Centred on corner in Victoria Quarter
The ground floor property for sale is at the intersection of Centre and Drake Sts in Auckland’s popular Victoria Quarter. Photo / Supplied
A fully-tenanted retail unit is for sale on the ground floor of a prominent corner site in Auckland’s popular Victoria Quarter.
Though officially at 20 Centre St, the property is perhaps easier to describe as being at the corner of Centre and Drake Streets.
Featured in Bayleys’ latest Total Property portfolio, it is being marketed by Oscar Kuang, Ben Wallace and James Chan.
The ground floor unit is part of a low-rise commercial and residential development, which comprises two upper floors that are not for sale. It will be auctioned on August 2, unless sold earlier.
Wallace says the 247.5sq m freehold strata-titled unit represents an affordable opportunity in a revitalised area, one previously known for mainly warehouse and industrial use.
“This inner-west part of the city is changing shape dramatically with new commercial projects under way, or recently completed, and residential living options following suit,” he points out. “Development in Sale St is taking off and the success of the City Works Depot in Wellesley St shows this part of the city has pulling power.
“The recently-opened Swiss-Belsuites Victoria Park hotel on the former Victoria Park carpark site has improved the aesthetics of the neighbourhood. There’s an eclectic mix of heritage buildings and newer commercial/residential property stock in this part of town.”
The unit for sale is tenanted by established Turkish cafe-eatery Turko, facing Drake St, and the international homeware showroom tenant, Zimba Designs, facing Centre St.
These tenancies — 79.2sq m and 168.30sq m respectively — generate total annual rental income of $100,000 net and both leases expire within two years.
Rights of renewal exist, though Zimba Designs has indicated it won’t seek renewal when its lease expires in September next year.
“This opens the door for an owner-occupier to secure a nicely-located premises with holding income from the cafe, or gives an investor the opportunity to seek out a quality tenant and to ramp up the rental equation,” says Kuang.
“In our assessment, retail is the best and highest use for the unit. The Turko cafe business is reporting solid turnover thanks to increased foot traffic from corporate tenants in the immediate area and guests at the new hotel on the corner.”
Drake St is home to numerous hospitality outlets, including Allpress Espresso and Roastery, the soon-to-open Waiwera (formerly Freemans and then Drake) Hotel plus a raft of restaurants such as La Zeppa, Hansik and TomTom.
The Victoria Quarter precinct is defined by Auckland Council as that area bounded by Hobson, Fanshawe and Union Streets and the northern motorway.
Following a $22m refurbishment, Victoria Park Market has a mix of boutique retail, eateries, bars creative studios and office space. “The International Convention Centre is being built on the corner of Hobson and Nelson Streets, providing an injection of confidence and energy,” says Kuang. “Auckland planning regulations regulate design and development options in this part of the city. But whoever purchases 20 Centre St will be in good company, because big dollars are being invested in this part of town.”