Downtown restaurants and apartments are among this month's auction catalogue, writes Colin Taylor.
Three food and beverage outlets in downtown Auckland are among a selection of commercial and industrial properties to go under the hammer on September 26 as part of Bayleys Real Estate's latest Total Property auction.
A shop being offered for sale off the plan is one of only nine ground-floor Queen St frontage retail premises that will be created at the redeveloped 396 Queen St.
The 64sq m unit is being marketed by Millie Liang and James Chan of Bayleys Auckland with an eight-year lease to a Gloria Jean's Coffees' franchisee from the completion of the premises, projected to be in June 2013.
The unit will produce initial annual net rental income of $95,000, with two-yearly rent reviews to the higher of market or the Consumer Price Index rate of increase.
Founded in the United States in the late 1970s, but now Australian owned and locally operated, Gloria Jean's Coffees has over 1000 coffee houses in 39 countries. It opened its first store in New Zealand in 2003 and now has 23 outlets here.
Gloria Jean's is moving from its previous location at 360 Queen St to the new premises which will have a 5.4m high ceiling and be part of a substantial refurbishment of the high rise building on the corner of Queen St and Mayoral Drive in the heart of Auckland's education and entertainment district.
Liang says a further 14 retail premises on the Mayoral Drive side of the project have been sold and the developer intends to retain and lease the remaining Queen St shops.
She says the redevelopment will transform the corner of Queen St and Mayoral Drive, where more than 10,500 pedestrians pass by each day.
Liang says the new retail complex is part of a major rejuvenation of Aotea Quarter, with the council having spent $100 million on the surrounding area with the renovation of Aotea Square, the development of Q Theatre and an upgrade of Lorne St.
Also up for auction, through Richard Yang and Nicolas Ching of Bayleys Auckland, is a 110sq m unit on the ground level of the Metropolis apartment building at 42 High St in the CBD's retail and cafe strip.
The unit has a 2012 capital valuation of $1,560,000 and is occupied by the Alp Ice cafe, restaurant and bar which has a four year lease from May 2009 with three four-year rights of renewal. The unit is producing net annual rental income of $102,000, with two-yearly rent reviews.
The cafe, which has indoor and outdoor seating, serves breakfast, lunch and evening meals and is well known for its Greek party nights.
Richard Yang says it is one of a number of retail units incorporated into the Metropolis development and strategically positioned on the High St side so tenants would benefit from the high volume of pedestrian traffic along the street.
"Metropolis is widely recognised as one of the highest quality and meticulously designed apartment buildings in Auckland and this is also reflected in these modern retail units which have excellent, upmarket fit outs," says Yang.
"They are set back under the building to provide good shelter and cover for pedestrians and customers and blend in well with the mix of diverse shops, cafes and bars and the urban village atmosphere that surrounds Metropolis."
Another CBD property up for auction encompasses two adjoining units on the ground level of the Celestion Waldorf apartment and hotel building at 19-23 Anzac Ave. It is being marketed by Tony Chaudhary and Janak Darji of Bayleys Manukau in conjunction with Nicolas Ching of Bayleys Auckland.
The units totalling 192sq m are occupied by a Little India restaurant, part of a chain that was established in Dunedin in 1991 and which has expanded throughout New Zealand and now has 18 premises from Auckland to Invercargill.
Chaudhary says the restaurant specialises in family recipes which come from the Punjab region in northern India.
"They use traditional tandoors for cooking. They have a clay pot and are fired by charcoal which gives their naans and meat its authentic flavours."
The restaurant has a six-year lease from August 2010, with rights of renewal for a further nine years, which is producing net annual rental income of $80,000.
Chaudhary says the property has been extensively fitted out by the occupants and incorporates a modern interior design with the larger 155 sq m unit occupied by the restaurant, with a kitchen to the rear, and the other smaller 39sq m unit used as the restaurant's bar and lounge area. It is adjacent to and accessed from the foyer of the Waldorf apartment complex.
"The units offer a good standard of open-plan space, with polished concrete floors, good lighting and air conditioning," says Chaudhary.
The building has excellent street exposure near a main intersection where Anzac Ave, Beach Rd and Customs St East converge, says Ching.
"This intersection is recognised as being a main entry point to the downtown CBD, with about 8000 cars passing along Anzac Ave daily during the working week."
Also for sale by deadline private treaty in Bayleys' latest Total Property portfolio is a large ground-floor unit in the Prince Albert apartment building at 41 Albert St which is being marketed by Ching and James Chan, also of Bayleys Auckland.
"It encompasses a significant floor area of 650sq m with a substantial frontage on to Albert St and a high stud of 4.8m," says Ching.
"The space was extensively refurbished in 2011 and was subdivided into two retail tenancies, one of which is occupied by a convenience store and the other by a souvenir shop.
The property is providing holding income of approximately $130,000 per annum net from monthly tenancies but would be available with vacant possession, says Ching.
He says the space, which has also previously been used as a restaurant and bar, would be suitable for either retail or office use.
"It's in a good central city position next to the recently upgraded St Patrick's Square Reserve, with most of the CBD's amenities and the waterfront within easy walking distance."
The unit has automatic fire sprinklers throughout, heat and smoke detectors and a fire alarm system and is part of a six-level character building which has apartments above.
Offers for the property close on September 28 and Ching says it is likely to sell for below its capital valuation of $1,880,000.