KEY POINTS:
A two-level retail character building at 305-307 Remuera Rd, at the Newmarket end of the main retail strip of Remuera Rd, is for sale through David Campbell and Jack Brabant of CB Richard Ellis.
Constructed in the 1920s, the building is situated on a high-profile 321 sq m site, zoned Business Two which allows for retailing, office and commercial service activities at a medium-intensity suburban level.
The property is fully leased and generates a net income of $137,000 a year on various terms, with rent reviews every two or three years.
The street level contains two tenancies.
Atelier Hairdressing has operated from the premises for the past 11 years while the other tenant, Sabai Sabai Thai restaurant, modernised an existing restaurant in 2006.
The upper level houses a character office with polished timber floors, kitchen and bathrooms, while Telecom Mobile operates a cell site on the roof.
From the top floor of the building there is a limited harbour view to the north and an outlook to One Tree Hill to the south. Campbell says the property occupies a regular shaped site with a 9.14m frontage to Remuera Rd with a depth of 35.5m.
The building consists of a 250 sq m ground floor area, 107 sq m of top floor space, and a basement cell site of 20 sq m - for a total net lettable area of 357 sq m.
Campbell says he sold the nearby properties at 398-404 Remuera Rd a year ago to local investors, reflecting a 6 per cent yield, and a ROW office building at 349 Remuera Rd for a 6.2 per cent yield.
"Both investors and tenants appreciate this is a tightly held mature area with property occasionally handed from one generation to the next," Campbell says.
Vacancy is typically nil, and recently one tenant received a significant payment to exit their premises in favour of a neighbour seeking to improve their accommodation.
Brabant noted that the property is enclosed by residential dwellings in a commercial area unlikely to be affected by large-format operators and retaining a local village charm.
"At the same time it is only five minutes from the bustling Newmarket commercial area," Brabant says.
The property will be sold by Private Treaty at 4pm on Wednesday October 17 unless sold prior.
