The retail property for sale at 83-85 Kitchener St, Milford, is occupied by two restaurants. Photo / Supplied
A split-risk freehold retail investment property with approved resource consent for a first-floor apartment redevelopment is for sale in the affluent suburb of Milford on Auckland's North Shore.
The property, with a net lettable area of 295.7sq m on a 261sq m site, encompasses two ground floor retail tenancies earning $98,000 a year.
"The resource consent is for two apartments upstairs," says Mike Ryan of Colliers International North Shore who, with colleagues Euan Stratton and Matt Prentice, is marketing 83-85 Kitchener Road for sale by auction at 11am on Wednesday, November 9, unless it sells prior.
Ryan says the sale represents an excellent add-value investment opportunity with a purchaser being able to take advantage of the vendor's hard work and planning.
"The successful bidder can reap the rewards of the Auckland's hot apartment market by completing the residential development to the vendor's plans, or by converting the first floor to a single large apartment," he says.
"The first floor could also be converted to an office, taking advantage of the property's 12.2m of frontage on Milford's busy and tightly-held main Kitchener Rd retail strip."
Ryan says the sale represents an ideal opportunity for add-value investors, developers or owner-occupiers looking to occupy the first-floor space.
"The two ground floor retail units are fully tenanted by popular food businesses Soul Sushi and Talay Thai Restaurant," he says.
"A right of way offers access to four designated car parks at the rear of the building, while a recessed street front entrance opens to stairs leading to the 140.2sq m first floor."
Stratton says Soul Sushi occupies a functional, rectangular 76.3sq m shop with modern frontage, display windows and a recessed entrance. The rear of the building houses the kitchen and amenities, and offers access to the rear car park.
Soul Sushi Milford Limited is signed to a six-year lease with almost five years remaining, plus two rights of renewal of four and two years' each.
Stratton says Talay Thai occupies a 79.2sq m tenancy with character timber joinery on the street frontage.
An angled recess entrance opens directly into a compact, functional restaurant, while the kitchen, preparation area and amenities are located at the rear.
Talay Thai is signed to a four-year lease, with just under three years remaining, plus two rights of renewal of four and two years' each.
The ground floor entrance to the first floor is recessed between the two retail tenancies, leading to a straight flight of stairs.
Stratton says a pair of two-bedroom apartments on the first floor for which consent has been received could be constructed to the successful bidder's specifications.
"Once completed, the apartments could earn rent of $50,000 to $60,000 a year," he says.
Prentice says Milford's established commercial centre primarily serves the relatively wealthy suburbs of Westlake, Milford, Forrest Hill and Crown Hill, as well as the greater North Shore area including Takapuna.
"The Milford demographic has changed significantly in the past ten years with a younger population and a growing number of high net worth families being attracted to the area," he says.
"This change is being reflected in the commercial properties in the area with many refurbishments being undertaken to rejuvenate the area."
Prentice says the property for sale is in the block adjoining the Milford shopping centre, which was extensively renovated recently to include a supermarket, food court and a wide variety of stores including high-end fashion stores.
"The owners now plan to extend the centre with 20 new shops and 121 apartments to be known as The Milford," he says.
"The development provides parking and has created an additional focus on Milford, drawing more potential customers to the area, including the retail strip where the subject property is located."
Prentice says the property for sale is at the southwestern end of the established Milford retail district.
"This retail strip has become the fastest growing 'food alley' in Milford with a wide variety of restaurants and cafes within a 50m radius. The property for sale 83-85 Kitchener Road is on the northern side of the road, about 50m from the intersection with Milford Rd and Dobson Avenue."
He says the surrounding development is predominantly low-rise commercial buildings, with a Challenge service station about two properties away.
Directly opposite is a similar mix of buildings which includes a recently completed mixed use development with retail, upper-level apartments and terrace housing.