Kingsland building offers owner several options
The three-level mixed-use building for sale at 507 New North Rd, Kingsland. Photo / Supplied
A three-level mixed-use Kingsland building with both retail and residential tenancies is being marketed as “a well maintained and hassle-free property”.
“It’s located right in the heart of Kingsland’s busy shopping and hospitality strip,” says Cam Paterson of Barfoot & Thompson Commercial, who is marketing 507 New North Rd for sale by tender closing at 3pm on Wednesday March 27.
Paterson says the building, occupying a 334sq m freehold site, is occupied by The Fridge, a long standing cafe tenancy in the lower levels; with a separate high quality four-to-five bedroom apartment above.
“The rectangular shaped site has a 13m boundary to New North Rd and a depth of 28m,” he says.
“The property presents a number of options for the next owner including maintaining its current status as an income generating investment property; or its use as a home with income. The upstairs residence would particular suit a person working from home like an artist or writer; or a buyer may want to offer the apartment to a university student daughter or son - with both the University of Auckland and Auckland University of Technology being relatively close via good public transport. Steady income could continue to be derived by renting out the street level cafe space.
“Conversely, with The Fridge having agreed to partial surrender of lease at the discretion of the owner, a retail purchaser might want to occupy the retail premises while continuing to rent out the apartment above.”
Paterson says the high stud retail space has two access points from New North Rd and was previously in separate tenancies.
The immediate space is about 9m deep with two stairways to lower levels and access to deck areas and rear courtyard. The lower levels consist of retail/storage spaces to the east and a kitchen on the western side.
The Fridge Cafe occupies all the available retail space in the building. Photo / Supplied
“There are two bathrooms allowing for a future division into separate tenancies if desired,” Paterson says.
The total retail area of about 341sq m comprises: 77sq m of prime retail space, 74sq m secondary retail space, 78sq m lower level space, a 44sq m deck and a 68sq m courtyard.
The Fridge pays $83,825 per annum and 68.5 per cent of the Operating Expenses (OPEX)
on a new lease which commenced January 1, 2019; with two three-year rights of renewal and two-yearly rent reviews to market price.
The upstairs apartment is accessed by a stairwell from New North Rd with its large open space divided into four-to-five bedrooms, one bathroom, a kitchen and dining area and two large open sunny living areas.
“The kitchen and dining area to the north has long unobstructed views towards the Grey Lynn Ridge and access to a sunny deck at the rear,” Paterson says.
The four-five bedroom residence is rented out at $795 per week or $41,340 per annum on a lease through to March 2, 2020.
With unrecovered OPEX of $6095 deducted, the property in total earns $119,070 per annum.
Paterson says there is room for rental growth with the income from the retail tenancy equating to $245 per sq m which is low for the area.
“The property has been meticulously maintained and presents a tidy warm environment for occupants,” he says.
The property is zoned as Business Local Centre which typically has a height limit of 18m but this is restricted to 13m due to a Kingsland height variation control. The zoning provides for the local convenience needs of surrounding areas, including retail, commercial services, offices, food and beverage, and smaller scale supermarkets.
Completed in the early 20th century, the building is of concrete construction with brick infill and a recently replaced iron roof. Paterson says property is at the centre of the Kingsland commercial precinct surrounded by “great restaurants, boutique eateries, convenience retail outlets, liquor store, giftware shops, professional firms, pharmacies and doctors’ surgeries”.
He says the Kingsland train station is two minutes’ walk away while very regular bus services run past the front door. In addition Eden Park is a five minutes’ walk away.