Units A, B, and C at 2 Sanders Ave, Takapuna are identified by the three tall palms. Photo / Supplied
Units A, B, and C at 2 Sanders Ave, Takapuna are identified by the three tall palms. Photo / Supplied
Auckland's commercial property market remains highly active with vacancy rates close to historic lows approaching two per cent and an abundance of investors seeking to add to their portfolios, says the foreword to Barfoot & Thompson Commercial's new Insite portfolio publication.
"Fundamental supply side constraints in the development sector, coupled with the continuing growth of the city's population, lead us to believe there will be little in the way of any softening in the price of commercial property or in higher rentals," the introduction states.
The agency recommends that investors who can now purchase on the commercial property market "would do well to capitalise on the Reserve Bank's forecast that interest rates will remain at current levels for the foreseeable future".
About 30 properties, displayed within the new Insite portfolio, are all within the Auckland region and include a featured North Shore commercial property in Takapuna.
"This property presents an exceptional opportunity to own prime corner real estate adjacent to Takapuna's commercial district, and within 150 metres of one of Auckland's finest beaches," says Nick Brown of Barfoot & Thompson North Shore Commercial.
With colleague, Max Andrews, Brown is marketing Units A, B, and C at 2 Sanders Ave, Takapuna, for sale by private treaty closing at 4pm on Wednesday August 29 – unless it sells earlier.
Vacated by a restaurant tenant, Unit CU10, Shed 23, Princes Wharf, 145 Quay St. Photo / Supplied
"The site is held in three freehold unit titles on about 890sq m of land and purchasers have the option to buy one, two or all three units," Brown says.
"The property comprises two contemporary concrete tilt slab buildings with a total gross floor area of around 640sq m and 15 car parks."
The larger building has basement parking with ground and first floor offices totalling 420sq m.
• Ground floor Unit A of 210sq m with six car parks is leased for $64,569 per annum to Brightstar Design Trading as Vikon Design and Construction on a lease running through to August 31, 2026 if two rights of renewal are exercised. • First floor Unit B, also of 210sq m and with six car parks, is leased to Forsyth Barr Ltd paying annual rent of $63,949 on a lease to end February 21, 2022 with a right of renewal exercised. • Unit C comprises a second building of three levels encompassing office, residential, garage and storage space and is enhanced by attractive gardens. Having a total area of 220sq m and three car parks, it is leased to Architect Homes Limited on a gross lease basis earning $44,180 per annum until June 1, 2019 at which date the landlord has the discretion to on-charge operating expenses to the tenant. With a right of renewal, the lease ends on May 31, 2021.
Andrews says the buildings were constructed in the late 1990s and benefit from being close to Takapuna's amenities and major arterial routes including the State Highway 1 Northern Motorway.
"The Mixed Use zoned, rectangular site has a 19-metre frontage to Lake Rd and a 48-metre frontage to Sanders Ave," he says.
Across the harbour, a ground level retail unit is for sale on Princes Wharf in downtown Auckland.
"Vacated by the Secret Garden Premium Buffett Restaurant, it's currently fitted out as restaurant premises with an extensive chattels list but may also be suited to office accommodation," says broker Bill Carlson. He is marketing Unit CU10, Shed 23, 145 Quay St for sale with vacant possession by tender closing at 4pm on Thursday August 16.
"The unit is leasehold with 77 years remaining on a ground lease with a nominal rental of one dollar per year," Carlson says.
The dual tenancy property for sale at 468 Rosebank Rd, Avondale. Photo / Supplied
"The ownership Structure of Prince's Wharf is Crown Land, leased for l00 years from l995 to 2095 to Ports of Auckland Limited; and with a sublease to Dockland Wharf Leases Limited which expires September 7, 2095. These individual commercial, retail and car park units in Shed 23 are then leased, and held by, the registered owners of units.
"Princes Wharf has been redeveloped into a multi-storied, upmarket residential, retail and commercial centre anchored by the Hilton Hotel, as well as still being used as a cruise ship terminal. Shed 23 is one of six structures erected on the wharf and is a six-storey building completed in l999."
Carlson says the unit for sale has a ground floor area of 528.58sq m with frontages to the waterfront and a wharf access lane of around 24m each.
"It's towards the northern end of Shed 23 and has sea views over the Auckland Harbour to the west."
Moving 'out West' to Avondale, a large retail and warehouse property is on the market in the popular Rosebank Rd commercial precinct.
Also, for sale by tender closing at 4pm on Thursday, August 16, the 468 Rosebank Rd is being marketed by Colin Stewart who describes it as "a superbly located 1960s' multi-tenanted commercial property".
Earning annual rent of $194,375 plus GST from two tenants, the freehold property has a total lettable building area of 2298.25sq m occupying 4047sq m of land that has onsite space for 41 car parks.
The front retail tenancy of 127.6sq m is occupied by Top Choice Bakery paying $33,175 plus GST per annum; while a much larger area of 2170.65sq m is leased to Surplus Traders for annual rent of $161,200 plus GST.
Stewart says the level land in one title has a frontage of 34.14m to the southwestern side of Rosebank Rd and has exposure to 20,000 vehicles passing by each day.
"The flexible Business - Light Industry zoning, allows for 100 per cent site coverage with a building height of up to 20 metres, so this property offers superb redevelopment opportunities in the medium to long-term," he says.
1140 Coatesville-Riverhead Highway comprises the green field land running along road frontage at bottom. Photo / Supplied
Further north, a large corner property of 2.4266ha is for sale in Riverhead after being held in the same family for 50 years.
"Astute purchasers with an eye to the future will see the huge potential in this strategic land holding which has a Future Urban zoning under the Unitary Plan," says broker John Stringer who, with colleague Eddie Zhao is marketing 1140 Coatesville-Riverhead Highway for sale by tender, closing at 3pm on Wednesday August 15.
Stringer says the north facing level site is essentially rectangular in shape with 300m of road frontage allowing for easy future development.
A five-bedroom house built in the 1940s occupies a portion of the land with separate double garage and sheds.
"The Future Urban zone is applied to greenfield land that has been identified as suitable for urbanisation. But this zone is transitional, so the land may be used for a range of rural activities but cannot be used for urban activities until it is rezoned," Stringer says.
"Farming, greenhouses and market gardening are among the present permitted uses along with care centres for up to 10 people, but the real value of this property lies in its Future Urban zoning."
Zhao says Riverhead has seen significant growth in recent years and is one of only a handful of areas in the Northwest identified for Future Urban development.
"This property is well positioned across the road from residential subdivisions and will benefit from a future zoning change that will help Auckland cope with its increasing population."
He says Auckland Council envisions urban development within the Future Urban zone around 2028-2032.
