Alehouse and cafe a satisfying combo

The well known Galbraiths Alehouse at 2 Mt Eden Rd is for sale by deadline private treaty. Photo / Supplied

Two Auckland landmark heritage buildings at the junction of Symonds St, Mt Eden Rd and Khyber Pass Rd are being marketed individually for sale by CB Richard Ellis on behalf of Esquires Systems.

The well-known Galbraith's Alehouse at 2 Mt Eden Rd is being sold through Harold McCracken of CBRE, who is also selling, with colleague Colin Stewart, the prominent character building occupying the high-profile corner of 204-218 Symonds St and 15-23 Khyber Pass Rd.

Galbraiths is for sale by deadline private treaty closing October 28, while the two-storey building on the corner of Symonds St and Khyber Pass Rd is being sold by deadline private treaty closing November 3.

McCracken says the one-level Galbraiths Alehouse building has become an integral part of the neighbourhood.

"This popular local pub offers a floor area of 486.6sq m on a 741sqm site and is leased by The Galbraith Brewing Company Limited, providing an annual net income of $150,500. The lease commenced on September 10, 2002, with 15 years of the 22-year lease left to run."

The building is listed as a Category B Heritage Property within the Auckland City District Plan, but it is not on the New Zealand Historic Places Trust register.

Originally the Grafton Public Library, the building's foundation stone was laid by Auckland's mayor, Christopher James Parr, in September 1912.

The library closed in 1991 and, in 1995, Galbraith's Alehouse opened its doors to thirsty patrons who were served over a huge bar made of 40,000-year-old swamp kauri.

Among its many awards, Galbraith's Alehouse was named Best Pub in 2004, 2005, 2006, 2007 and 2009 by Metro magazine. The internet bar guide Viewauckland.

co.nz gives Galbraiths five out of five stars, stating: "If you're living in Auckland, Galbraith's Alehouse is ground zero for the Kiwi beer renaissance - the kind of place where it's ridiculously easy to become a regular."

McCracken says a long lease, its high-profile location and great reputation as a pub will appeal to investors "who appreciate history, a long-term property hold and a pint".

Stewart says the nearby building occupying the Symonds St and Khyber Pass corner offers a great mix of retail, office and residential tenancies, returning about $320,000 plus per annum net from over 2800sq m. "In multiple titles, it offers significant tenant exposure to the thousands of cars that pass every day."

Tenants comprise a wide variety of businesses, including top restaurant The French Cafe, which is currently on a five-year lease with three rights of renewal, taking a final expiry to 2023 if exercised.

Other tenants include the Bike Retail Group, Alternative Sports, Bungalow Bills Music Shop, Aotearoa Digressive & Digital Limited and the Symonds Superette, as well as five occupied residential tenancies.

Stewart says the 2813sq m property includes 1200sq m of retail space on the ground floor, 491sq m of office accommodation on the first floor facing the street and 862.5sq m of apartments opening to a courtyard at the rear.

Currently vacant are a 120sq m commercial unit and a 90sq m residential tenancy.

"With multiple tenancies and expiry dates, there is an opportunity to improve the tenant mix and the income," Stewart says.

He notes that the property is located within a wider retail precinct extending from Alex Evans St to the north through to the Mt Eden Rd and New North Rd intersection to the south.

"A number of the buildings in this precinct have been upgraded and refurbished over recent years to offer a modern standard of retail accommodation, office and, in many cases, residential apartments," Stewart says.

Although listed as a Category B Heritage Property within the Auckland City District Plan, the building is not on the New Zealand Historic Places Trust register.

Records show the property was built in 1910-1911 for The Pierce Trustees, designed by Bamford & Pierce Architects of Hobson St, and known until at least the mid-1940s as the Pierce Building.

From 1919 to 1929, it was occupied by Seddens department store, and R&W Hellaby Meats also occupied space on the Khyber Pass frontage during the 1920s.

Pierce Properties sold the building in 1944 to Grace Bros, when it became a furnishing store through the 1950s and 1960s.

Khyber Pass Rd links the southern extremity of Symonds St and Newton Rd with Newmarket and the eastern residential suburbs - serving as a feeder route through the fringe of central Auckland and carrying a high volume of traffic, especially during peak periods.

"This area is in close to the Auckland CBD and motorway connections and a council-owned carparking facility is one site over," Stewart says.

He says the property offers real potential to improve the income for a hands-on landlord around the star dining attraction, The French Cafe.

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