Long-held Ponsonby Rd shops on the block

The trio of shops at the College Hill end of Ponsonby Rd have been almost continuously tenanted over their last 45 years of ownership.

A block of three shops at the College Hill end of Ponsonby Rd will go under the hammer next month after being in its current ownership for close to half a century.

The single-level 170sq m building, on a 366sq m freehold site with future development potential at 293-297 Ponsonby Rd, is being marketed by Sunil Bhana and Cameron Melhuish of Bayleys Auckland office and will go up for auction on Wednesday, October 22, as part of Bayleys latest Total Property commercial and industrial property portfolio.

www.bayleys.co.nz /4109904

"The long-standing owners have advised us that during the more than 45 years they have held the property, there have been very few occasions in which it has not been fully occupied and it has produced consistent rental growth for them," says Bhana.

The property is producing net annual rental income of $150,253, with two tenants on final renewals of leases that began in 1997 and 2002.

"Originally built around 1913, the building has undergone various renovations and additions over the years and today provides three single-level retail tenancies with excellent profile to busy Ponsonby Rd," Bhana says.

A 66sq m shop at 293 Ponsonby Rd is occupied by Price Wise which sells beauty and body products. A Sierra Cafe is in the middle 56sq m shop at 295 Ponsonby Rd, with a rear courtyard, and a Harvey World travel agency occupies 48sq m of space at 297 Ponsonby Rd.

Each of the shops features full-height glazing to the Ponsonby Rd frontage - an addition completed in the 1980s - together with the canopy that extends over the footpath.

Melhuish says the shops have an elegant high-stud element, typical of the era in which the property was built and various fit-outs are in place across the three tenancies. "To the rear of 293 and 295 Ponsonby Rd are attractive north-facing and landscaped courtyard areas and offices and storage have been built at the rear of 297 Ponsonby Rd.

"This is a trophy investment property which has a high-profile position on busy Ponsonby Rd near its intersection with Jervois Rd, St Mary's Rd and College Hill. It is in the popular Three Lamps precinct, which is a well established retail and commercial area comprising cafes, restaurants, bars, fashion and gift shops, banks and other service providers.

"It's a sought-after location for tenants who want to be at the heart of the action in Ponsonby's retail centre servicing a number of established and affluent surrounding residential wards, including Ponsonby, Freemans Bay, Herne Bay and Grey Lynn."

Bhana says the under-developed freehold site also has future added value potential. "There are a number of two-level buildings close by and the land at the rear of the property could be developed further. A new owner could benefit from the cash flow while exploring possible future options the site might provide to build up and out," he said.

The property is zoned Business 2 and has a Town Centre zoning under the Proposed Auckland Unitary Plan.

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