The opportunity to buy the interests of both the lessor and lessee in a mixed-use investment property on a high-profile corner site in Epsom is available after a receivership sale.
The 450sq m property at 401 to 405 Manukau Rd, on the corner with Queen Mary Rd, is opposite the Alexandra Park Raceway and comprises a three-storey building with retail tenancies on the ground floor and residential apartments above.
The lessor's and lessee's interests have been put on the market for sale by Bayleys by a tender closing on August 23, and are being offered for sale on an all or part basis.
Marketing the properties are Bayleys Auckland Central salesmen Ryan Dixon and Scott Kirk.
"Having Westpac as an anchor tenant within the complex holds considerable value for potential investors," says Kirk. "Westpac is one of the big four banks and is a household name ... so its long-term tenancy significantly enhances the attractiveness of this investment."
The lessor's interest is the ownership of the land with a 21-year lease in perpetuity, incorporating a ground lease with a present contract rental of $71,400 a year plus GST.
In addition to the lessor's interest is a ground-floor leasehold strata retail unit on one title, which comprises three retail tenancies complemented by three two-bedroom leasehold residential apartments above the ground floor.
Westpac (NZ) Investment occupies one of the three ground-floor commercial floor tenancies with a floor space of 149sq m on a six-year term with three three-year rights of renewal.
The remaining two retail tenancies of 154sq m and 101sq m of floor space are vacant. These two tenancies have remained in a "shell" format giving buyers the opportunity to complete fit-out work specific to new tenants' requirements.
The residential levels comprise eight leasehold residential apartments, of which five have previously been sold since the completion of the development.
Each of the three remaining two-bedroom leasehold apartments has a floor area of 75sq m, excluding decks, and feature views over the surrounding residential precinct.
Two of the three apartments are tenanted with weekly rentals of $475 and $530 a week.
Dixon says opportunities to buy both interests, particularly in Auckland's city fringe, are were uncommon.
"Purchasing both the lessor's and lessee's interests may provide investors with the potential to reinstate the freehold, and offer freehold title to the existing residential apartment owners of the building," he says.
Dixon says the three remaining residential apartments are situated within the sought-after Epsom Girls' Grammar school zone and the Auckland Boys Grammar school zone, providing an affordable accommodation option for those wishing to live within these zones.
"The property also benefits from easy access to the central business district via Manukau Rd along with good access to the Northern and Southern motorways," adds Dixon.