Northcote investment puts income on tap

A prominent Northcote commercial property offering investors a single contractual income stream, supported by multiple businesses operating across a substantial Business – Mixed Use zoned site, has been placed on the market for sale.

Bayleys North Shore Commercial, Investment and Development Sales director, Michael Nees, together with colleagues Richard Moors and Sam Raines, is marketing the 2,046sqm (more or less) freehold site at 54 Northcote Road for sale by deadline, closing at 4:00 pm on Thursday, 10th September 2026 (unless sold prior).

The asset returns net income of $200,000 per annum plus GST and outgoings through a head lease to established hospitality operator The Beer Spot.

The eight year lease commenced in July 2024 and runs until July 2032, with two further four year renewal rights taking the potential final expiry date to July 2040. Rent is reviewed to market every two years.

Nees says the lease structure will appeal to investors assessing not only income, but the time and complexity required to administer it.

“The owner receives one rental payment and deals with one head tenant, while The Beer Spot manages the various subtenancies operating from the property.

“That distinction is important. The bakery, liquor and other operators create a broader occupancy profile at property level, but the landlord retains the administrative simplicity of a single lease and covenant.”

The arrangement concentrates the owner’s contractual exposure in The Beer Spot, making the strength and duration of that head lease central to the investment case. Approximately six years remain in the current term.

The property comprises an approximately 624sqm two-level building, principally configured for ground-floor hospitality and retail use, with mezzanine office accommodation and amenities above.

Positioned toward the rear of the site, the building leaves an expansive sealed forecourt containing 26 car parks. Its broader frontage to Northcote Road provides visibility, vehicle access and circulation, with Auckland Transport data recording approximately 22,000 weekday vehicle movements near the property.

Bayleys North Shore Commercial director, Richard Moors says the landholding adds a second dimension to an investment initially defined by its lease.

“Only around 30 percent of the site is presently occupied by building area. That does not predetermine a future use, but it gives purchasers meaningful land exposure alongside established income.”

“Additionally, the zoning provides for development to 18 metres, while proposed planning changes signal potential for substantially greater height—reportedly up to 50 metres—subject to the final form and legal effect of Plan Change 120, resource consent and all relevant development controls.”

The property lies close to State Highway 1, with connections north and south, and approximately 2.5km from Smales Farm Bus Station.

Its location is also being reshaped by investment in Northcote’s housing, infrastructure and town centre. The Kāinga Ora-led Northcote development is replacing approximately 300 former social homes with around 1,700 new dwellings, of which 892 had been completed by mid-2026.

Auckland Council’s planned town centre renewal includes new retail, hospitality, offices, apartments, public spaces and community facilities. The new multipurpose community hub is expected to be completed in late 2027, ahead of staged town centre redevelopment programmed from 2028.

“For investors, the proposition begins with six years of contracted income,” Moors says. “Beyond that is a sizeable, visible landholding in a neighbourhood where additional housing, amenity, and infrastructure are steadily changing the commercial context.”