A service station on a high-profile corner site in the West Auckland suburb of New Lynn is being offered to the market for sale and presents buyers with the opportunity to acquire a property with a well-known tenant that is signed to a long-term lease.
26 Titirangi Road, New Lynn is home to Mobil who has occupied the 3,242sq m landholding for over 30 years. The freehold property is spread over four separate titles that are zoned Residential – Mixed Housing Urban Zone under the Auckland Unitary Plan.
The site benefits from its dual frontage and level contour while it also offers three access points.
Mobil’s current 15-year lease runs until November 2027 with two further rights of renewal of six years each, leading to a final expiry of 7 November 2039. Mobil Oil New Zealand Limited is a subsidiary of global firm Exxon Mobil Corporation.
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The annual rental income from the property is $282,000 plus GST and operating expenses and there is built-in rental growth on offer through future CPI and market rent reviews.
The lease is a full ground lease to Mobil who own, manage, and maintain all of the improvements on the site, including the fuel tanks and are responsible for any future remediation, if required.
Titirangi Road is a busy arterial route with high traffic volumes, making it well suited to commercial activity. While this section of the road is more residential in character, the surrounding area includes a mix of housing and convenience retail. Directly opposite the site on Margan Avenue is a retail block featuring a gym, fruit store, Salvation Army, Chipmunks Playland, and other local businesses.
Colliers Brokers Shoneet Chand, Matt Prentice, and Nelson Raines have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 20 August, unless sold prior.
The property houses Mobil’s On the Run convenience store that complements the fuel offering, as well as a car wash and Subway sandwich chain.
Chand, Director of Investment Sales at Colliers, says this property is one of the most prominent and highly visible service stations in the area.
“Buyers will be drawn to the combination of having a well-known tenant that is signed to a long-term lease. The future rental growth opportunities also add considerable appeal that will catch the eye of investors,” Chand says.
“This property benefits from underlying investment fundamentals and Mobil has shown a strong commitment to this location having occupied it for over three decades. Mobil could tenant the property for many years to come if all future rights of renewal are taken up.”
Prentice, Director of Sales and Leasing at Colliers, says New Lynn will benefit from continued investment from Auckland Council that will create a vibrant look and feel for the area.
“The subject property sits around 12.5km south-west of Auckland’s CBD and is a short drive from the New Lynn commercial centre that offers a wide range of amenities,” Prentice says.
“Popular retail offerings such as Bunnings, The Warehouse, and LynnMall are all nearby.”
Raines, General Manager of Colliers West Auckland, says while the current tenant has extensive renewal options, buyers with a long-term view will recognise the potential on offer down the line.
“Based on the site’s zoning and surrounding residential profile there is scope to consider developing the property in the future and intensify the usage through housing,” Raines says.
“This purchasing opportunity offers a steady rental stream for the foreseeable future with options to explore later on.”
- Supplied by Colliers
