Four North Shore commercial properties up for sale in Bayleys’ latest national Total Property portfolio offer opportunities for investors, developers and owner occupiers.
A three-level commercial building located in the heart of the Highbury Town Centre in Birkenhead offers a split-risk investment opportunity with future development potential.
Located on an 802m2 freehold site at 49-55 Birkenhead Avenue, the 481m2 building is currently occupied by a mix of retail, office and residential tenancies which will generate net annual rental income of $112,070 for the next owner. Longer term, the property’s favourable Town Centre zoning under the new Auckland Unitary Plan, with a 21 metre height allowance, means it has considerable development appeal, says
He is marketing the offering, which is up for sale for the first time since it was originally developed in the mid 1960s, with Bayleys North Shore Commercial colleague David Huang and Oscar Kuang of Bayleys’ International Division. It is among four North Shore commercial properties that will go under the hammer on September 13, unless sold prior to that date, as part of Bayleys’ latest Total Property portfolio auction.
“The property is currently providing a good spread of income across several tenants in a well-established locality which makes it an ideal low risk investment,” says Michael Nees. “Modest rental rates in some of the tenancies with forthcoming rent reviews means that there will be an opportunity to increase the income return in the immediate future.
“Further out, the flexible zoning, coupled with 9-15 month demolition clauses in the majority of the leases, offers many commercial and residential development options, subject to obtaining the necessary resource consent.”
David Huang says the site’s ridgeline position provides panoramic views out across Le Roy’s Bush to the Hauraki Gulf, the harbour bridge and the Auckland CBD. “It is one property away from a new viewing platform, public plaza and café designed to take in those views, which has recently been completed by Auckland Council as part of a rejuvenation programme for the Highbury Town Centre.”
The upper level of the building which fronts onto Birkenhead Avenue contains two retail tenancies, the long-established Tongue & Groove Café and the Majestic Barber Shop. There is an office to the rear also occupied by Tongue & Groove Café under a separate lease.
On the middle floor are two commercial suites, one of which
is occupied by another longstanding tenant, the Birkenhead Avenue Dental Centre. A basement studio has a single 148m2 residential tenancy.
David Huang says over the past four years close to $115,000 of improvement work has been completed on the building, which can be accessed from the front and the rear. “Access to the rear of the property and unutilised land there means the site has real potential for a spectacular mixed use development with residential on top to make the most of the views.”
Another property with development potential, or which alternatively would suit an owner occupier, comprises a 1029m2 underutilised site at 755 Beach Road in Browns Bay with a small 70m2 building with a fully equipped commercial kitchen. It is being offered for sale with vacant possession through Ranjan Unka and Anna Radkevich.
Ranjan Unka says the building is fully equipped for food retailing, with outdoor seating and front and rear parking, and a fish and chips takeaway has been in operation for over 25 years. “This is a great opportunity for another operator to carry on the existing business, or for a new owner to develop something new such as a bakery, café, pizza or sushi outlet. There is an extensive chattels list included in the sale of the property.”
Anna Radkevich says the property benefits from excellent exposure to Beach Road, a main arterial with a high traffic count connecting the motorway with Browns Bay’s commercial and residential areas, with the added advantage of being within walking distance of the beach, two supermarkets and the Browns Bay retail centre.
Two Albany investment units up for auction on September 13 are each likely to sell for around the average residential house price on the North Shore – offering affordable access to the commercial property market for smaller investors and family trusts.
One is a 186.7m2 commercial unit that has housed Bayleys’ Albany residential office since 2004. Located on the upper level of 372 Rosedale Road, at the busy roundabout intersection with William Pickering Drive in the Albany Estate, the property’s current lease runs until the end of September 2018 with two further rights of renewal of 18 months each.
The lease is generating net annual rental income of $58,209 plus GST, with CPI adjustments every two years and reviews to market every time a renewal is exercised.
Matt Mimmack, who is marketing the property with Eddie Zhong, says it is part of a 28-unit commercial development in two blocks with ample parking at the rear. “The complex’s wide span and its corner position makes it easily recognisable and means it stands out from the other surrounding buildings.”
He says the unit’s good quality and functional fitout includes a central reception and waiting area, four large offices, two meeting rooms including a boardroom, plus a kitchenette. “Part of it has recently been refurbished to the tenant’s exacting specifications and there is ducted air-conditioning through the office areas.
“The extensively glazed unit has a high level of natural daylight as well as a pleasant outlook. The property’s elevated aspect facing two arterial roads and the roundabout also provides huge signage exposure which Bayleys has maximised to profile its brand and services.”
Eddie Zhong says the property’s six open car parks at the rear of the building is a generous provision for a unit of this size. There is vehicle access off both Rosedale Road and William Pickering Drive with extensive, established landscaping around the complex.
He says the location provides great access to public transport as well as motorways north, south and west (SH1 and 18). A variety of shops, restaurants, cafés, bars and medical centres are nearby and the property is approximately five minutes’ drive from the Westfield Albany Mall and Albany Mega Centre.
A similar sized Albany investment unit is also up for auction in a retail convenience centre in Unsworth Heights. The 186m2 Shop 7 at 1 Greenwich Way with five designated carparks has a three-year lease from April 1, 2017 to Bookprint Ltd which is generating net annual rental income of $51,520 plus GST.
Bookprint specialises in producing short run books and booklets – ranging from 25 to 1000 copies – for a wide range of clients from companies and educational organisations to private authors.
“The tenant has undertaken a significant and attractive character fitout, creating an excellent working environment,” says Dean Gilbert-Smith, who is marketing the offering with Adam Curtis. “The lease provides built-in rental growth with further rights of renewal.”
The premises is part of an eight-unit strip retail complex developed to service the growing community of Unsworth Heights. Its tenant mix also includes a café, superette, liquor store, Chinese and Indian takeaways and hobby shop.
The complex is next door to Metlifecare’s substantial Greenwich Gardens retirement village which is under development and is also surrounded by high density housing developed to accommodate Auckland’s expanding population.
“Being at the intersection of Greenwich Way and Unsworth Drive, the complex enjoys dual exposure on a prominent corner site with easy access to ample car parking in front of the units,” says Adam Curtis. “It’s also very close to Upper Harbour Highway (SH18) and the northern motorway (SH1).”
Bayleys’ final two Total Property commercial and industrial portfolios for 2017 close off on September 8 and October 20. Owners wanting to sell this year and ensure maximum exposure and competition for their properties should contact Bayleys North Shore Commercial.