Mt Albert medical investment property

The property at 52 St Lukes Rd is leased to White Cross and Mercy Radiology. Photo / Supplied

A freehold medical centre investment property in Mount Albert, near Auckland's popular Westfield St Lukes Shopping Centre, will go under the hammer at the end of this month.

"This sale represents a rare opportunity to own a property with a strong tenant covenant and long-term redevelopment potential," says Jonathan Lynch of Colliers International who, with colleague Hamish Peterson, is marketing 52 St Lukes Rd, for sale by auction at 10am on Wednesday August 29, unless it sells earlier.

Lynch says the large freehold site is well positioned in a high-growth area with a Business Town Centre zoning allowing for future residential or office redevelopment, and leases to two long-established medical tenants earning split-risk annual rent of $226,200.

"This high-profile property is perfectly located between the growing city fringe area of Morningside and the popular residential suburb of Mount Albert," he says.

"With a growth location and abundant potential, it occupies a prime position on St Lukes Road which is a busy main arterial route.

"The purpose-built medical centre was completed in 1994 and has been occupied by anchor tenants White Cross and Mercy Radiology ever since."

An aerial view of the investment medical property for sale in St Lukes Rd. Photo / Supplied

The 1642sq m freehold property comprises a 491sq m, single-level medical centre with 24 on-site car parks.

It is located on a regular-shaped title on the eastern side of St Lukes Road, about 100m north of the shopping centre and the adjacent St Lukes Library.

The location is within the residential catchments of Mt Albert, Kingsland, Balmoral and Morningside. It is well placed on local bus routes and is a short distance to the motorway interchange.

Paterson says the medical centre's appearance is residential in nature, with brick veneer, concrete tiles and aluminium joinery.

"White Cross St Lukes Limited leases the main 366sq m accident and medical centre, with subleases to a pharmacy, physiotherapy clinic and dental surgery.

"The premises are partitioned to include a series of consulting rooms, a waiting room, reception, toilet facilities and a staff room."

White Cross St Lukes Limited pays $165,000 in net annual rent. Its two-year lease expires in March 2020, with a single two-year right of renewal extending the total term to March 2022.

New Zealand Radiology Group Limited, trading as Mercy Radiology, leases the 125sq m area used as a radiology clinic. The clinic is partitioned to include a reception, office, darkroom, X-ray and ultrasound rooms, and toilet facilities.

The company pays $61,200 in net annual rent. Its two-year lease also expires in March 2020, with no rights of renewal.

The site's Business Town Centre zoning under the Auckland Unitary Plan allows for a wide range of intensive mixed-use development – including retail, office and residential – with a focus on commercial activities and growth.

Buildings of four to eight storeys are allowed, depending on the context, with scope for variation in special circumstance.

Town Centre zones are typically located on main arterial roads that provide good public transport links.