Well-positioned CBD investment opportunity

5:00 AM Saturday May 20, 2017 True Commercial

Unit 111 at 125 Customs St is tenanted by a superette. Photo / Supplied

A premises housing a superette on the ground floor of an award-winning Auckland CBD apartment complex is for sale, at an asking price of $530,000.

Bayleys’ International Division’s Quinn Ngo is marketing the leasehold property, along with his colleague Matt Lee.

The property — Unit 111, 125 Customs St — features in Bayleys’ Total Property portfolio and generates net annual rent of $44,133 from an eight-year lease commencing April 2013, says Ngo. There will be one further six-year right of renewal to the superette operator, who has been in occupation since the year after the building was constructed in 2002.

Lee says though the offering is leasehold, the asking price reflects that, equating to a capitalisation rate of 8.3 per cent on its current rental.

“There is also an opportunity to increase what will be a high income return by leasing a secure basement car park which is being offered with vacant possession as part of the sale package,” says Lee.

“Alternatively, an investor living or working in the area could retain the car park for their own personal use.

“The offering represents a good opportunity to secure a well-positioned property in a sought after CBD location close to the waterfront with a well-established convenience store tenant. It draws its clientele from the large numbers of apartment dwellings and office workers based in the immediate vicinity. There’s the bonus of the car park in an area where these are in high demand.”

Quinn Ngo says the tenant pays all outgoings, including the leasehold ground rent payments.

Trading as The Point store, it offers a range of grocery items and is also an agent for Sparkle Drycleaning.

“It is one of three ground floor commercial units in the Viaduct Point apartment complex which provide services to the surrounding populace and is positioned between a medical centre and a cafe and massage clinic,” says Ngo.

The five-level (plus basement car parking) building also contains 78 upmarket apartments, with a frontage on to Pakenham St as well as Customs St West.

“The building completes and complements the earlier development of The Point Apartments which overlook the waterfront with an inner courtyard between the two developments,” says Ngo.

Designed by one of New Zealand’s leading architects Craig Moller, the building won several architectural awards in 2003 and 2004. It is also opposite the Parc apartment and office complex and neighbours Latitude 37, a block of 95 apartments.

The owner of the precinct’s land, Viaduct Harbour Holdings Limited, is also proposing a world-class luxury hotel nearby. Preliminary designs have been drawn by leading architectural firm Warren and Mahoney for a 165-room 5-star hotel, which will provide stunning views of Auckland and the Hauraki Gulf.

Ngo says the hotel will have synergies with amenities and attractions in Viaduct Harbour and will act as a catalyst to attract even more visitors to the area.