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Diversified Albany village investment - Colliers

Contributor:
Fuseworks Media
Fuseworks Media

A fully tenanted, split-risk commercial investment property is for sale in the heart of the North Shore’s tightly held Albany village.

Well located in a growth area with easy motorway access, the property at 235 Dairy Flat Highway, Albany, Auckland, comprises a standalone 428sq m building on an 809sq m freehold site.

The diversified asset provides four income streams underpinned by two longstanding anchor tenants, returning $138,377 plus GST in net annual rent.

Business Local Centre zoning allows for future redevelopment of up to 18m in height, providing a new owner with long-term options to maximise the value of the underlying land.

Colliers International has been exclusively appointed to market the property for sale by way of deadline private treaty closing at 4pm on Wednesday 26 August, unless sold prior.

Shoneet Chand, Director of Colliers North Shore, says investment properties in Albany village rarely come to the market for sale.

"After well over a decade of positive ownership, the vendor has decided to pass the baton to new owner. This presents an exceptional opportunity for an astute investor to acquire a fully tenanted asset located on the edge of the fast-growing Albany commercial and residential basin.

"The investment is anchored by a popular restaurant and bar, alongside an established laundromat business, with two other commercial tenants providing a diversified income stream.

"Built in the 1980s, the property comprises a two-level commercial building that has been well cared for and recently repainted.

"The property has easy access from both the front and rear, with 16 on-site car parks. A retail presence to both frontages provides good exposure to passing traffic, while the central location provides easy access to both the Northern Motorway and Albany Expressway.

"The location, zoning and split-risk income make this a superb long-term investment for an owner seeking passive income now, and future redevelopment potential in the future."

Anchor tenant Toucan Bar pays $63,231.48 in net annual rent on a 12-year lease with rental reviews every two years. A six-year right of renewal extends the final expiry date to May 2033.

Albany Laundry pays $47,614 in net annual rent on a nine-year lease expiring in October 2026, with rental reviews every two years.

Two travel businesses occupy the remaining two tenancies, paying a combined $27,531.52 in net annual rent.

The property is located only 19km from Auckland’s CBD and within easy walking distance to New Zealand’s fourth largest shopping centre and major new residential developments.

Matt Prentice, Director at Colliers North Shore, says Albany has been identified by Auckland Council as one of three key growth nodes outside of the city centre.

"Albany will be a focal point for future employment, commercial and social activity as Auckland continues to grow and develop.

"It already benefits from excellent access to the transport network including the Northern Motorway and the Northern Busway and its associated park and ride facility.

"These connections will be improved greatly as work continues on the $700 million Northern Corridor project, which involves widening State Highway 1 in both directions, a new connection to SH18 to link the motorway with the Western Ring Route and airport, and safe new routes for bus users, pedestrians and cyclists.

"This connectivity will continue to attract further mixed-use and commercial developments in the Albany area."

Albany is home to New Zealand’s fourth largest shopping centre - Westfield Albany, just 1 km away - and Massey University, which is one of Auckland’s largest tertiary education providers.

Local businesses in the area include The Warehouse, Pak’NSave, Albany Toyota, PlaceMakers and a Quest Hotel, among others.

"These businesses are all supported by a strong local residential catchment and local aged care centres, and provide a main centre for the wealthy nearby community of Coatesville," says Prentice.

"Further developments in the area include the recently completed National Support Centre for Mitre 10 as well as the new 200-unit Rose Garden apartments, plus numerous retail, office and commercial developments.

"The property for sale offers a superb chance to invest in this high-growth location."

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