The building at 5-7 Galatos St is leased to Eat My Lunch. Photo / Supplied
An upper Auckland CBD investment property close to the future Karangahape rail station is for sale with a long-term lease to successful social enterprise Eat My Lunch.
Colliers International brokers Shoneet Chand and Jonathan Lynch are marketing 5-7 Galatos St, for sale by auction. Featured in the latest Colliers Portfolio it will go under the hammer at 11am on October 24, unless sold earlier.
Chand says it's a quality freehold investment with strong tenant covenant and abundant future potential.
"A short walk from K Rd, the property will benefit from completion of the City Rail Link, which will encourage further change of use in the area. It has a light-filled, 660sq m showroom and warehouse on an unencumbered, 706sq m future development site," he says.
"The long-term tenant Eat My Lunch Limited is an established, well-known social enterprise that is part-owned by a subsidiary of supermarket giant Foodstuffs."
The company is signed to an eight-year lease earning $189,150 plus GST in net annual rent, with two-yearly market rent reviews from August 2018. Two rights of renewal of four years each extend the total lease term to July 31, 2032."
Chand says the present lease expires in 2024, when the City Rail Link is due for completion.
"The timing couldn't be better for conversion or redevelopment to residential use. The property is zoned City Centre under the Auckland Unitary Plan, which allows for a wide range of activities and the greatest intensity of development in Auckland. Permitted uses include dwellings, visitor accommodation, entertainment facilities, offices, commercial services, conference facilities, retail, education and public amenities."
The property is on a level, regular-shaped site with 36m of north-facing frontage to Galatos St. A 3.5m setback from the footpath provides space for eight off-street car parks.
Built in about 1966, the 712.9sq m building comprises two levels of office space at the front and a medium to high-stud warehouse area at the rear.
Lynch says the warehouse has been refurbished to the modern, food-grade standards required by Eat My Lunch.
"The attractive and expansive warehouse kitchen area has large, south-facing windows that extend to the top of the ceiling, which rises from a 4m stud at the knee to 8m at the apex. This extensive glazing provides particularly good internal light throughout the day, without the glare of direct sunlight. Attractive modern lighting and lacquer-finished concrete flooring complete the 'industrial chic' look."
A full-height motorised roller door to the northwestern corner of the warehouse gives unimpeded goods and service access. The offices and ground floor amenities are all finished to a high standard.
Lynch says Galatos St is a short cul-de-sac off East St, running between K Rd to the north and Canada St to the south. Canada St gives access to Upper Queen St to the east and Nelson St to the west, the latter via a bright pink Lightpath pedestrian and cycle bridge.
Lynch says Galatos St is a mixed-use pocket of city fringe development, typified by older low-rise warehouses that have been converted to showroom, office and entertainment uses.
The wider area is one of Auckland's most vibrant commercial and retail districts.
"K Rd is a hive of activity and is close to Ponsonby Rd and Grey Lynn, both of which have a good mix of cafes, restaurants and bars."
Chand says tenant Eat My Lunch was founded with the goal of ensuring no child at school goes hungry.
"The company is a 'one-for-one' social enterprise that funds its community initiatives by selling healthy lunches to office workers.