Add-value options for Shore plot

A multi-tenanted investment property with add-value potential on a busy North Shore feeder road is up for sale as part of Bayleys' latest Total Property portfolio.

The site comprises a 1208sq m freehold site which backs on to a bush reserve at 50 Lake Rd, Northcote, along with two adjoining buildings totalling 751sq m.

The property is being marketed by Dean Gilbert-Smith and Simon Aldridge of Bayleys North Shore Commercial as part of Bayleys' latest Total Property commercial and industrial auction and will go under the hammer on December 3 unless it sells earlier by negotiation.

Gilbert-Smith says the property is producing net annual rental income of $72,857 across three tenancies but this could be increased to over $100,000 a year by leasing out 187sq m of upper-level office space that is currently vacant.

"With the vendor wishing to pursue other interests, there is a real opportunity here to enter the commercial property investment market with this well-located property or to add it to an existing portfolio," says Gilbert-Smith. "Alternatively an owner-occupier could move into the vacant office space and use the rental income from the other tenancies to help pay any mortgage on the property."

The larger of the two buildings is a three-level structure containing a mix of warehouse, showroom and office space with dual roller door access at the front and rear.

The vacant office space is located on the top floor of this building and has its own access via a flight of stairs. A separate two-level building was added to the side of the main building and comprises a mix of retail and warehouse space.

Chefshop has occupied part of the main building since 2001 and renewed its lease for a further four years in mid 2013. It has been providing chef uniforms, footwear and knives to the catering and hospitality industry for more than 30 years and also has a knife-sharpening service on the premises.

The Slideshop also has warehouse and showroom space in this building. It produces sliding doors, wardrobes and glass products and has a three-year lease from March 2014 with one three-year right of renewal.

The adjoining building, which has its own entranceway, is occupied by Kidz Stuff which has a small shop and uses the balance as storage and distribution space for its online business, which sells a range of children's toys. It has a four-year lease from October 2013, with a four-year right of renewal.

Gilbert-Smith says the property provides good drive-around access and excellent off-street parking for up to 18 vehicles at the front and rear of the buildings.

"It is zoned Business 9, which allows for a range of employment-generating activities, as evidenced by the diverse range of businesses that occupy the premises at present."

The property is located in a well-established commercial and industrial precinct which includes major corporate occupiers such as Navman, Smith and Davies and Sealy Beds. Other tenants in the vicinity include Go Fish Fishing Tackle, Galaxy Music School, Cafe Artos and Filter Corporation International.

The property adjoins the Kauri Glen Reserve on its northern and western boundaries, one of the oldest reserves on the North Shore.

It encompasses about 10ha of land and has a labyrinth of walking tracks though native bush, one of which is next to the property.

Gilbert-Smith says Lake Rd is an important secondary arterial route linking Northcote and other suburbs with Onewa Rd and beyond to the northern sector of the SH1 motorway and the Auckland Harbour Bridge.

"The property at 50 Lake Rd is centrally located with excellent visibility to high volumes of passing traffic. Both Auckland CBD and central Takapuna are only a 10- to 15-minute drive away in non peak-hour traffic."