A portfolio of eight retail units with tenancies ranging from a boxing gym’ and a childcare centre through to an Irish bar and restaurant has been placed on the market for sale.
The units are located at street level within the SugarTree apartment precinct consisting of three residential towers – Prima, Centro and Altro – occupying the city block bounded by Union, Cook and Nelson streets. When completed and tenanted, the towers will be home to some 2,000 residents.
The portfolio consists of five tenanted or fitted out premises and three vacant locations. The tenanted properties include:
• A 659 square metre commercial indoor and outdoor space occupied by SugarTree Lane Preschool childcare centre which is on a lease through to 2033 with three further five-year rights of renewal generating a net rental of $223,600 plus GST per annum.
• A 43 square metre foodservice premises occupied by Cookie Café which is on a lease through to 2022 with two further three-year rights of renewal generating a net rental of $31,500 plus GST per annum
• A 169 square metre premises occupied by 9Round boxing gym which is on lease through to 2028 with two further five-year rights of renewal generating a net rental of $86,710 plus GST per annum
A 122 square metre street-level indoor and outdoor hospitality premises previously occupied by Sally O’Rourke’s Irish-themed bar/restaurant, but now vacant and
• A 55 square metre retail premises occupied by Break Mart convenience store which is on a lease through to 2023 with two further four-year rights of renewal generating a net rental of $35,520 plus GST per annum.
Meanwhile, the three currently vacant bare units are sized 50, 58 and 165
square metres each and are ready for occupation. All eight SugarTree properties are being marketed for sale at auction through Bayleys Auckland, with the auction being conducted at 11am on August 7.
Bayleys Auckland salespeople James Chan and Damien Bullick said the permutation of properties within the portfolio offered both diversity and scale to potential investors.
Mr Chan said the ground floor retail units were located around SugarTree’s central courtyard walkway linking Union Street to Nelson Street. All of the units have new build standards ratings of 100 percent – equating to an A+ grading.
“The portfolio is structured to offer options for both investors, and business owner/occupiers seeking shell space. With vastly varying revenues from the tenanted properties - as dictated by their floor space - there is a broad profile of units to select from a return perspective,” he said.
Mr Bullick said the portfolio of commercial units had been designed to easily morph’ across the retail and services spectrum – enabling tenants to offer non-competing services.
“The units within SugarTree Lane are adaptable and flexible from a floor plate and outlook perspective, so owners of these properties can have confidence that tenant appeal is broad and that the physical space is modifiable to any trend-driven market demand,” he said.
“Under this dynamic, the remaining vacant sites could suit the likes of a dry-cleaners, hair and beauty salon, or liquor store.”
SugarTree is located on the ridge overlooking Central Auckland’s Victoria Quarter precinct just a few hundred metres from SKYCITY’s New Zealand International Convention Centre project currently under construction, and close to both motorway arterial routes and public transport links. The development is one of several apartment blocks rising along Hobson and Nelson streets – including Union Green, Aura Apartments, Zest Apartments and Grace Victoria Quarter.