Handsomely placed for revenue

By Colin Taylor

These buildings have strong sites in Grey Lynn.
These buildings have strong sites in Grey Lynn.

Investment gold: two buildings in two suburbs with steady income streams at their doors.

Two Auckland properties in a price range that will appeal to smaller investors, offering a combination of retail and residential tenancies, will go under the hammer on August 1 in Bayleys' latest Total Property portfolio auction.

James Chan, of Bayleys Auckland office, says the stand-alone properties in Grey Lynn and Point Chevalier will be auctioned separately and are each producing annual rental income of close to $60,000 putting them within the price range of smaller to medium-size commercial property investors.

Chan says they will also appeal to residential investors looking for diversification opportunities because of their mixed-use nature and strong residential locations.

The Grey Lynn property, at 96-98 Richmond Rd, is returning rental income of $56,730 per annum from a retail tenancy with a strong profile on busy Richmond Rd and from two residential tenancies at the rear. It comprises a 148sq m partially converted, single-level villa on a 253sq m site with a Residential 6A zoning.

Bayleys Auckland's Nicolas Ching, who is marketing the property with Chan, says it has been owned by the current vendor for 12 years and offers investors a spread of risk across a mixed-use tenancy.

Ching says the character building was originally constructed in the early 1900s, with changes and additions over the years.

The retail tenancy of just over 50sq m straddles the full width of the front of the building with extensive street front glazing.

It is occupied by Romantique, a boutique retailer specialising in French antiques, vintage and reproduction furniture, homeware and collectables from India, Egypt, USA, UK and Indonesia, plus jewellery and other products from local suppliers (www.romantique.co.nz).

Early last year the shop exercised the first of two two-year rights of renewal on its lease which is currently producing annual rent of $28,500.

The balance of the rental income is from tenancies on two self-contained one-bedroom flats, one of around 57sq m and the other 37sq m. Both have bathrooms, kitchens and separate entrances, accessed from either side of the building.

Ching says the property has been well maintained and there is an opportunity to add value and potential for long-term growth given its strong location.

"The building is in a high profile position on the main arterial of Richmond Rd and benefits from a large surrounding upmarket residential catchment and its proximity to the popular Ponsonby shopping precinct.

This property is next door to a Trelise Cooper fashion clothing outlet store and there are a number of other similar character shops along Richmond Rd which rarely appear to have any vacancy."

Also up for auction on August 1 is another character building at 1196 Great North Rd in the heart of the Point Chevalier shopping precinct which is on the market for the first time in nearly 60 years.

Marketed by Chan and Quinn Ngo of Bayleys Auckland, the stand-alone two-storey building comprises two ground-level retail outlets and a four-bedroom dwelling.

The property's three tenants are producing rental income of close to $62,500 per annum. The anchor tenant is LabTests. It has an eight-year lease from September 2009, with a 10-year right of renewal.

Ngo says the other retail tenant is the popular Dolce Vita cafe and the refurbished residential premises provide a good standard of spacious, modern living accommodation.

He says the building is prominently positioned on a site of approximately 500sq m with five car parks at the rear.

"This location is considered to be one of the best spots in Pt Chevalier and is directly opposite a McDonalds restaurant and also adjacent to a newly built KFC."

Other nearby retailers include Countdown, a pharmacy and medical centre. The property is a short distance from the SH16 motorway off-ramp and the intersection with Carrington Rd.

- NZ Herald

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