Keen bidding at latest Bayleys’ auctions
The retail block at 1 Glendale Rd, Glen Eden, sold for $3,325,000. Photo / Supplied
A West Auckland corner retail store and an Auckland CBD apartment building were the stand-out sales that went under the hammer for over $3 million each, at Bayleys’ second Total Property portfolio auction of the year.
“A total of five properties, from eight offerings, were sold at the auction at Bayleys House,” says Richard Valintine, Bayleys Commercial auctioneer.
“The number of properties offered indicates changes within the commercial property market, but the sales still showed the advantages of the auction process,” Valintine says.
“Undoubtedly, the market has tightened, and stock has become harder to get, as evidenced by the smaller number of properties presented for auction compared to the same period last year.
“However, those up for bidding were vigorously fought over and achieved good prices for their vendors.”
A significant sale was that of a retail block at 1 Glendale Rd, Glen Eden, marketed by Bayleys sales agents Mike Adams, Jean-Paul Smit and Alan Haydock, which sold for $3,325,000 at a yield of 7.55 per cent.
The 1511sq m freehold corner site earns $251,224 plus GST from two established tenants on long leases - a Salvation Army store and Cash Converters/
The property, which is in a high traffic area, encompasses 680sq m of space within a modern building and came with 33 on-site car park spaces. Its favourable zoning under the Auckland Unitary Plan, Business - Town Centre, provides future development options - including buildings of up to 27m in height.
The property sold at 20 Huntly Ave, Grafton is identified by a red border. Photo / Supplied
Cash Converters occupies 370sq m of space, on a six-year lease term ending in October 2022, with two six-year right of renewals. The tenancy, which includes 17 car parking spaces, generates $131,986 plus GST in annual net rent.
The Salvation Army occupies 309sq m, on an initial two-and-a-half-year lease ending in May 2019, with two right of renewals of two-and-a-half years each. The tenancy includes 16 car parking spaces and generates $119,237 plus GST in annual net rent.
Another significant sale over the $3m mark was 20 Huntly Avenue, Grafton, marketed by Phil Haydock, Bayleys’ City Fringe sales agent. The fully-leased, freehold investment property on an 801sq m site, comprises seven self-contained one and two-bedroom residential units and earns net rent of $191,880 a year.
Valintine says the property’s solid revenue stream, its location within the Double Grammar school zone and closeness to Auckland University, AUT and Auckland Hospital, were features which made it an attractive investment for bidders in the auction. Bidding started at $2m climbing steadily up to the final successful bid of $3,650,000 for a yield of 5.25 per cent.
The Orewa retail unit at 8K Moana Ave, Orewa, sold for $605,000. Photo / Supplied
“Also drawing interest was the area’s Residential - Single House zoning, which means it’s unlikely that the new owner will be competing with apartment developers,” says Valintine.
Also attracting strong interest before selling under the hammer was a retail unit in Orewa, a superette in Papatoetoe and an industrial storage unit in East Tamaki. All three achieved yields of less than 5 per cent.
The Orewa retail unit at 8K Moana Avenue, marketed by Bayleys sales agent Mustan Bagasra, sold for $605,000 at a yield of 4.95 per cent, with bidding starting at $500,000.
The single-storey 85sq m property is occupied by Liquor Town, on a three-year-lease expiring in 2019, with three further three-year rights of renewal; and generates net rent of $30,000 a year.
Liquor Town is among multiple retail premises in the hub which has around 40 non-metred car parks immediately in front of the store. The store and hub also draw custom from the adjacent 150-unit Nautilus apartment block.
In Papatoetoe, a retail property at 70 St George St sold for $655,000. Photo / Supplied
An industrial unit at 21B Andromeda Crescent, East Tamaki, offered by Bayleys Manukau sales agent Nelson Raines, sold for $501,500 at yield of 4.58 per cent, with bidding starting at $380,000.
The industrial property generates net rent of $23,000 a year and has 215sq m of floor space. It sits in an elevated block of seven units with a wide driveway allowing ease of access.
At a Bayleys auction in East Tamaki, a single-level, freehold, retail investment property at 70 St George St, Papatoetoe, marketed Bayleys Manukau sales agents Ash Jogia, John Bolton and Dave Stanley, sold under the hammer for $655,000 at a yield of 4.59 per cent.
Earning $30,100 a year plus GST and outgoings, the property has 120sq m of floor space occupying a 362sq m land site, and is leased to a superette operator until August 2018, with four four-year rights of renewal.