A commercial building that is home to a popular cafe in Milford on Auckland’s North Shore is available for purchase offering buyers the opportunity to secure a hospitality investment with a proven tenant.
Located at 10 Milford Road, the property has 174sq m of net lettable area on a 369sq m freehold site. There are also 11 dedicated car parks offering convenience for customers.
Paulo Cafe is the tenant at the property and recently began a new six-year lease that runs until 1 February 2031.
There is a further right of renewal for two years that is available, leading to a final expiry of 31 January 2033.
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The net annual rental income from the property is $84,142 plus GST and operating expenses, and there are market reviews scheduled every two years from 1 March 2027.
The property enjoys a prime position within Milford’s retail district. Milford Shopping Centre, which is anchored by a Woolworths and Chemist Warehouse and boasts a broad array of high-quality shopping, is only a short walk away.
The property is zoned Business – Town Centre Zone under the Auckland Unitary Plan.
Colliers Directors Janet Marshall and Shoneet Chand have been exclusively appointed to market the property for sale via auction to be held at Colliers North Shore, Level 1, 129 Hurstmere Road, Takapuna at 11am on Tuesday 2 December, unless sold prior.
The tenancy comprises a near-rectangular floor plan with extensive glazing to the frontage, ensuring strong natural light and street visibility. The property has been fitted out for cafe use and includes dedicated kitchen fixtures and fittings.
Marshall, Director of Sales and Leasing at Colliers, says this purchasing opportunity offers buyers the chance to acquire an asset that is underpinned by a strong tenant covenant.
“Paulo Cafe has operated from this location since 2018 and is a favourite of the local community. With a new six-year lease and a further renewal available they have made a lengthy commitment to this high-profile location,” Marshall says.
“With future market rent reviews in place there is potential income growth for the new owner.”
Milford is one of the North Shore’s most sought-after coastal suburbs and the subject property offers proximity to the beach, while its prominent street presence means it benefits from passing foot traffic.
Continued investment and apartment developments in Milford have contributed to population growth in the area that will drive an ongoing need for commercial and hospitality services.
Nearby motorway on-ramps can be reached in approximately five minutes, while Milford is also well served by bus routes.
Chand, Director of Investment Sales at Colliers, says Milford’s commercial precinct is a tightly held area, making this an opportunity that warrants serious consideration among discerning investors.
“Buyers that have a long-term view of the asset will recognise the future development potential that is available given the site could be repositioned with the zoning allowing for developments up to 18m,” Chand says.
- Supplied by Colliers
