The high growth corner site in Silverdale where four retail properties are for sale. Photo / Supplied
Four retail outlets in fast-growing Silverdale, just south of Orewa and north of Auckland in the Rodney district, are being offered for sale at auction by local private investors.
The properties at 2, 6, 8 and 10 Silverdale St will go under the hammer on November 3 at 11am, unless they are sold by private treaty prior to the auction.
Shoneet Chand of Colliers International, who is marketing the properties with colleague Josh Coburn, says the portfolio of investments - three tenanted and one vacant - offer buyers the chance to acquire affordable commercial properties in a fast-developing location.
The four titles can be purchased separately or together, making up a total land area of 3653sq m with extensive highway frontage.
The 243sq m building at 2 Silverdale St is on a 2440sq m freehold site and is being offered vacant. It boasts a prime location on the corner of Silverdale St and the Hibiscus Coast Highway and offers significant development potential plus a substantial front yard area.
The 109sq m property at 6 Silverdale St is occupied by Silverdale Medical on a two-year lease expiring in June 2013, and returns an annual rental of $107,855.
Next door at No8 is the 374sq m Northbeach Surf & Skate shop, with a newly signed three-year lease generating net rent of $88,014 a year.
The fourth property, at 10 Silverdale St, is occupied by a discount clothing outlet on a two-year lease dating from March 2011. Net annual rental on the 286sq m property is $60,000.
Coburn expects the bite-sized properties to appeal to local individual investors and family trusts, as well as people from other parts of New Zealand who recognise the demographic and commercial growth in the Silverdale area.
"The opportunity to diversify and spread risk through purchasing small retail properties, as well as the potential to develop the sites and add value later, should also appeal to buyers in the auction room," he says.
Chand says: "The properties are located in a high-growth location on a corner site with great profile to the Hibiscus Coast Highway and in close proximity to motorway interchanges.
"In every direction, Silverdale is undergoing substantial growth. About 4500 homes are being built just north of the main Silverdale township, and construction is under way on new Pak'n Save, Bunnings Warehouse, Countdown and The Warehouse outlets in the immediate vicinity of the Silverdale St portfolio."
Coburn said Silverdale was previously something of a backwater, but had recently surged into public awareness - aided by the migration of the large-format retail tenants which had deemed the area to be ripe for investment.
"Silverdale's public amenities have also been improved by the recent construction of ancillary services, including the Northern Swim School, public and private schools and churches," Coburn says.
"Tenants and owner-occupiers are increasingly looking to Silverdale and nearby areas earmarked for commercial development to accommodate growth."
Coburn says the decreasing supply and rising cost of land in the nearby Albany industrial estates is encouraging many commercial tenants to look further north.
Chand says the four-property retail portfolio is ideally positioned to benefit from the area's growing population and development as a business hub, owing to its high-profile position in the heart of Silverdale.
"Around 35,000 vehicles pass the properties every day and this is expected to increase with the development happening in the area, especially the neighbouring bulk
retail stores and supermarkets," he says.
"There is little retail vacancy in this up-and-coming area and properties tend to be tightly held."
Colliers International's national auction manager, John Bowring, says the North Shore commercial property market is continuing to thrive.
"We expect these properties to generate a good turnout in the auction room owing to their high-profile location and the fact that this region continues to grow and grow."