The only commercial investment property in Palm Beach on Waiheke Island is being presented to the market for sale and offers buyers the opportunity to acquire a unique asset in one of New Zealand’s most sought-after destinations.
39 Palm Road in Palm Beach on Waiheke Island is a freehold property that contains four tenancies and offers a total net lettable area of 332sq m on a prime 1,029sq m site.
The property is fully leased and includes a restaurant, convenience store, wine shop, and a self-contained residential unit. The total annual net rental income from the property is $130,000 plus GST.
The property is conveniently located a mere 100m from the beach with a bus station directly outside the shops providing access to the rest of Waiheke Island. It also has five dedicated car parks and an abundance of public parking in the general vicinity.
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Colliers brokers Adam White, Gareth Fraser, and Logan Roach have been exclusively appointed to market the property for sale by auction to be held at Colliers, HSBC Tower, Level 23, 188 Quay Street, Auckland and online via Auctions Live at 1pm on Wednesday 16 March, unless sold prior.
Popular restaurant and cafe Arcadia leases Unit 1, which covers 120sq m and has 27sq m of decking. Their agreement, which began in November 2021, runs for three years, and offers two further rights of renewal for three years each, leading to a final expiry of 31 October 2030. The lease provides $55,000 plus GST in annual net rental income.
Unit 2, spanning 120sq m, is occupied by the Palm Beach Store and their three-year lease began in May 2021 and offers two further rights of renewal for three years each, leading to a final expiry of 15 May 2030. Their lease provides $45,000 plus GST in net annual rental income.
The Palm Beach Wine Store occupies the 30sq m Unit 3 and they began a three-year lease on 1 December 2021, which provides $15,000 plus GST in net annual rental income. There are two further rights of renewal in place for three years each leading to a final expiry of 30 November 2030.
Unit 4 is the 35sq m self-contained accommodation unit and is leased on a one-year term that expires on 30 November 2022.
The property is zoned land unit – Commercial 3 (local shops) under the Auckland Council District Plan – Hauraki Gulf Islands Section – Operative 2018.
White says this is a premier split-risk investment opportunity in a prime location.
“Palm Beach has long been thought of as the best beach on Waiheke Island due to its favourable location on the northern side of the island, which provides a safe swimming environment with calm water and plenty of sun,” White says.
“The immediate residential catchment comprises some of New Zealand’s most prized properties and is an incredibly sought-after area.”
Fraser says the favourable zoning and low site coverage offers potential for future development.
“Properties in Palm Beach on Waiheke Island have enjoyed sustained capital growth and the option exists to further intensify the multi-purpose nature of this site,” Fraser says.
“This highly desirable location has long been a popular escape for visitors from across New Zealand.”
Roach says this property will present significant upside for the new owner given the growth opportunities and the popularity of Waiheke Island.
“We expect to receive extensive interest in this property given it is so rare to see a site like this one come to the open market,” Roach says.
- Article supplied by Colliers
