By True Commercial
A commercial property in central Takapuna, with longer term residential redevelopment potential, fetched the highest price at Bayleys' latest round of Total Property auctions, selling for $6.8 million.
It was among 15 properties which sold at the agency's auctions around the North Island at a total value of just over $24.5m, with further sales under negotiation.
The Takapuna offering comprised a two-level 995sq m building on a 567sq m site at 178 Hurstmere Rd, Takapuna, with frontage also to Killarney St. It was sold through Brian Caldwell, Ashton Geissler, Michael Nees and Damian Stephen of Bayleys North Shore Commercial at a 3.95 per cent yield, fully leased to a cafe, two restaurants and a hair salon.
Bidding started at $5m and progressed in a series of predominantly $100,000 and then $50,000 increases before the property was passed in at $6.5m. Post auction negotiations then added a further $300,000 to the final sale price which equated to a land metre rate of $11.993per sq m.
Caldwell says the site has substantial future development potential up to a height of 24.5m under its new Auckland Unitary Plan Business Metropolitan Centre zoning which has been applied to areas identified for growth and intensification.
"Given its position on the elevated triangular apex of Hurstmere Rd and Killarney St, with dual access from both streets, it is most likely to redeveloped into apartments. The upper levels would benefit from commanding Lake Pupuke, beach and Hauraki Gulf views and plenty of natural light."
The next highest value property to sell was a fully leased 592.5sq m three-level character building on a 276sq m site at 3 College Hill, Freemans Bay, one property back from the intersection with Beaumont St.
It sold for $3,075,000 at a 4.92 per cent yield through Cameron Melhuish, Andrew Wallace and Genevieve Thompson-Ford of Bayleys Auckland City and Fringe team. Retailer Bordertown occupies the basement and ground floor with an office tenant above, on leases running to 2023 and 2024 respectively, and there is also a billboard advertising lease. There are future fixed rental increases in all of the property's three leases.
The most heavily bid-for property at the Auckland auction was a vacant 269sq m building formerly occupied by a bank at 21 Hall Ave in the Otahuhu town centre. The 1960s constructed building on a 397sq m site with five carparks on under utilised land at the rear and a Business Town Centre zoning sold vacant for $1,230,000 through Piyush Kumar, Peter Migounoff, Tony Chaudhary and Janak Darji of Bayleys South Auckland.
Bidding started at $700,000 and raced quickly through to $965,000 at which point the offering was declared to be on the market by auctioneer Richard Valintine. A long sequence of competitive bidding involving multiple parties then followed, with over 60 further bids adding an additional $265,000 to the final sale price.
Other properties to sell at Bayleys' Auckland and Bay of Plenty Total Property auctions included:
• A 668 sq m warehouse, showroom and office unit with 15 carparks at 1 Cebel Place, Albany, on the corner with Bush Rd, which sold for $2,380,000 at a 5.63 per cent yield through Laurie Burt and Matt Mimmack of Bayleys North Shore Commercial in conjunction with Chaudhary and Amy Weng of Bayleys South Auckland. Wesfarmers subsidiary New Zealand Safety Blackwoods renewed its lease for four years in June, with one further four-year right of renewal.
• A 401sq m industrial unit with seven carparks in a modern unit-title development at 8 Piemark Drive, Albany, selling with vacant possession for $1.3m through Burt and Mimmack of Bayleys North Shore Commercial. It has 265sq m of high stud warehousing, with two levels of showroom and office space.
• A 683sq m partly earthquake prone warehouse and workshop building on a 1257sq m roadfront site at 135 Sunnybrae Rd, Wairau Valley, that sold for $1,625,000 at a 5 per cent yield to a car sales business through Geissler and James Kidd of Bayleys North Shore Commercial. A longstanding upholstery tenant recently exercised a final two-year right of renewal over the bulk of the building with a smaller rear tenancy on a short lease
• A 158sq m vacant retail unit with seven allocated carparks at 8 Bishop Leniham Place, East Tamaki was sold with vacant possession for $580,000 through Terry Kim of Bayleys North Shore Commercial. It is part of a 19-unit complex constructed in the mid 2000s to service the rapidly growing population of Flat Bush and Botany South.
• A 978sq m two-level A-grade office building constructed in 2008 on a 1310sq m site with parking for 18 vehicles at 1 Valley Grove Way, Bethlehem, Tauranga, sold for $2,195,000 at a 6.57 per cent yield to an Auckland buyer through Brendon and Lynn Bradley of Bayleys Tauranga. It has two tenancies, with national insurance broker Web Risk Services the anchor occupant.
• Three suburban retail units totalling 170sq m on a 348sq m site at 193 Ranolf St, Glenholme, Rotorua sold for $285,000 at a 9.86 per cent yield through Brei Gudsell and Paul Stewart, of Bayleys Rotorua. Leases range from 12 months to four years, all with renewals.