Three investment properties, including one housing an ASB bank, in the Three Lamps area will be auctioned separately on March 20.
Three investment properties, including one housing an ASB bank, in the Three Lamps area will be auctioned separately on March 20.
Three tenanted retail properties that have been "fastidiously maintained by the owner for over 20 years" in Ponsonby Road's tightly-held Three Lamps precinct are due to go under the hammer next month.
"The three investment properties all have basement carparking and will be sold separately," says Tim Turner of NAIHarcourts, who is marketing them for sale by auction at 11am on Thursday, March 20, at the Royal New Zealand Yacht Squadron in Westhaven.
Turner says the properties at 305-309 Ponsonby Rd are strategically positioned on the high-profile corner of Ponsonby Rd and College Hill and include an ASB bank that has occupied the "grandstand corner" at 309 Ponsonby Rd since 1992.
The bank leases 269.37sq m of space with 10 secure basement parking spaces at $201,000, plus GST per annum plus outgoings. "Its rating valuation at July 2011 was $3 million," Turner says. The current lease term is six years from June 14, 2011, with two six-year rights of renewal and a final expiry of June 13, 2023.
The next-door property at 307 Ponsonby Rd has been leased for three years from March 1, 2014, to Cris Giulana Limited, trading as Juli Bridal and generates rent of $50,000, plus GST and outgoings. The area leased comprises 63.99sq m with one undercover secure parking space. One three-year right of renewal gives a final lease expiry of February 28, 2020. The rating valuation of this property at July 20111 was $850,000.
The third property at 305 Ponsonby Rd has two income streams, with Bayleys Real Estate and Encore Designer Seconds Ltd taking on new leases totalling $205,560, plus GST per annum. The 359.74sq m space includes 12 secure basement carparks and its rating valuation at July 2011 was $3.6 million. The Bayleys lease is for six years beginning September 30 last year with two three-year rights of renewal and final expiry date of 2025. Encore Designer Seconds Ltd has a four-year lease beginning August 1 last year with two four-year rights of renewal and expiry date of July 31, 2025.
"The building has an A-plus seismic rating, which is hugely important in the current commercial climate, in that this gives prospective owners the peace of mind of knowing there are no earthquake preparedness issues to work through," says Turner.
"The premises sit at the gateway to the affluent residential neighbourhoods of Ponsonby and St Mary's Bay, and all have long histories of continuous occupancy - which highlights the desirability of their location."
"The property is zoned Business Activity 2, with the draft Ponsonby Road Masterplan and draft Unitary Plan increasing its future potential land uses," Turner says.
"The draft plans are aimed at reinforcing Ponsonby as an entertainment and retail destination, while providing for a variety of housing types and a wide range of employment opportunities.
"Under the current zoning the height restriction is nine metres, however there is a possibility this could be increased to 12.5m in the future, opening the way for apartments to be constructed above the retail strip."
Turner says the high-profile location, excellent tenants, secure basement car parking and it's A-plus seismic rating will tick all the boxes for investors.
"The chances of being able to buy into such a strategic Auckland location like this are far and few between. This property represents a great opportunity for savvy investors," Turner says.
The precinct was named Three Lamps after a three-headed lamp was erected in 1873 at the junction of Ponsonby Rd, College Hill, Jervois Rd and St Marys Rd.
Shops, a post office and hotel, which later became the well-known Gluepot, grew around the intersection and in the late 1800s, the site was the centre of Ponsonby and the starting point for horse-drawn buses travelling into Auckland City.
