An investment property leased to a longstanding tenant in a busy commercial precinct in the Auckland suburb of New Lynn is on the market for sale.
The property at 3002-3006 Great North Road, Auckland, is being marketed by Leo Zhang and Nigel Ingham of Ray White Commercial Auckland, for sale by auction on April 8.
The freehold property is fully occupied by Enterprise Motor Group, which has operated a vehicle dealership there since early 2008, says Zhang.
“Enterprise Motor Group is very well established at the property, having occupied the site for the past 12 years. The company has also just renewed its lease for a further term of six years, demonstrating their commitment to this location.”
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Enterprise Motor Group’s long tenure at the property is expected to be just one of the factors which will appeal to bidders in the auction room, Ingham says.
“This property is a fantastic passive investment, with a set of highly attractive key attributes including a high-profile corner site, excellent build quality and a well-established tenant,” he says.
“In the current environment, where the search for better returns means more and more investors are seeking out accessibly-priced commercial property assets, this is expected to attract strong interest.”
The site is home to one of Enterprise Motor Group’s four branches, with others located in Manukau, Hamilton and Gisborne. The company has been selling used cars in New Zealand since 1970.
The new lease to Enterprise Motor Group (New Lynn) Limited, which commenced in January 2020, returns $171,257 in net annual rental income and also includes a hard ratchet clause, meaning the rent can not be reduced, says Zhang.
“There is currently tremendous demand for commercial property investments in this price bracket, which is accessible to many individual investors. The solid income level, new lease term and the hard ratchet will be a big plus for many of these buyers.”
The 2680sq m site contains just 827sq m of building area, equating to 31% site coverage. This enables Enterprise Motor Group to park around 75 vehicles on the yard area, with a further 20 inside.
The building on the site is of excellent quality, having achieved an A+ grade, 100% new building standard rating for seismic strength.
The potential to undertake future development on the property is expected to be another drawcard, Ingham says.
“This property as it is currently offered is a fantastic passive investment, which will provide years of income stability to its new owner. However, strategic buyers with a view to the long term will likely be attracted to the low site coverage and high-profile corner location, which make the site an ideal location for future development incorporating a similar or alternative use.”
The site benefits from a “massive” profile to both Great North Road and Portage Road, Zhang says.
“This property has the benefit of an excellent corner location on one of the most popular thoroughfares for commercial real estate investors and occupiers in Auckland. The fact that countless retailers in various sectors have chosen Great North Road as their preferred business location is testament to the high-profile nature of properties along this road, which is a major thoroughfare and the second-longest road in Auckland.”
The popularity of Great North Road among occupiers has also made it a tightly-held investment location, says Ingham.
“Commercial property on Great North Road is highly sought-after among investors and when well-tenanted buildings on this strip hit the market, they tend to get snapped up.”
The property is located on the western corner of Great North Road and Portage Road in a mixed commercial location just 400 metres from the Lynn Mall Shopping Centre. Surrounded by large and well-established residential areas, New Lynn is a vibrant commercial area that also features one of the busiest rail stations on the western line, as well as a major bus interchange.
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