More than $100,000 of further bids followed, with two investors fighting it out at the end in $1000 increments before the property was eventually sold at a 5.05 per cent yield.
It was marketed by James Chan and Quinn Ngo of Bayleys Auckland in conjunction with Tony Chaudhary of Bayleys Manukau.
The premises were sold with an eight-year lease from February 2012 to Future Feet, which has been based there since 1993. the present net annual rental is $75,000 with annual rental increases of 3 per cent. Chan says the units' location in a prime corner position at the intersection of Ponsonby Rd, College Hill Rd, St Marys Rd and Jervois Rd was a major factor in the strong interest in the property
The Future Feet shop is part of a three-level commercial area that includes a basement car park, ground-level retail and first-floor offices.
Another retail unit, occupied by the Dorothy Butler Children's Bookshop in the same area but further along Jervois Rd sold at a Bayleys' auction earlier this year for $1,080,000 at a 6.6 per cent yield.
The highest price achieved at the latest Bayleys' Total Property auction was $3,750,000 for a 4730sq m car yard site at 579 Great South Rd, Manukau, with 1326sq m of showroom and service buildings, sold by Shane Snijder of Bayleys Counties and John Bolton and Tony Chaudhary of Bayleys Manukau.
It attracted strong interest and was declared on the market at $3.6 million before eventually selling at a 7.2 per cent yield. The property has a 10-year lease from April 2012 to Manukau Toyota Commercial.
The property which had the lowest sale price of the day, a vacant 275sq m two-level building on a 151sq m site in the Glen Innes town centre mall attracted the most competition of all the offerings. Bidding on the former furniture and appliance store at 25-27 Mayfair Place, Glenn Innes, marketed by Tony Chaudhary of Bayleys Manukau and Nicolas Ching of Bayleys Auckland, started at $270,000 and the property was announced on the market at $316,000. A long series of mostly $1000 bid increases followed before it sold for $422,000.
Also selling under the hammer were two units in the Lincoln North Shopping Centre at 192 Universal Drive, Henderson.
A 179sq m ground floor unit occupied by Moda Kitchen sold for $810,000 at an 8.8 per cent yield through James Chan and Cameron Melhuish of Bayleys Auckland. Moda Kitchen, which specialises in the design, manufacture and installation of kitchens, has a six-year lease until August 2016, with one six-year right of renewal.
Chan and Melhuish also joined forces in the sale for $930,000 of a 472sq m upper-level unit in the same centre, which international fitness franchise Snap Fitness has recently moved into following a major refurbishment and fit-out. The property sold at a 11.7 per cent yield on a six-year lease to the West Auckland franchisee from April 2012, plus two associated signage leases.
A 326sq m three-level character commercial building, previously used as a bar and function centre, on a 220sq m high site with mixed use zoning at 223 Symonds St sold for $840,000. It was offered, with vacant possession, through Cameron Melhuish and Alan Haydock of Bayleys Auckland. Its annual income of $34,278 is sustained by billboards, popular because of its high profile position between Khyber Pass Rd and Newton Rd. Melhuish says the purchaser intends to refurbish the property and find new tenants.
The other property to sell at the Total Property auction in Bayleys' Auckland auction rooms was a 99sq m unit in the Highland Park shopping centre in Pakuranga, occupied by a Thai restaurant for the past 13 years.
It went for $568,000 at an 8.2 per cent yield on a four-year lease from March 2010 to Taste of Thai.
It was marketed through James Chan and Nicolas Ching of Bayleys Auckland. Also selling as part of the Total Property auction in Bayleys Manukau's auction rooms in East Tamaki was a 922sq m site in Beachlands main retail precinct with a commercial building at the front and residential dwelling at the rear.
It went under the hammer for $1,290,000 at a 6.8 per cent yield. Marketed by Mike Adams, Bayleys Auckland and Dave Stanley, Bayleys Manukau, the property at 38 Wakelin Rd.
The property houses a police station, an NZ Post and Lotto shop and there is a BNZ cashflow machine.
The total net annual rental income is $57,700.
An additional $740 a week comes from two separate residential tenancies.
