Avondale add-value investment property

The property, at 9 St Jude St, consists of two buildings on 1104sq m of freehold land zoned business mixed use. Photo / Supplied

Avondale land and buildings housing a diverse range of tenants — from an engraving and trophy retailing business through to a designer furniture hire company — have been placed on the market for sale.

The property, at 9 St Jude St, consists of two buildings on 1104sq m of freehold land zoned business mixed use under the Auckland Council plan.

It is being marketed at auction on 11am on April 10 through Layne Harwood and Kate Kirby of Bayleys.

Both buildings were constructed in the mid-1960s.

At the street front of the property is a two-storey concrete block structure originally designed for 104sq m of showroom space on the lower level with 140sq m of office area above.

The building at the rear has open-plan warehouse and manufacturing areas combined into 360sq m, with 36sq m of basement storage. It is constructed of timber and steel truss framing between concrete block walls.

A corner of the roof space on the front building is leased to mobile phone operator Two Degrees for hosting one of its network repeater masts. The property has on-site car parking for 12 tenants' vehicles, with additional customer parking immediately in front of the property, on St Jude St.

The Commercial Four tenancy schedule for the property combines to create annual rental of $102,487 plus GST, and consists of:

● Corporate and function furniture hire company Arkade occupying the rear building on a lease running through until 2021, with one further three-year right of renewal, paying annual rental of $56,700 plus GST;

● Specialist engraving and trophy retailing business Milestones occupying the retail portion of the front building on a lease running through until 2022, with one further two-year right of renewal, paying annual rental of $22,000 plus GST;

● The offices of administrative support company Sysint Solutions occupying the upper level of the front building on a lease running through until 2021 paying annual rental of $15,840 plus GST; and

● Telecommunications company Two Degrees on a six-year lease running through to the end of this year, with three further six-year rights of renewal, paying annual rental of $6948 plus GST.

Harwood says it caters to a range of buyer types — including those requiring a simple commercial investment, with tenants in place and providing the opportunity to secure longer-term tenancies through refurbishment as space became available.

"Alternatively, an owner-occupier could take part of the property in due course, while a developer could plan for a mid-term development option for the completion of a mixed-use commercial and residential building over four levels," Harwood says.

Auckland Council's Business — Mixed Use zoning allows for the construction of buildings up to 21m high.

"Each of the four tenancies operates independently of each other — ensuring a broad profile for any potential buyers looking at the property through an investment lens," Harwood says.

"Within that configuration, there is opportunity to increase the efficiency of the office space portion in the future."