The commercial building at 231 Dairy Flat, Albany Village, has 16 retail and office tenancies.
A total of seven North Shore properties will go under the hammer at Bayleys' next Total Property portfolio auction in Auckland on September 21.
Bayleys North Shore Commercial director Nick Howe-Smith says the large number of properties for auction reflects the fact that an increasing number of owners are looking to make the most the current strong commercial property market conditions in Auckland to take some capital gain. The largest property for auction is a two-level, fully-leased 905sq m commercial building in the centre of Albany Village, with 16 retail and office tenancies producing annual rental income of $251,613 plus GST.
Located on an 809sq m freehold site at 231 Dairy Flat Highway, it is being marketed by Dean Gilbert-Smith in conjunction with Alex Strever and Eddie Zhong.
"The property has a great mix of tenancies with businesses occupying the ground floor retail premises including a real estate agency, a Thai restaurant, a delicatessen and cafe, hair salon and NZ Post," says Gilbert-Smith. "The first floor offices are occupied by a range of well-established professional tenancies including an architect, dentist and counselling service. The majority of leases incorporate market rent reviews which provide potential for rental growth.
"The fact that there are no vacancies underlines the strength of the property's location in the heart of the commercial area of Albany Village and in a prominent position on Albany Highway opposite the intersection with Oteha Valley Road extension," says Gilbert-Smith. "It's in one of the highest growth commercial hubs on the North Shore with a Who's Who of developers purchasing land in the rapidly expanding surrounding area."
Zhong says the property has potential for further development under its Local Centre zoning in the Proposed Auckland Unitary Plan (PAUP). The zone applies to a large number of small centres throughout Auckland located in areas of good public transport and provides for the local convenience needs of surrounding residential areas. The zoning allows for buildings up to four storeys high and encourages residential uses on upper floors.
"This is an exceptional opportunity to invest in a thriving precinct which has experienced significant population growth in recent years and has a number of new upmarket residential and commercial developments underway," Zhong says.
Also up for auction with a Local Centre zoning under the PAUP is a 197sq m single level retail building on a 306sq m high profile corner site a 157-159 Lake Rd, Belmont, on the busy main arterial route to and from Devonport.
Marketed by Simon Aldridge and Michael Nees, it is generating net annual rental income of $57,400 from leases to anchor tenant Belmont Liquor Centre and a Thai takeaway and a Spark telecommunications tower.
"The property has not been vacant in more than 20 years, reflecting its high profile position on Lake Rd and has rental upside," says Aldridge. "However, its real value longer term is in the land with its Unitary Plan zoning and the contour of the site providing a mixed use development opportunity.
"Mixed use properties on the North Shore and especially in the Takapuna, Belmont and Devonport precincts are very popular and sought after. This provides a pool of potential tenants for both the retail and residential components," says Aldridge.
"With all final expiry dates on the current leases occurring in the next five years, there is plenty of time for add value investors and developers to formulate their plans for the site and obtain the necessary consents."
Aldridge and Chris White are also marketing what they describe as "the only substantial industrial property in Milford" - a 664sq m building on an 1105sq m site at 29 Shakespeare Rd, Milford.
The property is generating net annual rental income of $90,000 from a new four-year lease to Milford Car Pro which was founded by its present owner in 1982 and is a family run business specialising in collision repairs.
"It's a tidy industrial offering in an area where there is a very limited supply of industrial zoned land so it has considerable scarcity value," says Aldridge.
'Approximately 330sq m of land on the southern part of the site is undeveloped which provides car parking for 23 vehicles but has other future possibilities. It could also be used as a yard, a turning bay or for the further development of the building.'
He says the L-shaped building's five work-bay configuration also provides potential for dividing into smaller work units longer term, thereby increasing the property's income generating potential.
The other North Shore properties up for auction on September 21, unless sold earlier by negotiation, are:
• Unit D3, 27-29 William Pickering Drive, Albany - This well-presented 225sq m road front office unit with six exclusive car parks in a high profile corner position in a well-established business park, is being marketed by Ryan Dannhauser and Gilbert-Smith. A new three-year lease is producing net annual rental income of $62,490 plus GST.
• Units 3 & 4, 49 Porana Rd, Wairau Valley - Two industrial units of 128sq m and 129sq m each with over 80 per cent warehousing, on one title which are being auctioned as one lot. Both units are occupied on short term leases with total net annual rental of $41,600 and they provide options for both investors and owner occupiers, says Ranjan Unka who is marketing the property with Adam Watton.
• Unit C, 75 Corinthian Drive, Albany - Coming on the market for the first time since 2003, this 117sq m ground floor office or retail unit with four exclusive carparks is part of a commercial development adjoining the District Court. Occupied since 2005 by a legal practice, the air conditioned premises comprise four private offices, reception, kitchenette and bathroom with a 43sq m rear courtyard. The unit is for sale with vacant possession through Jane Sims, Tonia Robertson and Howe-Smith.
• 300 Dairy Flat Highway, Albany - A vacant 3192sq m high exposure corner site rezoned to Mixed Housing Suburban under the PAUP.. This allows for a moderate level of residential intensification. It is for sale with vacant possession through Nees and Oscar Kuang and Owen Ding from Bayleys' International Division.
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