Multi-tenanted building in Henderson retail centre

"This multi-tenanted property is earning net rental income of $101,632 per annum," says Marie-Anne Molloy, commercial broker with Barfoot & Thompson Commercial, who is marketing 342 Great North Rd for sale by deadline private treaty closing at 4pm on Thursday, March 17, unless it sells earlier by negotiation.

"In addition to the substantial rent already coming in, the property has the potential to increase cash flow by leasing up two vacant areas within the building," Molloy says. "If the building was fully leased, the expected net annual rental would be $151,047."

The property comes with six open car parks to the rear and 21 off site parks which generate additional annual rent of $19,650.

Zoning

The two-level building with a net floor area of  area of 924.8sqm occupies a freehold site of 769sqm, which is zoned ‘Community’ under the Waitakere City Council district plan – a classification intended to permit lighter intensity commercial and service activities while also providing for residential development.

The building was completed in the early 1980s and accommodates first floor offices with ground floor retail below. Surrounding buildings are generally of a similar age and scale.

The tenants include: North Memorials Henderson, Digix Ltd – Web City; the Department of Corrections, Brook Ltd and Wight Optometrists. The two vacant areas comprise areas of 141.3sq m and 116.5sqm.

Lease terms vary from month-to-month up to six years with rights of renewal taking final expiry dates from March 2016 through to the end of 2024.

Site

Molloy says the site is more or less rectangular in shape having a frontage to Great North Rd of 21.86 metres. The eastern side boundary is 37.67 metres, the western side boundary of 34.096 metres and the rear boundary is 21.21 metres.

"A sealed vehicular access way runs below the upper level offices and adjoins the ground retail arcade with car parking spaces provided beneath the upper level offices. This rear portion of the site also provides access to other building's parking areas and adjoins the West City Shopping Centre which also has open public car parking. The contour of the site is generally level and features a northerly aspect to Great North Rd."

Molloy says the property has a modern appearance and is generally constructed of reinforced concrete foundations, footings and concrete column pads with reinforced concrete block structural framing, side walls and concrete beams. Glazing is to the road frontage elevation with aluminium window joinery. The ground level floors are concrete while the first level offices floors are timber while the roofing is iron.

Location

"The Henderson Shopping Centre in which the property is located is a traditional strip type shopping area with retail shops situated on either side of the street," Molloy says.

"In recent years there has been a cosmetic upgrade of the Henderson Shopping Strip with the development of raised pedestrian crossings, traffic islands and wrought iron plant holders and lamp posts. This revamp has given the shopping centre a more upmarket image in addition to providing pedestrian with better access from one side of the street to the other.

"There has also been a further retail expansion within Henderson primarily centred around what is known as the Pioneer Plaza Development. Within this there are a significant number of major retailers including The Warehouse, K Mart, Payless Plastics and Bin Inn Bulk Food Market. These can be described as super stores or bulk goods stores which rely on high turnover of lower priced goods so, in general, these retailers are not in direct competition with Henderson Shopping Strip which is largely comprised of specialty retail stores, banks and other commercial services."

Molloy says 342 Great North Rd is well located for access to major arterial routes in west Auckland and is handy to commercial and financial services within the Henderson Shopping Centre.