Central city triple treat

6:14 PM Friday August 17, 2018 Colin Taylor

The five-level building at 17 Sale St in the Victoria Quarter. Photo / Supplied

Three properties located close to Victoria Park in central Auckland, with both commercial and residential options, are among over 80 commercial and industrial offerings in Bayleys’ latestTotal Property portfolio publication.

Located at 17 Sale St in the CBD’s Victoria Quarter precinct and 37 and 39 Spring St, Freemans Bay, they are for sale through Alan Haydock and Damien Bullick of Bayleys Auckland City & Fringe commercial team.

“It’s unusual for three central city properties of this calibre to be located so close together and for sale at the same time,” says Haydock. “However, they are different types of properties with Sale St being a fully developed site providing a variety of opportunities for investors or owner occupiers; while the two adjoining Spring St sites have the potential to add value through further development.” 

The property at 17 Sale St comprises a modern 530sq m five-level standalone building which was extensively redeveloped in 2005.

It has two levels of contemporary, character commercial office accommodation, and two full-floor luxury apartments above with sweeping views of Victoria Park and the Auckland CBD from their elevated corner position. The building also has secure basement car parking.

Located on a 159sq m freehold site on the corner with Vernon St, it is for sale by tender closing at 4pm, Thursday, September 20, unless sold earlier.

“This is an exceptional opportunity to secure a freehold, standalone property in an unbeatable corner position in Auckland's hottest CBD precinct,” says Haydock. “All the hard work has been done to maximise the full potential of the site’s City Centre zoning and it is presented for sale in an immaculate condition.

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The two adjoining character villas at 37 and 39 Spring St, Freemans Bay. Photo / Supplied

“It would ideally suit someone looking for a high-profile trophy investment acquisition, new commercial premises, or a stunning central city apartment with extra income. It’s a fabulous lock up and leave opportunity with no body corporate costs or hassles to worry about.”

The ground and first floor levels of the building each have 130sq m of largely open plan office space with bathroom and shower facilities. Bullick says the ground floor is vacant and offers an immediate prospect for an investor buyer to add value. Alternatively, an owner-occupier purchaser could move into this space, as well as one or both of the apartments, and use the cashflow from the balance of the building to help mitigate any mortgage costs.

The second office floor is fully leased to a firm of landscape architects and urban designerswhich has been in occupation since 2012 and has exercised its final right of renewal. That lease, generating annual income of $60,000 plus GST, is due to expire in October next year. The two two-bedroom apartments, each of 135sq m, are occupied on periodic tenancies which could be terminated with notice.

Currently, the property is generating total annual income of a $165,000 with the potential, if fully leased, for this to be increased to around $200,000 plus GST per annum, says Bullick

“The building at 17 Sale Street has an elevated, north facing aspect, tucked away behind Victoria Park Market in a quiet one-way street, yet with easy access to motorways, the CBD and public transport,” he says.

“It is well positioned in one of the inner city’s most sought-after locations. The area south of Victoria Park was once the industrial hub of Auckland, but now features a sophisticated mix of historic buildings along with contemporary residential and commercial architecture. The precinct is experiencing a recent wave of high end development, adding to the already impressive collection of distinctive residential, boutique commercial and upmarket hospitality developments such as the City Works Depot.”

Two adjoining character villas with commercial tenants are also up for sale nearby with their Mixed Use zoning presenting a variety of future options.

The villas are located on two separate titles, encompassing 490sq m of land at 37 and 39 Spring St, Freemans Bay just off the CBD end of College Hill, and are fully leased to two established tenancies which generate total annual rent of $81,291 plus GST.

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The villa at 39 Spring St is leased by Forme Skin & Body Limited as a beauty spa. Photo / Supplied

Tenders can be lodged for one or both properties and close at 4pm, Wednesday,  August 29, unless they sell before that deadline.

“Located in a tightly-held pocket of Freemans Bay, the two are ideal for passive investors seeking a central city trophy investment property; or for owner-occupiers and developers looking to make the most of their sought-after residential and commercial position,” says Haydock. “The location has excellent access to amenities, being opposite a premier supermarket, across the road from Victoria Park, and a short walk from a number of award-winning cafes, restaurants and bars.”

The villas are each on their own 245sq m freehold titles and are both zoned Business – Mixed Use, allowing for future development of up to four storeys, says Haydock. “In the short to medium term they would generate a tidy holding income while plans were formulated for this strategic site.”

The two  comprise:

37 Spring Street: a single level 159 sq m dwelling leased to Flinders Cook (Technical Services) Limited and earning net annual rent of $43,000 plus GST. The company has been in occupation since 2009 and in April this year exercised the last of three three-year rights of renewal.

Bullick says the property has been configured to suit the present occupier, encompassing a mix of offices plus an open plan area used as a workroom and laboratory area. Four single car parks are located at the front of the building and there is a secure storage area to the rear.

39 Spring Street: another single level villa of approximately 125sq m including a veranda. It is leased to Forme Skin & Body Limited, also on its last three-year right of renewal which expires in April 2020. This is one of 10 Forme beauty spas in Auckland and Christchurch, with the tenant paying net annual rent of $38,291 plus GST. 

The premises are predominantly used as treatment rooms, with a reception at the entrance, says Bullick. There is an additional structure installed by the tenant at the rear of this property which is also used as a treatment room.

The villas are located close to the corner of Spring St and Scotland St near the New World supermarket and a short walk away from Victoria Park Market. 

“The rapidly developing Victoria Quarter and Wynyard Quarter precincts are close at hand, as is Viaduct Harbour. Nearby College Hill and Franklin Rd also give easy access to to the cafe and restaurant precincts of Ponsonby and Jervois Roads,” says Haydock.

“The two properties are in area that should continue to develop and strengthen commercially and residentially under its Auckland Unitary Plan Mixed Use zoning. This zoning allows for moderate to high intensity residential as well as commercial development, with a mix of compatible residential and non-residential activities encouraged. Subject to resource and building consents, the maximum building height permitted is up to 16 metres of occupiable space plus a two metre height allowance for the roof form.”

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Alan Haydock and Damien Bullick of Bayleys.