One of the largest privately-owned landholdings on Auckland's Ponsonby Rd is for sale only metres from the landmark Three Lamps Village, with its 25 separate income streams generating total passing annual income of about $1.25 million.
"The property is being offered to the market for the first time," says Kris Ongley of Colliers International who, with colleagues Charlie Oscroft and Gareth Fraser, has been exclusively appointed to market 284-292 and 294-306 Ponsonby Rd and 1-3 Cowan St for sale via expressions of interest to be lodged by 4pm on Wednesday June 5 - unless one or all are sold earlier.
The strategic corner property encompasses three freehold titles and three individual buildings, which are for sale individually or as one combined holding,
Ongley says it is rare to have a property of this size come up for sale in Ponsonby Rd. "After many years of family ownership, it comes to the market with several viable acquisition options afforded by the title structure and a flexible zoning.
"Investors could purchase any of the three properties individually as a long-term investment and explore add-value or development propositions for each one.
"Alternatively, purchasing any two of the properties could increase ownership flexibility and development potential. And, acquiring the entire site, would allow the owner to retain all three properties as a significant and influential investment holding.
"This latter option would provide an opportunity to consider wider staged development options or allow the option to retain part of the site while divesting other titles."
Oscroft says the properties are superbly located in one of Auckland's most sought-after and affluent precincts.
He says Ponsonby has long been a hub for fashion outlets, trendy cafes, restaurants and bars. However, while Ponsonby Rd has been dominated by retail, hospitality and entertainment businesses, a more recent trend in metropolitan office development has driven commercial activity to a new level.
"The road runs 1.7km along the Ponsonby ridgeline, with properties towards the Three Lamps end having expansive views over residential suburbs, the central city and harbour."
Fraser says properties in Ponsonby are tightly held – particularly assets of this magnitude, of which very few are transacted.
"The property is well located on the city fringe near the suburbs of Herne Bay, Freemans Bay, Grey Lynn and College Hill.
"It's within easy walking distance of the Auckland CBD, Viaduct Harbour, Victoria Park, Herne Bay's beaches and a New World supermarket on College Hill.
"Ponsonby is well served by public transport, with regular City Link bus services and it has easy access to Auckland's motorways."
The three properties are:
1-3 Cowan Street - a two-level commercial building known as The Pompallier Centre. Constructed in the 1980s, the fully leased building has an A-grade seismic rating and 1091sq m of medium-to-high-grade office and retail accommodation.
Eleven leases – including offices, service retailers, a cafe, a DX mailbox and 13 car parks – earn $378,289 plus GST in net annual rent. The car parks are on the northern edge of the title and are accessed by a right of way over an adjoining council-owned car park, which fronts Pompallier Terrace.
The property occupies a 1214sq m freehold site that has a Business Town Centre zoning. It is located directly to the rear of 284-292 Ponsonby Rd and has about 45m of street frontage to Cowan St.
286-292 Ponsonby Rd – adjoins the Cowan St property and comprises a two-level 1920s' character building with heritage architectural features typical of that era. It occupies a 731sq m landholding with eight rear car parks and has a corner profile to Ponsonby Rd and Cowan St.
Four tenancies plus a billboard lease earn $367,114 plus GST in net annual rent.
The 764sq m building comprises four ground floor retail tenancies, all with Ponsonby Rd frontages, and four associated first floor areas which are included in the retail leases.
The billboard is on the first floor, facing north towards traffic travelling along Ponsonby Rd from Three Lamps.
The property's Business Town Centre zoning includes Special Character and Historic Heritage overlays.
296-306 Ponsonby Rd – is the northernmost title on a 1135sq m site with Business Town Centre zoning and a corner profile to Pompallier Tce.
It has a single-level commercial building of 666sq m that is predominately tenanted by retail and hospitality operators, plus 16 car parks.
Leases on seven of the eight retail tenancies, the car parks, and signage generate $506,616 plus GST in net annual income.
Ongley says the comparatively under-developed sites, flexible zoning, large size and northern corner position give the property significant future development potential.
"The tenancy schedule for the property gives a substantial holding income while development options are explored in detail," he says.
"As an add-value investment, long-term hold, or site for future redevelopment, it ticks all the boxes."