An investment property for sale in Auckland's fast changing suburb of Grey Lynn is generating over $200,000 in annual rent and has three street frontages close to the high-profile Vinegar Lane and Cider Building developments.
"This is a superbly positioned, two-level property with a basement," says Cam Paterson of Barfoot & Thompson Commercial who, with colleague Shaydon Young, is marketing 46-48 Pollen St for sale by tenders closing at 2pm on April 12.
"Constructed in the 1970s and having undergone subsequent alterations, the property occupies the corner of Williamson Avenue, Rose Rd and Pollen St giving the tenant excellent high-visibility street frontages to Williamson Ave," Paterson says.
"The L-shaped parcel includes 15.7m to Williamson Avenue, 25.3m to Pollen St and 28m to Rose Rd totalling 69 metres." He says the site is held in two freehold titles with a combined area of 627sq m and a total building floor area of 554sq m along with 13 car parks.
Zoned Business Town Centre, the property generates $205,774 net income per annum from leasing the building and car park to National Veterinary Care Operations NZ Pty Limited [NVC] and aerial space to Vodafone.
NVC has a three-year lease commencing August 15 last year with five rights of renewal paying $150,840 per annum for the building area and $43,160 for the car parks. Both leases have annual Consumer Price Index (CPI) reviews commencing 2019 to market on renewals.
Vodafone pays $11,774 a year for an aerial on the property with a 20-year lease starting on January 19, 2004. It has had three-yearly CPI reviews from commencement, with the next due January 19, 2019.
Overall building construction is of concrete and steel with aluminium joinery and reinforced concrete foundations.
Paterson says the building at 48 Pollen St comprises three areas with the front Pollen St ground floor portion consisting of the showroom and office space encompassing a reception area at the entry with separate offices and bathroom facilities located to the rear.
This showroom area totals 134.46sq m and has a high stud, with good natural light and polished concrete floors.
To the rear of the showroom, and half level up, is 180.96sq m of basic office space currently used by the veterinary company as "a treatment area".
The upper level contains separate offices, other bathroom facilities inclusive of a shower and a kitchenette, totalling 238.78sq m which are accessed via stairs to the rear of the showroom space. The total internal area is 554.2sq m.
The basement houses five covered car parks with access directly from Rose Rd via a secured roller door.
Next door the property at 46 Pollen Street consists of seven uncovered car parks accessed from Williamson Ave, plus one further stacked car park and direct access to the upper levels of the building.
Young says development in the Grey Lynn area has gained momentum with the Auckland Unitary Plan providing for greater density. "We are aware of properties to the west of Rose Rd that have recently been bought by a developer who is considering developing apartments on them."
He says the Business Town Centre zoning with a height control of 13m provides for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services.
"The objective of the zoning is to develop a strong network of centres throughout Auckland that are attractive environments and which draw ongoing investment; promote commercial activity; and provide employment, housing, goods and services at a variety of scales."