Right fit properties for individuals and trusts

10:33 PM Friday January 26, 2018 Colin Taylor

The property at 83 Great South Rd, Epsom, is leased to a fish & chip shop. Photo / Supplied

Featured in Barfoot & Thompson Commercial’s new portfolio, a number of smaller to medium sized properties, are likely to whet the appetite of individual Kiwi investors and family trusts along with owner-occupiers and add-value developers. 

A tasty morsel comes in the form of a building occupied by a fish and chip shop at 83 Great South Rd, Epsom, which is described as “a hassle-free investment property on high-profile intersection of Great South Rd and Market Rd”. 

“It offers a solid long-term income from stable tenants,” says Andrew Clark who, with colleague Cam Paterson, is marketing it for sale by auction at 10am on Thursday February 15 at Barfoot’s 34 Shortland St auction room – unless sold prior.  

The property generates annual rent of $33,600 plus GST and operating expenses (OPEX) from the fish and chip business with the lease expiring September next year and with four three-year rights of renewal giving a final expiry date of September 23, 2031. A ratchet clause states that the rent shall not be less than the previous agreed rent.

The 92sq m building on a freehold 278sq m site comes with four car parks and is zoned Business - Local Centre Zone – permitting an 18m height potential. The permitted use is takeaway food/cafe / restaurant.

“This property is just 4km south-east of the Auckland CBD, on the corner of Great South and Market Rds – with an 8m frontage to Great South Rd - in one of Auckland's most sought-after suburbs,” Clark says. 

“Surrounded by low rise strip retail, office buildings and detached homes, it’s in the heart of Market Rd Village and a short walk from the Remuera railway station. The property is also positioned within the Epsom Girls Grammar and Auckland Grammar school zones, t Diocesan School for Girls, Dilworth School for Boys and St Cuthberts College are also less than 1.5 km away.

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This two-level property at 2 Woodbine Ave, Greenlane is fully leased to six tenants. Photo / Supplied

Paterson says the property has ease of access to State Highway One, with north and south bound off-ramps at Market Rd just 350m away. “Motorway on-ramps are at Gillies Avenue and the Greenlane roundabout, both about one kilometre away,” he says. 

“It benefits from a high level of nearby amenities; with shopping centres, supermarkets, restaurants, hospitals, pools and fitness centres all within five minutes’ drive.” 

The property is zoned Business - Local Centre Zone in the Auckland Unitary Plan which primarily provides for the local convenience needs of surrounding residential areas, including local retail, commercial services, offices, food and beverage, and appropriately scaled supermarkets. 

Expansion will be deemed appropriate if it provides greater social and economic well-being benefits for the community with a permissible height of up to 18m enabling residential use of upper floors. 

Paterson says the building only covers around half the length of the site with the rest gravel carparking with and a tar-sealed access to the western boundary off Market Rd. “The main entrance is off Great South Rd opening into a large high stud retail space with additional food preparation and office areas, leading to the bathroom and exit to the carpark.”

Built in the 1920s, the single level building’s construction is of unreinforced concrete block and weatherboard with iron roofing.

Just off Great South Rd, and not far away in Greenlane, a two-level commercial property is for sale fully leased to six tenants. 

“This is a superbly located 1980s’ split-risk income property bordering Remuera, Ellerslie and Epsom,” says agent Luke Carran who, with colleague Vanessa Coles, is marketing 2 Woodbine Ave for sale by tender closing at 5pm on Thursday February 22 at the agency’s Highbrook office in East Tamaki. 

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Cool Temp leases the building for auction at 194 Moore St, Unit 5, Howick. Photo / Supplied

The freehold 809sq m site on one title has a building area of 481.95sq m excluding stairwell and comes with 14 on-site car parks. The frontage to Woodbine Avenue is 16.95m with an average depth of 47.79m and there is nearby easy motorway access.

Carran says the ground level of commercial office space is leased to Edvance Ltd with car parking in the front; while the first floor is separated into five tenancies with a common hallway stairwell access.

Coles says a favourable Initial Evaluation Procedure (IEP) report dated April 2014 assessed the building at 99 per cent of New Building Standard (NBS). 

“It’s zoned Business Mixed Use under the Auckland Council Unitary Plan Operative in part and is 100 per cent leased with a weighted remaining lease term of 1.38 years as at January 15 with the final lease expiring Oct 2022; and total annual passing income of $103,899 plus outgoings and GST,” she says. 

“This is a prime commercial property in a tightly-held and sought-after Greenlane area and a zoning that allows for redevelopment or conversion, so it’s likely to attract a variety of prospective buyers including investors, owner-occupiers and developers.”

To the east in seaside Howick, agents William Koreman and Jesh Jaskiewicz are marketing an industrial and a retail property that will both go under the hammer at the same auction at 12pm on Tuesday, February 20, at the Barfoot & Thompson Building on the ground floor of 60 Highbrook Drive in Highbrook.  

The first is 160sq m Unit 5 at 194 Moore St, zoned Light Industrial, and occupying a cross-leased site on one title encompassing about a one-eighth share of 2125sq m of land.

The two-level building is fully leased to Cool Temp and earns passing annual income of $20,400 plus GST.

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Kids Krafty Klub and The Bread Store are tenants at 124A Vincent Street, Howick. Photo / Supplied

Koreman says the building has rental upside with flexible lease options in the coming years. 

The second property for auction is on the market for the first time in 30 years and encompasses two buildings with a combined area of 399sq m at 124A Vincent St, Howick.

It’s also on a freehold cross-leased single title encompassing about a third share of 1119sq m with street frontage onto Vincent St. 

“Fully leased to two businesses, The Bread Store and Kids Krafty Klub childcare and learning centre, the property earns total passing annual income of $46,500,” Koreman says.

The two separate buildings don’t share a party wall, he notes.  

“The Kids Krafty Klub one-level building has a rich history as the old Howick Town Hall and appears to have been constructed in the 1960s,” Jaskiewicz says.

The Bread Store occupies a two-level 1980s retail building with the ground level fitted out for bakery uses and car parking in the front. Level 1 comprises small office space for the business.

“The property has favourable seismic reports, significant rental upside and flexible lease options that invite investigation by investors, owner-occupiers and developers.”  

Jaskiewicz says it has “a great profile and frontage onto Vincent St” and is in an area where there is strong local demand for industrial and retail businesses. 

“This February 20 auction presents an opportunity to purchase two prime commercial properties in popular Howick’s highly sought-after and tightly-held industrial precinct that stand to benefit from the suburbs population growth,” he says.