Three city-fringe Grey Lynn properties - two tenanted, one vacant and all offering new owners a variety of opportunities to add future value - are up for sale as part of Bayleys' latest Total Property portfolio.
Two of the properties are located on busy Great North Rd and the other is on Pollen St, opposite the large "Soho" site that has been purchased by Progressive Enterprises for redevelopment.
The largest of the three properties is a two-level 698sq m building at 136 Great North Rd that is located on a 435sq m site which has frontage on to Putiki St. The building is producing net annual rental income of $107,990 and is for sale by deadline private treaty, closing December 1, through Scott Kirk of Bayleys Auckland.
Kirk says the the property is in a popular and accessible city-fringe location, with excellent main-road exposure about 400m from the intersection with Ponsonby Rd.
The solid concrete building was built in the 1960s and one of its features is a drive-through ground-floor workshop area, with roller doors at the front and rear. There are also seven off-street carparks provided on this level.
The ground floor has a new lease for four years, plus one two-year right of renewal to Auto Tint. This is returning $52,990 plus GST per annum with built-in rental growth through two-yearly rent reviews to the Consumer Price Index plus 2 per cent, to a maximum of 5 per cent per annum. The lease has an early termination clause in favour of the landlord after November 5, 2013, which would enable demolition, refurbishment or expansion of the building, says Kirk.
The tenancy on the first floor, leased for about $117 per sq m, expires in a year and Kirk says it provides genuine potential for rental upside for an investor or could also appeal to an owner-occupier.
This 407sq m floor has 100sq m of air-conditioned office accommodation with the balance comprising workroom space. Kirk says the floor could also possibly suit a residential conversion, following a trend in the area that is seeing older-style warehouse and office buildings converted to retail, showroom and residential uses, providing further potential for rental and capital growth.
The mixed-used zoning allows development up to a maximum height of 15m, a basic floor area ratio of 2:1 and a maximum floor area ratio of 4:1.
A two-level 419sq m character building dating back to the 1920s on a 268sq m site at 570-574 Great North Rd is also for sale through Caleb Belling of Bayleys North Shore Commercial and Nicolas Ching of Bayleys Auckland. The property will go under the hammer on December 7.
The building has three tenancies: a Restaurant Brands' Pizza Hutt outlet and an Indian restaurant and takeaway, both at street level. The third tenancy is a 227sq m four-bedroom residential flat above the shops. The building is located within a main-road shopping strip in Grey Lynn that includes a coffee bar, a restaurant, takeaway food outlet, a hairdresser, a video store and a dairy.
The two retail tenancies are producing net annual rental income of $51,700 which will increase to $52,151 next month as a result of a rent review on the lease to Barkat Indian Takeaway. The first-storey flat is vacant but Belling says there is potential to add considerable value to the property by leasing this out. He estimates this could add potential rental income of $28,600 per annum, including GST and operating expenses, to take the total annual rental income for the building to more than $80,000 when fully tenanted.
"This is an opportunity to own a slice of Grey Lynn's history in a sought-after city-fringe location, with the tenancy risk split across a variety of retail and residential occupants," says Belling.
Also for sale as part of Bayleys' Total Property portfolio is a vacant 304sq m building on a 480sq m site in 38 Pollen St. Close to Ponsonby Rd, the property is being sold by tender closing November 29, through Cameron Melhuish and Alan Haydock of Bayleys Auckland. Melhuish says the property is an affordable freehold building in a premier position, just a short walk from the vibrant shopping centres of Ponsonby Rd and Karangahape Rd. The building is directly opposite the 1.33ha former Soho Square site which has been acquired by Progressive Enterprises for a major retail development that will include a Countdown supermarket.
"Properties in the immediate location comprise a mixture of light industrial, upmarket showrooms and residential apartments, which is a reflection of the favourable underlying mixed-use zoning," says Melhuish. "This zoning, coupled with the strength of the location, has prompted the redevelopment of many properties into higher-value uses. There is certainly the opportunity to do that with this property, particularly as it is in a strategic location that is poised for further revitalisation with the development of the neighbouring site."
The two-level office building comprises a ground-floor area of 237sq m and an upper level of 67sq m. The frontage, which has been modernised, features aluminium joinery with full-height glazing at ground level and Skyfoil aluminium louvres above. The building is set back from its Pollen St frontage, providing space for five carparks. It is also set back from the rear boundary, allowing room for a small outdoor courtyard area.
Melhuish says the building lends itself to a wide range of uses.
"With its high-stud, open-plan ground-floor area and polished concrete floors, it would be suitable for character offices or an upmarket showroom. The upper level is ideal for professional offices or even a self-contained residence. There is also the potential to create an appealing outdoor entertaining area at the rear of the property."
A 1920s character building at 570-574 Great North Road contains three retail tenancies. Photo / Supplied
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