Herne Bay commercial villas a ‘superb investment’
These two villas at 155 & 157 Jervois Rd, Herne Bay have been renovated into business premises.
Two neighbouring freehold standalone Herne Bay properties comprising residential villas that have been converted for commercial use, will be auctioned early next month as part of Bayleys’ Greater Auckland portfolio
The property at 155 Jervois Rd is a 147 sq m renovated dwelling on a 658 sq m site and the 150 sq m villa conversion next door at 157 Jervois Road occupies 372 sq m of land. The two are being marketed by Ranjan Unka and Brian Caldwell of Bayleys North Shore Commercial in conjunction with Kate Kirby of Bayleys Auckland and will be auctioned separately on behalf of a group of private investors on March 4, unless they sell earlier by negotiation.
“This a superb investment opportunity strategically positioned on the corner of Jervois Road and Sentinel Road in a very sought after part of the commercial precinct of Herne Bay,” says Unka. “Some properties on the northern side of this part of Jervois Road have been converted for commercial use while on the southern side of the street there are a number of popular restaurants, cafes and a variety of specialty retail shops.”
Unka says both properties have undergone high quality fit outs for commercial use while retaining many of their character features such as wooden floors, sash windows and high stud ceilings. He says both tenants are well established commercial businesses that have operated out of the premises for a number of years and have exercised rights of renewal on their leases.
The corner site at 155 Jervois Road is occupied by Merino Kids, an award-winning, baby and toddler sleepwear and clothing company. It has been selling merino wool products designed to keep young children warm in cold weather and cool in hot temperatures for over 10 years. Its range includes the Cocooi babywrap/waddle and Go Go sleep bags designed for toddlers up to the age of four. The firm also markets body suits, gowns and pyjamas, bedding and Ecostore skin care products.
Unka says Merino Kids conducts much of its business on line and uses the villa predominantly for showroom, meeting and office space, with a small cottage and shed in the rear yard. “The property is an important branding tool for the company and the grounds and the buildings have been meticulously maintained and are in immaculate condition.”
The Merino Kids baby and infant wear company occupies 155 Jervois Road, Herne Bay.
The Merino Kids lease is currently producing net annual rental income of $63,286 and runs until late 2016 with no rights of renewal which Unka says could open up an opportunity for an owner occupier.
The adjoining property at 157 Jervois Road is occupied by Ardmore Developments Ltd, a privately owned property investment and development company established in 1995.
Caldwell says Ardmore Developments Ltd identifies underperforming property assets in the industrial, commercial, retail and residential sectors and looks to add value through various methods including redevelopment, improved efficiency and market repositioning.
The company currently has a two year lease producing net annual rental income of $38,000 plus GST, with two further rights of renewal, which if exercised would take its final expiry through until 2020.
He says the building is used as office space and has also been well maintained – retaining its original ornate gable features and a feature window on the front façade which add to its street frontage appeal. The property also has a basement garage and off street parking.
Both properties are currently zoned Residential 1 but, under the notified Auckland Unitary Plan, they have a proposed zoning of Local Centre which applies to a large number of small centres throughout Auckland where good public transport is available. These centres are designed to cater for the convenience needs of surrounding residential areas, allowing for smaller scale retailing, including superettes and food and beverage outlets, commercial services and offices.
Buildings of up to four storeys or 16.5 metres are permitted, with residences on the upper levels. However, any new developments require resource consent and should be designed to a high standard to enhance the quality of streets and public open spaces in the local centres.
Kirby says converted villas on main roads are in strong demand from commercial tenants and owner occupiers in both Herne Bay and Ponsonby. “An increasing number of businesses are looking for character premises that enable them to make a statement about their business. They don’t want to be located in an anonymous office building with a bunch of other tenants.”
Rajan Unka, Brian Cadwell and Kate Kirby of Bayleys.
For further information on these properties featured on TrueCommercial.co.nz click on the links below: