This building at 60-62 Mokoia Rd, Birkenhead, occupied by a stationery shop and a laundromat at street level, sold for $2.3m. Photo / Supplied
This building at 60-62 Mokoia Rd, Birkenhead, occupied by a stationery shop and a laundromat at street level, sold for $2.3m. Photo / Supplied
Properties offering future development or add-value opportunities generated strong competition at Bayleys' latest Total Property auction in Auckland.
Low yields also continue to be a feature of the market with seven out of nine tenanted properties selling at capitalisation rates of less than five per cent.
Attracting some of the strongest bidding were two adjoining properties in Lake Rd, Takapuna, which sold to separate purchasers at a total value of $7.65m.
A 321sq m two-level building on an 888sq m site at 398 Lake Rd sold for $4.04m at a 4.08 per cent yield through Ranjan Unka, Tonia Robertson and Ashton Geissler of Bayleys North Shore Commercial. The Skin Institute has occupied the premises since 1994 and recently renewed its lease until September 2023, with three further three-year rights of renewal.
The neighouring property at 400 Lake Rd, Takapuna, encompassing a 272sq m split-level character residential building converted for commercial use on an 890sq m site, sold for $3.61m at a 2.65 per cent yield through Robertson, Unka and Bayleys North Shore colleague Terry Kim. It is fully leased to well established law firm Turner Hopkins with 5.5 years to run on its lease term.
Unka says both properties have flexible Mixed Use zonings under the Unitary Plan which enhances their future development appeal.
"The property at 398 Lake Rd has the potential to add residential accommodation with sea views on top of its commercial base, while the next-door property has longer term potential for multi-level redevelopment."
Another Takapuna property described as having future development and rental growth upside, also sold at a sub 5 per cent yield. At 58-60 Jutland Rd, it has a 398sq m two-level building with a mixture of commercial and residential tenancies on a 371sq m site zoned Neighbourhood Centre which provides potential to increase the lettable area by taking advantage of the 13m height limit.
With three ground floor retail units, anchored by a superette, and two flats above, it sold for $2.09m at a 4.79 per cent yield through Adam Curtis, Damian Stephen and Nick Howe-Smith of Bayleys North Shore Commercial.
Leased to Pine Harbour Motorsport Museum, this 40 Ninth View Ave, Beachlands, showroom building, sold for $1.65m. Photo / Supplied
Also selling on the Shore for $2.3m at a 5.65 per cent yield, was a fully leased 744sq m building on 405sq m site at 60-62 Mokoia Rd, Birkenhead. Occupied by a stationery shop and a laundromat at street level and a kickboxing gym in basement area, it was sold shortly after auction by Michael Nees and Nick Howe-Smith, Bayleys North Shore Commercial.
Nees says the site's Town Centre zoning allowing buildings up to 21m offers potential to make the most of the property's sought after ridgeline location which provides panoramic views of the CBD and harbour.
Two properties zoned Terrace Housing & Apartment Building, the most intensive residential development zone under the Auckland Unitary Plan, also sold under the hammer at the Total Property auction.
A 538sq m site at 360 Onehunga Mall, Onehunga with a 341sq m building constructed in 2010 including a ground floor liquor store and four-bedroom residential accommodation above sold for $1.96m at a 4.78 per cent yield through Ken Lu, Damien Bullick and Alan Haydock, Bayleys Auckland.
A 1416sq m site at 40 Ninth View Ave, Beachlands, opposite the entranceway to Pine Harbour marina, with a modern 640sq m single-level showroom building, sold for $1.65m through Nick Bayley, Dave Stanley, Bayleys Auckland. It is leased to the Pine Harbour Motorsport Museum and is producing net annual holding income of $36,443.
A high-stud warehouse and office building at 25 Walls Rd, Penrose sold for $2,305,000. Photo / Supplied
Other properties to sell at the Auckland auction included:
• A 702sq m high stud warehouse and office building on a 1037sq m Light Industry zoned site at 25 Walls Rd, Penrose, sold for $2,305,000 at a 4.61 per cent yield through Mike Adams and Phil Haydock of Bayleys Auckland. There is a new six-year lease to a well-established import and distribution tenant. • Two adjoining clearspan warehouse and office units totaling 1012 sq m on a 2100sq m site at 46 Neilpark Drive, East Tamaki sold for $2.65m through Katie Wu, John Bolton and Roy Rudolph of Bayleys South Auckland. A short-term leaseback of both units to the vendor will provide holding income of $110,000pa net. • A 30 sq m single-level medical clinic on a 998sq m site at 766 Great South Rd, Penrose, sold for $1,650,000 at a 6.11 per cent yield through Tony Chaudhary and Janak Darji of Bayleys South Auckland; and James Hill and James Chan of Bayleys Auckland. Tenants include a GP, physiotherapist, occupational therapist and accountant. • Two units totalling 280sq m in a retail complex off Lincoln Rd at 42 Paramount Drive, Henderson, sold with vacant possession for $1,408,000 through David Han and Terry Kim of Bayleys North Shore Commercial; and Matt Lee of Bayleys Auckland. The premises are consented for restaurant use.
