A mixed-use character property in Parnell offers a split-risk investment in a tightly-held city fringe location.
The 1117sq m retail and office property at 157-171 Parnell Rd is being marketed for sale by David Burley of Colliers International Parnell, with colleagues Peter Herdson and Paul Dyson.
Burley notes that it would be hard to find a more appealing location.
"Parnell is one of the most well-established suburbs in Auckland, offering a special village atmosphere right on the doorstep of Auckland's CBD," he says.
Anchored by Italian eatery La Porchetta and international travel agency House of Travel, the property comprises two early 20th Century character buildings, on an 860sq m site spanning two freehold titles.
• 157-165 Parnell Rd comprises a three-level building of mainly brick, concrete and plaster construction with a floor area of about 1220sq m plus veranda.
• 167-171 Parnell Rd comprises a roughly 100-year-old timber and weatherboard building of about 394sq m that has been altered and refurbished over time.
Offers by way of deadline private treaty will close April 4, unless sold earlier.
"This suburb's appealing mix of residential, retail and commercial premises have made it a sought-after location to live, work, shop, drink and dine," Burley says.
"City fringe locations like Parnell have also benefited greatly from low office and retail vacancy rates in the CBD. As a result, Parnell has undergone somewhat of a commercial renaissance, with several trendy new retailers and restaurants opening up shop in the area.
"Interest in Parnell is also being driven by the newly opened Parnell Train Station, which has been a game changer for the area's residents and employees."
Herdson says the property has four retail tenancies on the ground floor, two first floor office tenancies and 16 off-street car parks.
"This tidy split-risk investment is currently 95 per cent leased with a 12-month vendor underwrite on the vacant retail tenancy, making it an excellent add-value opportunity.
"Developers will also appreciate the Business Local Centre zoning, which allows for development of up to 13m in height.
"Substantial city fringe landholdings are scarce, making this a rare opportunity to invest in a large rectangular-shaped, gently sloping site in a well-established Parnell Rd location," Herdson says.
The property is close to Northern, Southern and Northwestern motorway junctions; with the recently opened Parnell Train Station, Link buses, walkways and bike paths also nearby.
"Parnell is set to benefit from the Waitemata Local Board's planned investment in public amenity upgrades in the area. The board has been working with the community and the Parnell Business Association to develop a Parnell Precinct Plan, which will go out for consultation this year. It is also planning to fund upgrades to lower St Georges Bay Rd and improved linkages to the Parnell Train Station and Auckland Domain," says Herdson.
The anchor tenants have long trading histories in Parnell, adds Dyson.
House of Travel is one of Australasia's leading travel companies; La Porchetta is an institution of the Parnell dining scene, while other tenants include quantity surveyors Project Economics and Bentleys Drycleaners. There are two billboard leases.
"All this currently adds up to a net market income of $582,309 per annum."