Multi-tenanted properties are for auction within this building at 1976-78 Great North Rd, Avondale. Photo / Supplied
Multi-tenanted properties are for auction within this building at 1976-78 Great North Rd, Avondale. Photo / Supplied
Neighbouring Auckland multi-tenanted properties are for sale within the same building on Avondale's popular Main Street.
The freehold properties - to be auctioned on May 25 unless sold earlier by negotiation - are at 1976 and 1978 Great North Rd and are being sold by Barfoot & Thompson Commercial agentsReese Barragar and Colin Stewart.
Barragar says 1976 Great North Rd is a multi-tenanted, being a mixture of two retail shops plus a potential residential flat or office.
At present two retail shops and an unconsented residential tenancy to the rear earn total annual gross rental of about $75,400, from a floor area of about 227.4sq m, he says. The declared reserve is $895,000, providing a gross yield of 8.4 per cent.
The second property at 1978 Great North Rd has a declared reserve $695,000, which would provide a yield of 7.15 per cent, says Barragar.
This is leased to a retail tenant, operating a post and stationary shop which generates rent of $49,735.84 net per annum, from a floor area of about 139.9sq m.
The lease, which is subject to two-yearly market reviews, has a final expiry of May 1, 2027.
"These properties are close to the neighbouring suburbs of Waterview, New Lynn, Blockhouse Bay and Mount Albert," Barragar says. "They also have great ease of access to the major motorway systems. This location is about 2.8km drive from the Great North Rd entry/exit to the north-western motorway (SH16) and about 10.2km drive from the Auckland CBD.
"In recent years Avondale has grown in popularity with many businesses and residents due to its character, vibrancy and a wide range of high quality amenities and services. This area will also be positively impacted by the significant infrastructure projects now underway - specifically new motorway access which will dramatically improve access."
Regarding potential for future development, Barragar points out the properties are zoned Business-Town Centre under the Auckland Unitary Plan.
"There's a height limit of 32.5 metres, which bodes well for future development. The tightly held retail strip on Avondale's Great North Rd is seen as a strategic investment in a rapidly growing City Fringe location.
"The Vendor is realistic and has signed off both reserves for the two properties."
Barragar says the retail shopping precinct on Great North Road is being positively impacted by intensive residential development around the Avondale Racecourse.
"Astute investors see this as a proactive investment location that has significant rental upside and consistent tenant demand."
