New Beachlands commercial in Pohutukawa Coast Shopping Centre
JLL marketing two Beachlands commercial blocks
Two freehold commercial opportunities located in the new Pohutukawa Coast Shopping Centre, are being marketed by John Binning of JLL. The properties will either be sold together or separately by expressions of interest closing 4pm, Wednesday 10 October, if not sold prior.
Block A sits on 1,613sqm site that fronts on to busy Beachlands Road. The building has a floor area of 1,296sqm and is tenanted by Beachlands Medical Ltd, who operate over the first and second floors, returning $390,914pa.
Block B2 is a 743sqm site. The building has a total floor area of 1,027sqm and consists of a mix of retail stores, offices and a gymnasium. Tenants include Domino's Pizza, Harcourts Realty, Allfit 24/7 Fitness, Beachlands Management office and You at Best. This block returns $304,152pa and benefits from exposure to Kouka Road and Mahotonga Avenue.
The tenants in Block B2 are on lease terms that range from six to 12 years, with all the leases commencing in 2017. The longest lease belongs to Allfit Limited, who occupy the largest retail space of approximately 533sqm.
The weighted average lease term (WALT) for Block A is approximately eight years and the WALT for Block B2 is closer to nine years.
"The income from these two prominent properties is $390,912pa and $304,152pa totaling $695,066pa. It is zoned Business – Local Centre, which is significant because there is a limited supply of commercially zoned sites in this area," says Binning.
The Pohutukawa Shopping Centre's anchor tenant is Countdown Supermarket, which attracts regular custom to the Centre. The specialty retail stores in Block B2 offer potential for rental growth.
"The Pohutukawa Shopping Centre is a crucial service facility for the area. It has been well planned and constructed to aid in the growth of the area. The retail stores and medical centre provide a much needed service to the local community and the demand is evident in the fact that there is very little vacant retail space there," says Binning.
Beachlands is a growing area of Auckland, with the number of residents predicted to grow from 7,870 in 2017 to 12,050 in 2043 based on a medium growth scenario, an increase of 53 per cent.
The Beachlands area is home to a high number of children between the ages of 5-19 years and also adults between the ages of 35-55 years. This demonstrates it is a family friendly area. Beachlands residents have an average personal income of $41,000 per annum and household income of $101,600 per annum, which is higher than the Auckland Regional average of $29,600 and $76,500 respectively. The area also has household ownership of 78 per cent, compared to the Auckland Regional average of 62 per cent.
Over the past 10 years the area has seen a surge in demand. There are many reasons to move here, the beach, marina, and accessibility to key areas of Auckland with the Airport only 35 minutes' drive away, CBD 44 minutes and Botany Town Centre 20 minutes.
The properties are located on the south eastern outskirts of Beachlands, a small coastal town that was originally subdivided in the 1920s as a holiday destination. Since the 1950s the area has grown as a weekend or holiday retreat area. However, more recently the area has experienced further growth with more people choosing to live there and commute to work by road or ferry.
Residential subdivisions such as Pine Harbour and Spinnaker Bay are home to many residents, with further construction taking place further to the south of the township at present.
Approximately 9,086 cars pass the site along Beachlands Road each day during the working week and close to 7,000 cars pass the site each day on the weekend.