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A multi-tenanted commercial building in a high-profile Mt Albert location is one of three retail properties up for auction in Bayleys Central Maritime Square auction rooms on October 31.
Fully occupied, the property at 935-937 New North Rd comprises a two-level building on 387 sq m of land in three titles. It contains three strip retail tenancies at ground-floor level with a fourth retail tenancy below.
The ground-floor shops all have extensive glazing to the main road frontage, signage on the building's canopy and on the main external wall above it.
Cameron Melhuish of Bayleys Auckland Central, who is marketing the property with Dominic Ong, says it is in good condition, with 935A New North Rd having been refurbished to accommodate a new liquor store tenancy.
The property is producing total net rental income of $118,350 a year from Daves Liquor, which is on a six-year lease from May 2007 with one six-year right of renewal; a travel agent on a six-year lease from April 2003; a foot and health massage business on a six-year term from 2004 and a karaoke bar and café, which occupies the basement tenancy on a three-year term from January 2007.
Melhuish says the property benefits from being close to the populous residential area of Mt Albert and a wide road frontage giving it exposure to large volumes of passing traffic on a major arterial road.
The risk diversification offered by four commercial tenancies and the potential for rental growth as part of the rent review process make this property an attractive investment opportunity, Melhuish says.
Ong is also marketing a newly renovated retail outlet, occupied by a Japanese restaurant, in the Eden Quarter shopping centre on Dominion Rd, with Nicolas Ching.
It has a net lettable area of about 100 sq m and is occupied by SHOBEI restaurant on a four-year lease from July 2007, with two rights of renewal, each of four years. The property is returning net annual rental income of $45,000. Ong says properties in Eden Quarter rarely come up for sale.
The shopping centre, with its location on Dominion Rd, is sought after by retailers and has a number of well-known tenants. Being a smaller unit, it is in an attractive price range for smaller investors and represents a good entry-level investment opportunity.
The third property up for auction is a vacant character building adjoining a planned mixed-use office and retail development at 166 Karangahape Rd.
Nigel McNeill, who is marketing the 342 sq m building with Ong, says it was built around 1910 and consists of prime ground floor retail space, basement storage and two levels of office and residential accommodation above.
McNeill says the property could potentially produce net rental income of $81,500 a year.
McNeill says the property is likely to benefit from its position adjacent to the Ironbark complex, a 10-level commercial complex of more than 5000 sq m of retail and office space being developed by Samson Corp.
He says the area has one of the highest pedestrian counts in the Karangahape Rd precinct.
