A building in Mt Eden's Dominion Rd, now leased to a karaoke and hospitality business, reflects the changing face of the area.
The 500sq m premises comprising two inter-connected buildings, on 539sq m of land at 654-656 Dominion Rd, is being offered for sale with a new four-year lease toBase KTV Entertainment Ltd. It is producing net annual rental income of $96,000 plus GST.
Featured in Bayleys' Total Property portfolio, it is being marketed by Damien Bullick and Phil Haydock, Bayleys Auckland and is for sale by tender - closing on Tuesday, April 12 - unless sold prior by negotiation.
"This is an excellent freehold investment opportunity in a popular commercial and residential location," says Bullick. "It is centrally positioned in the bustling Balmoral retail strip, just south of Balmoral Rd, and benefits from a high-profile frontage to Dominion Rd as well as off-street parking for five cars at the rear, which can be accessed off Rocklands Ave."
The property is made up of two parts: the original single-level retail frontage on to Dominion Rd, believed to have been constructed in the 1950s, and a more modern two-level adjoining building which was built on the rear of the property in 1993.
This adjoining building was designed by award winning Auckland architect Pip Cheshire and built by Haydn & Rollett Construction.
In the mid 2000s the building was converted into a hospitality complex aimed at the local Chinese community with a pool hall, bar and restaurant at ground level, with karaoke rooms in the mezzanine level upstairs.
"This adaptation fitted in with the changing face of Dominion Rd which has become Auckland's defacto "China Town", and is now a thriving and eclectic mix of ethnic restaurants, entertainment venues and retail shops," says Bullick.
"The current occupant has shown a strong commitment to the property by investing a substantial amount on the refurbishment of the building's interior to create an impressive, modern tenancy with upgraded kitchen and bathrooms facilities, additional mezzanine floor area and air-conditioning throughout."
An elevated view depicting the setting of the Dominion Rd property - identified by a red border.
Haydock says the property's favourable zoning provides add-value potential. The Business 2 zoning and the Proposed Auckland Unitary Plan zoning of Business Local Centre both permit buildings of up to 12.5 metres (three levels). The proposed Local Centre zoning allows for commercial uses on the lower levels with residential above.
"An increasing number of properties along Dominion and Mt Eden Roads now contain a mix of business and residential tenancies and there could be potential to further develop the site further down the track given its high profile city fringe location which offers handy access to public transport and is a short distance from Mt Eden Village and Auckland's CBD. A thriving residential market in Balmoral /Mt Eden also adds to the long term desirability of this property."
Phil Haydock, of Bayleys Auckland.
Haydock says there is likely to be further significant development and rejuvenation in the surrounding area following the granting of a resource consent last year for The Warehouse to develop a 1.2ha site near the intersection of Balmoral Rd and Dominion Rd, also bordered by Rocklands Ave.
