Go West for investment

The property housing Paula Bennett's electorate offices is passed by 25,000 cars daily. Photo / Supplied

When Auckland franchisees of the popular La Porchetta Italian restaurant wanted to open a second outlet in West Auckland, the best space they found for the new venture was the ground floor of an attractive, modern office building in the heart of the New Lynn shopping area - so they bought the whole property.

The owners, who also operate the La Porchetta restaurant in Hobson St, carried out a substantial refit of the ground floor of the four-level building and with the restaurant now having successfully passed its first anniversary, they are selling the property with a lease over their own space in place and additional income from other tenants.

The 1809sq m building at 3055 Great North Rd goes up for auction as part of Bayleys' latest Total Property portfolio on September 21, unless sold prior, and is being marketed by John O'Brien and Chris Upright of Bayleys Auckland. It is producing total net annual rental income of $272,820.

O'Brien says the building is fully leased with a range of tenants including several, such as a subsidiary of IHC, which have occupied their office premises for a number of years. La Porchetta, which occupies the entire ground floor, has taken a six-year lease over its restaurant with the final expiry date of 2021, if all rights of renewal are exercised.

The building is one of New Lynn's larger and more modern ones, having been constructed in the mid-1980s and upgraded subsequently. It has an attractive, low maintenance design and recent renovations include the modernising of the foyer entrance and repainting of the exterior. The building features north-facing decks on each of the office floors and is air conditioned.

The ground-floor, east-facing walkway was enclosed as part of the La Porchetta fit-out and this has increased the tenancy area by 15sq m. The office block sits on an 830sq m freehold site and comes with 10 parking spaces.

The property is in the heart of the New Lynn redevelopment precinct, with $300 million being expended as part of Auckland Council's growth strategy to support the new integrated rail and road transport hub. The property is opposite the revamped Transport Centre, adjacent to a council-owned carpark and close to LynnMall shopping centre.

Also for sale in West Auckland in Bayleys' Total Property portfolio is the 344sq m building at 429 Great North Rd, Henderson, housing Cabinet Minister Paula Bennett's electorate offices. The property is being sold as a fully leased investment with two tenants in the 1940s brick and tile house that has been converted to office space, and is being marketed by John O'Brien and Chris Upright, of Bayleys Auckland, with expressions of interest closing on September 23.

Located on a 1191sq m corner site between the Henderson shopping area and Lincoln Rd, the property is highly visible to the more than 25,000 cars that pass it daily.

Paula Bennett's offices are upstairs with a three-year lease until January 2012, plus one three-year right of renewal. Stutton Osteopathic occupies the downstairs rooms on a four-year lease to January 2013, with one four-year right of renewal. O'Brien says both floor levels are in excellent condition with new paint, carpets and good amenities.

The property is producing net annual rental income of $50,000 and comes with 17 on-site parking spaces and a Community Periphery zoning. O'Brien says the property would be a good investment option for someone looking for rental growth.

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