Mangawhai Heads retail block on market

Due to scarce investment opportunities, high interest is anticipated in the block at 12 Wood St. Photo / Supplied

A retail block housing three businesses is on the market for the first time in almost two decades, at fast-growing Mangawhai Heads, just over an hour's drive north of Auckland.

Colliers International is exclusively marketing 12 Wood St for sale by auction on June 21, unless sold earlier.

The 1388sq m freehold property is within the tightly-held retail hub of the holiday and lifestyle hotspot.

Broker Euan Stratton, who is marketing the property with colleagues Jimmy O'Brien and Sean Honeycombe, sees it as a rare chance to secure a foothold in Kaipara's fastest-growing community.

Stratton says the property has three tenancies, with the option of reverting to four in the future.

"This excellent split-risk investment is fully-tenanted, with multiple income streams earning $118,556 net in annual rent," he says. "There are limited opportunities to secure commercial assets in this location, so the property offers significant add-value potential."

O'Brien, managing director of Colliers' North Shore office, notes that 'improvements' include a 519sq m building, a 51sq m courtyard and a 40sq m garden.

"The shop frontages benefit from a canopy which runs the full length of the building and adjoins the off-street car parking at the front, which is maintained by the council. Private parking for the tenants is available at the rear, says O'Brien.

The three tenancies comprise:

• The newly-opened Wood Street Freehouse which occupies a 197sq m unit, plus the adjoining courtyard and garden areas. "With its excellent menu and large outdoor dining area, the restaurant and bar has become a popular local fixture. Residents and visitors alike are attracted to its central location, range of craft beer and great food designed to be shared," says O'Brien. The Freehouse has a four-year lease with three rights of renewal, expiring in December 2031.
• Mangawhai Books and Gifts in the 202sq m middle tenancy, which was once two separate tenancies. "This gives the owner the option of reverting to four retail tenancies in the future," O'Brien says. The shop includes post office boxes with the ASB money machine on a separate lease, located in the front corner of the shop. The bookshop has a four-year lease with one right of renewal expiring at the end of March 2024, while the ATM is on a three-year lease with three rights of renewal, expiring at the end of October that year.
• Mangawhai Pharmacy leasing the 114sq m end unit. The business is on a four-year lease, expiring at the end of April 2021. The property is zoned for Commercial use, allowing for shops, offices and retail on a scale suited to the surrounding community and residential areas.

Honeycombe says Mangawhai is Kaipara's fastest-growing community, thanks to an influx of new residents and holidaymakers, predominantly from Auckland.

"Kaipara District Council has embarked on a long-term project to develop a new town plan, encompassing everything from land development, density and urban design, through to roads, water and stormwater systems."