Long term Titirangi retail investmentSave
By True Commercial
A high-profile retail property at Titirangi Village is expected to appeal to developers or investors seeking a foothold in the West Auckland suburb.
Colliers International brokers Deborah Dowling and Michael Bray are marketing 408-416 Titirangi Rd and an adjacent property at 490 South Titirangi Rd for sale by auction on May 10.
Dowling says the 8939sq m freehold site comprises a 905sq m, two-level retail building with five street front tenants, ample parking and surplus development land to the rear.
The site's zoning under the Unitary Plan allows for future Mixed Use retail and residential development of up to three storeys.
Dowling says the site would suit further retail development on the street front and residential options on the vacant land to the rear.
The property would also appeal to investors looking for a passive long term hold.
"This is a highly attractive split-risk investment offering plenty of potential in an area where developable land is rare and tightly held," Dowling says.
"Investors can draw on multiple income streams from longstanding tenants, many of whom have been established at the site for decades. Alternatively, developers can draw on the steady holding income while they plan the site's future."
The property generates $267,066 in annual rental income from five tenancies with various lease terms.
Dowling says the site has been in family ownership since 1947, when Amy and Linden Coleman first purchased 412-416 Titirangi Rd.
The family has expanded its landholding twice since then and it's now in the third generation of family ownership.
The Colemans initially built three shops which were occupied by a butcher, dairy and pharmacy.
In the 1950s, they purchased the adjacent property at 408-410 Titirangi Rd and built new premises which were leased to the pharmacy and a new cafe.
The dairy, pharmacy and cafe remain on the site to this day.
The family further expanded the site in September 2015, when they bought the council-owned land to the rear at 490 South Titirangi Rd.
Dowling says the Colemans have given a lot to the Titirangi community for almost 70 years.
"Linden Coleman founded the Titirangi Volunteer Fire Brigade in the late 1940s, and the first fire station was located on a site behind the family land," she says.
"Amy and Linden's daughter Margaret continued the family's commitment to the community as a member of the Titirangi Village Project, which helped to rejuvenate the town centre in the 1990s."
The family had been planning to redevelop the site themselves, and had engaged Cheshire Architects to draw up designs. The resulting plans - which feature a mix of residential and retail units, a public deck with spectacular views, and ample public parking - were intended to reflect the special character of Titirangi Village.
The family sought community feedback on the designs in 2008, and Dowling says the response was overwhelmingly positive.
"However, the family has since made the reluctant decision to move on and allow a new owner to develop the property for the benefit of Titirangi," she says.
Bray says the original building sits on reinforced concrete foundations and features concrete framed walls with masonry infill and concrete parapets.
The floors are timber or a mix of concrete with timber and precast rib infill, while the roof features timber beams and purlins with galvanised iron roofing.
Bray says the premises are in good condition for their age and have benefited from various additions and alterations over the years, including major extensions to the pharmacy and cafe in 1998.
"All five tenancies have main road frontage and extensive views of Titirangi through to the Manukau Harbour."
For many New Zealanders, Titirangi is associated with one of Auckland's best known golf courses, the Titirangi Golf Course.
The area is set to benefit from easy access to the rest of the city following the completion of the Western Ring Route in May.