Three-level K’ Rd character building
The building for sale at 268 Karangahape Rd is identified by a blue border. Photo / Supplied
The Karangahape Rd home of one of Auckland’s most vibrant nightspots is for sale, offering investors a chance to acquire a split-risk commercial property in a tightly-held city fringe location.
For 17 years, revellers and ravers have crowded into the basement of 268 Karangahape Rd to dance all night long at Ink Bar — Auckland’s go-to club for underground house, disco and techno music.
On the ground floor is vegan-vegetarian cafe Prans Soul Food, while the first floor is a five-room apartment for short-stay accommodation. The three tenancies generate annual rent of $169,092 net.
Colliers International brokers Jonathan Lynch and Adam White are marketing the 383.5sq m property for sale by tender. Offers close at 4pm on August 16, unless sold earlier.
“This character property really is K’ Rd in a nutshell — it’s about as diverse as investment properties get,” says Lynch.
“You’d be hard-pressed to find elsewhere a trendy nightclub in the basement and a healthy, family-run Hare Krishna cafe on the ground floor.”
Built in the 1930s, the three-level commercial building comprises a 105.5sq m basement, 91.3sq m ground floor retail unit, and 113.1sq m first floor apartment. The standalone building is on a 164sq m freehold title with no encumbrances. Its on the southern side of K’ Rd, midway between Mercury Lane and East St, next to popular gay nightspot the Family Bar.
White says the property benefits from a busy urban location with 24/7 pedestrian flows, making it ideal for retailers and hospitality providers.
“The location is set to become even more appealing once the City Rail Link is completed in 2024,” he says. “The new K’ Rd train station on nearby Mercury Lane will endow the area with arguably the best connectivity in the city fringe. Queen St is an easy walk away, while the motorway interchange is two minutes’ drive.”
White says the property has long-term redevelopment potential with a generous Business City Centre zoning and unencumbered freehold title.
This zoning enables a mix of commercial, residential and retail activities, with the greatest intensity of development in terms of height and floor area of any zone in the city.
The building is on a long site with street frontage to K’ Rd.
Its basic construction is of brick infill panels and reinforced concrete framing with timber floors and a lean-to galvanised roof.
The site backs on to a right of way that will directly about the planned K’ Rd City Rail Link station.
Long-standing Ink Bar is near the end of a six-year lease returning $58,032 in net annual rent. The lease has one remaining right of renewal, extending the final lease term to May 2025. Market rental reviews are on a two-yearly basis.
Prans Soul Food, which has a loyal customer base, is on a three-year lease returning $54,260.87 in net annual rent. Two rights of renewal, of three years each, extend the total lease term until June 2025, with three-yearly rent reviews.
The apartment, split into five recently renovated bedrooms, is run as short-stay accommodation by a single point of contact. The periodic tenancy returns $1150 a week. Annual expenses of $3000 bring the net annual rent to $56,800.