Plum property in prestigious Mission Bay
The property at 17 Patteson Ave, Mission Bay, comprises three health care tenancies and three flats
A fully leased mixed use commercial and residential property in Mission Bay is for sale offering immediate access to a substantial rental cash flow and the possibility of future residential subdivision or development under new zoning.
Comprising a two-level building, with three health care tenancies and three residential flats, on an 809sq m site at 17 Patteson Avenue, the property is producing gross annual rental income of $208,303.
Featured in Bayleys’ latest Total Property portfolio, it is being marketed by Cameron Melhuish, Andrew Wallace and James Chan of Bayleys’ central Auckland office and is for sale by tender closing Thursday September 22, unless sold earlier by negotiation.
“This large and pleasantly landscaped property has a very solid leasing history,” says Melhuish. “Health related tenancies have occupied it since it was first built in the 1960s and the spacious two-bedroom flats have always been in high demand. This is not surprising given the property’s position in Mission Bay, just a short stroll from a popular seaside dining and entertainment precinct.”
The 521sq m building has three ground floor commercial suites comprising dental, physiotherapy and doctors’ practices, with three residential tenancies above.
Wallace says the self-contained commercial suites all share a relatively similar layout with a reception area and private rooms.
The practices also have the same lease terms which commenced in April 2007 and are currently producing total net annual income of $135,345. The leases all expire in April 2019 and have no rights of renewal.
“This gives the next owner plenty of flexibility and time to explore the opportunity to either renegotiate these leases or look at other add value options, while benefitting from a substantial cash flow in the interim,” says Wallace.
There are two 83sq m flats at each end of the upper level of the building which have an identical layout. They have two double sized bedrooms, with a lounge and dining area off the kitchen, a separate laundry and a bathroom.
The middle flat, which is smaller at about 69sq m, is also a two-bedroom residence with living and dining rooms, a kitchen and a combined bathroom and laundry.
The flats each have access to one carpark and are producing rental income of between $450 and $490 per week on a variety of lease terms.
There are nine car parks on site, three located in a car port and the balance on a sealed driveway and car parking area..
Melhuish says the property has a Mixed Housing Urban zoning under the Proposed Auckland Unitary Plan which is similar to its current Residential 6B zoning allowing for dwellings of up to three-storeys.
“The zone provides for housing in a variety of sizes and forms, including detached dwellings, terraced housing and low-rise apartments, that will increase the supply of housing, create diverse neighbourhoods and provide housing choice,” he says.
“A new owner could develop the site further to enhance its residential potential or look at subdividing it and selling it on when the leases have expired. Or they could focus on maximising the income the property is currently producing.”
Chan says the property is very strongly located one block away from the centre of Mission Bay. “This is one of Auckland’s most prestigious and highly sought after seaside locations. Investments of this calibre and in this location are seldom presented to the market, particularly properties offering as many options as this one,” Chan says.
(From left to right) Cameron Melhuish, Andrew Wallace, and James Chan of Bayleys.