Grey Lynn property leased to bakery

An elevated view of 37-39 Crummer Rd - identified by a red border

A strategically positioned freehold Grey Lynn property encompassing three buildings totalling 1003 sq m with 17 car parks and redevelopment added-value potential is being offered for sale after being in the same family ownership for 29 years.

"This is a sound property in a buoyant location that has provided a long-term residence along with a good rental income for the vendors," says Cam Paterson of Barfoot & Thompson Commercial who is marketing the city fringe property at 37-39 Crummer Road for sale by tender closing at 4 pm on Thursday August 27 unless it sells earlier by negotiation.

"The 965 square metre land parcel has over 27 metres of frontage to Crummer Rd with easy access to bus routes and is a short stroll to the Ponsonby and Grey Lynn shops," Paterson says. "The current Mixed Use zoning under the operative district plan allows for commercial and residential development to a height of 15 metres but - of interest to investors and developers - this is extended to 24.5 metres under the Proposed Auckland Unitary Plan."
Paterson says the three buildings are divided into three tenancies encompassing a ground floor commercial bakery along with two upper attractive apartments.

"The apartments could also be suited to office use and are subject to short term occupancy arrangements," he says.
"The tenancy arrangements give a purchaser the options of occupying the property commercially and/or residentially; or leasing it as a well positioned investment asset with the potential to develop the site in the future.

"The surrounding area has been subject to substantial development in recent times and this is set to continue making this property well positioned to increase in value as the city grows.

"The high demand for housing is changing the composition of inner city suburbs as commercial precincts are making way for higher value residential accommodation. The greater number of residents will also increase demand for retail and commercial space."

The property currently earns annual rent of $126,942 rental from two tenancies with one of the apartments vacant.

The ground level tenancy of 548 sq m fronting Crummer Rd is occupied by the bakery and includes office, retail and amenities space along with 10 of the 17 car parks. A six year lease for $98,342 per annum plus GST commenced on September 1, 2008 with one six-year right of renewal giving a prospective final expiry date of August 31, 2020, with reviews two yearly to market rates. Outgoings are 100 per cent payable on a pro rata basis of 54 per cent.

The first level frontage area of 109 sq m is a two bedroom flat that is vacant. It has an estimated annual rental potential of $30,000 while a rear 346 sq m apartment of four bedrooms earns rent $28,600 per annum rented short term to the vendor's son, but which has a market rental potential of $52,000 per annum.

To the rear and built up to the north eastern boundary is a single level workshop which adjoins a larger two storey warehouse and workshop structure to the north-western boundary. A sealed car park and driveway area occupy the balance of the site.

Paterson says the three buildings were constructed in the 1970s with alterations and additions in later years and appears to be of concrete foundations, with reinforced concrete block column walls along with concrete block infill panels and some fibrolite. The walls incorporate aluminium joinery and the roof appears to be trough galvanised metal with some translucent panels over paper and netting supported by metal purlins and beams.

"The ground floor bakery tenancy spans all three buildings," Paterson says. The lower level of the building to the front is regular office space divided into multiple rooms with

a bathroom and two external entry points. The central building is single level and was accessed by two large roller doors indicating a garage type use. NZ Post, the previous tenant, closed in the tenancy to its current state.

The stud height is about 4.2 metres and is used for the bakery's food preparation area. The ground level of the rear building is accessed via a roller door and pedestrian entry to the south of the structure. "This entry point offers a generous stud height suitable for truck access and the balance of the space has a false ceiling," says Paterson. The space is divided into storage, loading, food preparation, bathroom amenity sections along with ovens and chillers.

The front flat has its own access off the car park leading to a large two bedroom apartment and to have appears to originally constituted office space but has been upgraded into a large good quality two bedroom apartment. "This is a very attractive residence and it will be sold vacant," Paterson says.

The rear flat has its own access from a separate stairwell inset from the ground floor level and also appears to have originally been commercial space but has been repainted and reconfigured to provide a large high stud cathedral-styled residential loft apartment with four double bedrooms and one full bathroom and separate toilet.

The rear flat will be sold with a standard residential tenancy in place for $550 per week with an expiry of November 30.

For more information on this property visit:
TrueCommercial.co.nz