The current lease to a florist has been renewed several times since it commenced in 2009, most recently in August for a further two years. It is producing net annual rental income of $31,500 plus GST. Chaudhary says there is considerable potential to increase this income by upgrading the building and possibly increasing its size.
The property is zoned Business Neighbourhood Centre under the Proposed Auckland Unitary Plan which applies to small shopping strips located in residential neighbourhoods. It allows for buildings of up to three storeys high with residential use on upper floors and a variety of commercial uses at ground level.
The property for sale is part of a cluster of retail premises located at the Upland Rd end of Remuera Rd with well established businesses including cafes, bars and eateries along with the Remuera Village Medical Centre and Harvey Furnishings.
"Shops on busy Remuera Rd benefit from great exposure to large numbers of passing cars, buses and pedestrians and draw customers from a wealthy surrounding residential catchment," says Chaudhary.
The property has a Capital Valuation $1,080,000, with $700,000 of this being the land value. "It's a valuable piece of land because of its strong location and has lots of future potential," says Chaudhary.
Oscar Kuang and James Chan of Bayleys' international division and Peter Migounoff of Bayleys South Auckland are also marketing two standalone properties further south which will go up for auction next Wednesday.
One is a 500 sq m two-level building on a 430 sq m site at 202 Great South Rd, Manurewa. Kuang says it is well positioned in the Manurewa Town Centre, with nearby national and international tenants including New World, McDonald's, KFC and TAB.
A ground floor tenancy is currently providing holding income of $40,956 plus GST per annum. It is occupied by a fully licensed bar with nine gaming machines and has a three year lease from October 2012 with one three-year right of renewal. Kuang says there is immediate prospect of increasing the property's income by refurbishing the vacant upstairs office space and converting it to a better use, perhaps residential.
"The property benefits from high foot traffic, dual access, excellent signage exposure and good car parking in the vicinity," says Kuang. "It would suit an investor looking for an add value opportunity or an owner occupier seeking high profile premises on a major arterial route."
In Papakura's CBD, two adjoining two-level buildings are for sale at 28-30 Broadway. Totalling 569 sq m they are located on 488 sq m of land in two separate titles. The ground floor of 30 Broadway is occupied by a Vietnamese restaurant and café on a six year lease which runs until October 2017 and is producing current net annual rental income of $28,665. The building at 28 Broadway is for sale with vacant possession.
"This property is also an excellent add value opportunity being situated in a prime location in the heart of Papakura's town centre among a number of high profile anchor tenants, including Farmers, Flight Centre and Subway, and a short walk to the train station and bus hub," says Kuang. "With several significant housing developments underway and more planned, Papakura is currently an investment hot spot and this offering provides an opportunity to be part of the area's future growth."
What's on offer?
The property: Two level retail and residential character building.
Location: 571 Remuera Rd, Remuera.
Agency: Bayleys.
Sales method: Auction on Wednesday September 23.
Features:
• Building area of 138 sq m on 157 sq m of land.
• High profile frontage to arterial road.
• Add value potential with surplus land at the rear.
• Prime location in wealthy suburb.
• Earns net annual rent of $31,500 plus GST.
For more information on this property visit:
TrueCommercial.co.nz
