Amid extremely high demand for retail investments anchored by secure tenants, a new Burger King restaurant in fast-growing Silverdale, North Auckland is coming up for sale.
CBRE agents John Bedford and Deborah Dowling are marketing the property at 1-5 Wainui Rd, which includes a recently-opened Burger King drive through restaurant as part of a larger new retail/office development.
The property will go under the hammer at auction on Thursday February 20 at 11am at CBRE’s offices at Level 14, 23-29 Albert St, Auckland.
The Burger King restaurant opened in December 2019 with a long initial lease term of 15 years. It is one of only two drive-through food outlets in Silverdale, says Bedford.
“This sale is likely to attract significant interest in the auction room based on its prime location in a high-growth locality, along with the new, high-quality build and the long lease to a global brand,” he says.
“When it comes to the key investment fundamentals buyers are looking for in the commercial property market, you’d be hard pressed to match those on offer here.”
A business such as Burger King makes an ideal commercial tenant, Dowling says. “Burger King is a well-established, large international corporation with plans for further expansion in New Zealand, so this property will be seen as a very attractive long term, passive, income-generating holding.”
Founded in 1953 in Florida, USA, Burger King is the second-largest fast food hamburger chain in the world and serves more than 11 million customers daily.
In 2010, 3G Capital, a global multi-million-dollar investment firm focused on long term value creation, purchased Burger King Corporation, making it a privately-held company, says Bedford.
“Since opening its first restaurant in New Zealand in 1993, Burger King has grown to employ 2600 people nationally across 83 restaurants. The company is also proud to source all its beef, chicken, buns, tomatoes, lettuce and cheese from New Zealand growers and producers.”
The lease to Burger King’s local operator, Antares Restaurant Group Ltd, generates annual net rental income of $220,000, with future rental growth over the term of the lease.
Following the expiry of the initial 15-year lease term, four further rights of renewal of five years each are available to Antares, giving a possible final expiry date of December 2054.
The 265sq m Burger King building includes a drive through facility and dine-in seated area, with 18 dedicated car parks. It was constructed to a high standard in 2019 and has a 100% seismic rating.
Burger King occupies the upper portion of the 1,129sq m sloping site, with a multi-unit retail and office development under construction on the remainder of the property. These units will be accessed via a separate dedicated driveway, says Dowling.
“The retail and office units are expected to be completed by late 2020 or early 2021 and while they are yet to be formally offered for lease, we have already received significant interest from potential tenants and owner-occupiers and expect them to be well received in the marketplace.”
The property occupies a highly visible corner site right on the Hibiscus Coast Highway just 2km from the Northern Motorway interchange, Bedford says.
“This is a high-profile development which has extensive exposure to both the Hibiscus Coast Highway and Wainui Rd. The site has extremely user-friendly vehicle access, and pedestrian access will also be improved with a new walkway to the Silverdale Street shops.”
With nearly 20,500 vehicles passing the site daily, the property is very well positioned for residents coming and going from the extensive Millwater residential catchment nearby, as well as the Milldale residential development which is well underway.
The western end of Wainui Road will feature a bridge connecting the two subdivisions, giving even easier access to the Burger King restaurant, he adds.
“This property is ideally placed to capture business from a very large residential catchment which is still growing. The population of the Rodney ward is projected to grow by nearly 60% between 2006 and 2031.”
The property is located opposite the Silverdale Centre, which includes large tenants such as Noel Leeming, The Warehouse, Farmers and Countdown. Many other retail, office and industrial property occupiers are also now based in Silverdale with construction also due to start on a new Mitre 10 Mega, says Dowling.
“A lack of available commercial land supply in Auckland is prompting many business owners to move north for an easier commute and a better lifestyle,” she says. “As such Silverdale has evolved into the main commercial hub for the Hibiscus Coast and northern Rodney region, making it a highly desirable location for commercial property investors.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
