in Auckland. It occupies 612 sq m in the rear part of the ground floor on a six-year lease from December 2012 with one six-year right of renewal. “This a fully licensed bar and restaurant which has seating for more than 150 customers with one of its features from an investment point of view being its 18 gaming machines,” says Kuang.
On the upper level, Results Fitness for Women, a health and fitness gymnasium club that caters exclusively for women with over 600 memberships, occupies approximately 544sq m of space on a lease expiring in December 2019, with no rights of renewal.
“This also gives the next owner the flexibility to negotiate a new lease with the gymnasium which has a high quality and extensive fit out, find a new tenant or occupy that space themselves,” Kuang says.
199B Lincoln Rd is the closest unit to Lincoln Rd in a substantial complex of commercial buildings which share over 200 common carparks and has easy access for vehicles travelling in both directions along Lincoln Rd, says Nicolas Ching. Neighbouring tenants include PINS, an 18- lane tenpin blowing complex, Geoff's Emporium, the Horizon Radiology centre and a La Prochetta Italian bar and restaurant which is located in a standalone building.
Another neighbouring property at 207 Lincoln Rd is occupied by Te Wānanga o Aotearoa, one of New Zealand's largest tertiary education providers which provides a wide range of education courses. 199B Lincoln Rd backs onto Te Pai Park, home to West Auckland’s main netball complex and a tennis club.
The space vacated by Beds R Us at the front part of the ground level is directly opposite one of the car park entrances off Lincoln Rd. “Its arc shape glass frontage provides maximum profile and excellent signage opportunity, offering any retail or other commercial occupant substantial exposure to over 40,000 vehicles that travel along Lincoln Rd on average per day,” says Ching. “The upper floor has a similar layout with the area previously occupied by 4 Fun, also at the front of the building overlooking Lincoln Rd, providing good brand profiling opportunities as well.”
The building, which was built in the 1980s, has concrete foundations and flooring and concrete column and beam structural support plus a concrete block rear wall, with lift access to the upper level. It has an A grade seismic assessment of just under 100% of New Building Standard.
James Chan says Lincoln Road is a major gateway to and from West Auckland and the Auckland CBD, providing the main transport link between the North Western motorway and Henderson’s commercial centre which makes it a natural draw card for business investment.
“Lincoln Road and its surrounds is a thriving retail, commercial and industrial precinct which has benefitted from substantial development over the last decade and is now an extremely sought after location.”