Multi-income earner at the right price

A mixed-use commercial and residential property for sale on the Pohutakawa Coast south of Auckland offers smaller investors the chance to purchase an affordable investment asset with multiple-income streams.

Located on a 922sq m site at 38 Wakelin Rd at Beachlands, the property is producing total net annual rental income of $57,700 from three commercial tenancies, one of which is a police station, plus an additional $740 a week from two separate residential flats.

It is being marketed by Mike Adams of Bayleys Auckland and Dave Stanley of Bayleys Manukau and will be auctioned as part of the agency's latest Total Property portfolio on May 22 at Bayleys Manukau auction rooms.

"This property offers an excellent opportunity for investors looking for multi-income stream exposure to both the commercial and residential market in an affordable price bracket," Stanley says. "It's also in a go-ahead area in an attractive waterfront location which is likely to experience continuing growth as the Auckland region expands."

The property is in the heart of the main retail precinct in Beachlands, a coastal township on the Pohutakawa Coast, between Whitford and Maraetai, about 20km southeast of the Auckland CBD.

The commercial tenancies have substantial exposure to Wakelin St, a significant thoroughfare for traffic coming into the town centre, with parallel parking at the front of the building and parking off a service lane behind them. A New Zealand Post and Lotto shop has been in occupation since 2003 and has exercised the first of two six-year rights of renewal.

New Zealand Police has been there since 2004 and intends taking up a second three-year right of renewal from August, with the provision of an additional car park, which will increase the property's annual rental by just over $1000.

BNZ also leases a space for a cash-flow machine.

To the rear of the property, and accessed from the service lane, is a two-storey residential dwelling comprising two separate tenancies. One is a two-bedroom ground-floor flat with an outdoor courtyard and palm-tree plantings that generates weekly rental income of $280. Upstairs is a three-bedroom residence with large decks and views north to the Hauraki Gulf. It produces weekly rental income of $460.

Stanley says the house has recently been reclad and modernised and offers a high standard of accommodation.