The Sandringham Rd property went for $1,210,000.
Strong competition for a variety of properties on sale in a Bayleys Total Property commercial and industrial auction in Auckland resulted in all the tenanted offerings selling at yields of less than 7 per cent.
Fourteen properties were sold, including six units in a recently developed Albany retail convenience centre called The Foundation.
Three smaller units in The Foundation occupied by Bruce Lee Sushi, Pita Pit and the Tank Juice Bar sold at yields of 5.35 per cent to 5.6 per cent and two larger offerings occupied by Oporto Chicken and Whisky to Wine sold at 6.5 per cent and 6.6 per cent yields. Three further properties sold post-auction.
The units, which all had new long-term leases, were marketed by James Chan, Quinn Ngo and Matt Lee of Bayleys Auckland in conjunction with Rosemary Wakeman of Bayleys North Shore Commercial. A vacant unit was also sold.
The 23-unit The Foundation has a mix of restaurants, smaller convenience shops and service retailers. It is on a large site at 270 Oteha Valley Rd, Albany, owned by Todd Property Group, one of New Zealand's biggest property companies, which has undertaken the development in conjunction with Cappella Property.
Strong interest in The Foundation has resulted in all but two of the available units having committed occupants before the project's completion this month.
Fourteen units were sold before the auction, mostly through Bayleys Real Estate.
Chan, who managed the marketing and sale of the units, said they attracted spirited bidding from investors in the auction room and on the telephone. The units that sold were:
• Unit 8: A 58sq m Bruce Lee Sushi outlet on a nine-year lease, with annual rent reviews tied to the Consumer Price Index plus 1 per cent, sold for $580,000 at a 5.35 per cent yield.
• Unit 10: A 58sq m Pita Pit outlet on a 10-year lease with annual rent reviews to CPI plus 1 per cent sold for $575,000 at a 5.4 per cent yield.
• Unit 12: A 56sq m unit occupied by the Tank Juice Bar sold for $580,000 at a 5.6 per cent yield with a 10-year lease with annual rent reviews of 3 per cent.
• Unit 13: A vacant 56sq m unit next to the Tank Juice Bar sold for $480,000.
• Unit 14: A 107sq m Oporto Chicken outlet on a 10-year lease with annual rent reviews to CPI plus 1 per cent sold for $930,000 at a 6.6 per cent yield.
• Unit 20: A 192sq m unit occupied by Whisky to Wine - a new liquor retail brand which is part of the national Super Liquor group - with a new eight-year lease sold for $1 million at a 6.5 per cent yield.
Other larger retail properties also attracted a substantial number of bids and sold at low yields.
The highest sale price of the day was $2,875,000 for a 589sq m fully leased retail and office building at 78 Coates Ave in Orakei that was marketed by Robert Platt and Kate Kirkby of Bayleys Auckland.
The two-level building is on an under-utilised 1108sq m site with views towards the harbour and Rangitoto Island.
Four telephone bidders and several bidders in the auction room contested for the property.
Bidding starting at $2 million, and after a series of mostly $100,000 increases the property was declared "on the market" by auctioneer Richard Valintine at $2.75 million.
A further 20 smaller bids added another $100,000 to the price and it sold at a 5.1 per cent yield on its net annual rental income of $146,232 plus GST from 10 tenancies.
Chan, in conjunction with Cameron Melhuish, was involved in the sale of another retail property at 301-305 Kepa Rd, Kohimarama, for $2,720,000 for a 6.2 per cent yield. Declared on the market at $2.6 million, it is a 473sq m building containing four shops, a dental practice, a warehouse and offices on a 801sq m site. The sale also included a half share in an 809sq m leasehold site used for car parking at 293 Kepa Rd.
The day's lowest yield, 3.3 per cent, was achieved on a 357sq m site with redevelopment potential at 581 Sandringham Rd, sold by Mark Birdling and Kelly Morris of Bayleys' Sandringham office for $1,210,000.
It houses a 260sq m service station at which a vehicle service and repair business has operated for 40 years. It is producing holding income from a monthly lease of $40,000 a year net plus GST.
Birdling said the new owner had indicated he intends to redevelop the property, which is in the heart of Sandringham Village.
It has a Local Centre zoning under the proposed Auckland Unitary Plan which permits buildings up to four storeys high, incorporating residential on the upper floors.
Valintine said there was also good bidding on a range of industrial offerings which sold at yields of less than 6.5 per cent.
Two neighbouring industrial properties in Newark Place, East Tamaki, sold at yields of 5.5 per cent through John Bolton, Roy Rudolph and Katie Wu.
An 848sq m clear span warehouse on a 1524sq m fully fenced corner site at 2 Newark Place fetched $1,090,000, and a 715sq m warehouse and office building, with two tenants, on a 1012sq m site at 6 Newark Place sold for $822,000.
Other sales included:
• A 553sq m two-level warehouse and office building on a 647sq m mixed-use zoned site at 11 Tawari St, Mt Eden, sold for $1,610,000 at a 6.35 per cent yield through Melhuish and Alan Haydock of Bayleys Auckland. It is leased until June 2020 with annual 3 per cent rental increases.
• A 192sq m industrial unit at 22 Saunders Place, Avondale, with a high-stud, clear-span warehouse with a mezzanine and offices on two levels, plus good yard area, sold vacant for $415,000 through James Hill and Greg Hall of Bayleys Auckland.
• A 278sq m industrial unit leased until May 3 next year at 17C Joval Place, Wiri, with 6m stud warehouse and four offices, a reception area and lunchroom sold for $400,000 at a 6.4 per cent yield through Peter Migounoff and Piyush Kumar of Bayleys Counties.