Dixon said Oakley completed a very substantial high-quality fit-out of the premises - the company's flagship New Zealand store - when its lease began and has maintained the quality of presentation since. It took over the premises after former tenant Louis Vuitton moved to a larger store across the road, next door to Gucci.
Oakley occupies about 155sq m of ground floor retail area with 105sq m of basement storage and amenities.
It is at street level in a 12-floor office building opposite the Deloitte Tower and Bank of New Zealand head office building and beside Exchange Lane - known for its cafes.
"It is in a very tightly held part of Queen St which is sought after by both tenants and investors because of its high volumes of foot traffic.
"We would expect it to offer good rental growth and capital-gain potential over the longer term."
Also up for auction are two retail properties in northern Auckland.
One is a standalone 180sq m building on a 453sq m corner site at 215 Rodney St in Wellsford.
It produces net annual rental income of $42,120 and is occupied by global food business Subway.
The property is being marketed by Cameron Melhuish and James Chan of Bayleys Auckland and Mustan Bagasra, Bayleys Warkworth. "The tenant has been in occupation since 2006 and has confirmed its confidence in the high-profile site on SH1, in Wellsford's main commercial precinct, by having already exercised a six-year right of renewal which comes into effect in September 2012," says Melhuish. "All a new owner has to do is sit back and enjoy the cash flow."
He says it is unusual for a retail property in this sort of price bracket to be available on a freehold standalone title, with most offerings being on a unit title.
The other north-of-the-bridge property is a 48sq m unit at 176-178 Carlisle Rd in Northcross. It is occupied by a kebab shop but also draws income from Vodafone NZ for a telecommunications tower behind.
The property produces net annual rental income of $50,824. The 10-year lease from 2006 to The Lovers Corner Kebab draws just under $40,000 with annual rent reviews to CPI plus 2 per cent. Vodafone's 18-year lease has two-yearly rent reviews to CPI.
The property is at the western end of an 11-unit neighbourhood retail convenience centre on the corner of East Coast Rd and Carlisle Rd.
Tony Chaudhary of Bayleys Manukau, marketing it with Claire Rawkins of Bayleys North Shore Commercial, says the centre was opened in 2004 and it's the first time this unit has been up for sale. "The tenants have kept the premises in immaculate condition and it offers a good investment opportunity for smaller investors, given its built-in rental growth."
At the other end of Auckland, a 550sq m retail building on a 596sq m site at 81 O'Shannessey St in Papakura is for auction fully leased to two tenants, providing total annual net rental income of $50,700. It is being marketed by Peter Migounoff and Mike Ashton of Bayleys' Counties office.
A Civic Video outlet generates $34,671 of the property's income while the rest comes from a Family Warehouse store. Bayleys recently sold the nearby Salvation Army Family Store at 69-71 O'Shannessey St for $725,000 at an 8 per cent yield.
