Archive | K Rd

2 Westgate sales & 5 leases on Shore & K Rd

Bayleys North Shore agents completed 2 industrial unit sales at Westgate in November, and signed 5 leases on Karangahape Rd (pictured), Takapuna, and 3 in Rosedale.

Sales

North-west

Westgate

Northside Drive, lot 1, unit 1:
Features: 325m² industrial unit, 4 parking spaces
Outcome: sold in November for $895,000 + gst, at $2754/m² land & building
Agents: Matt Mimmack & Ashton Geissler

Northside Drive, lot 1, unit 2:
Features: 650m² industrial unit, 8 parking spaces
Outcome: sold in November for $1.92 million + gst, at $2954/m² land & building
Agents: Ashton Geissler & Matt Mimmack

Leases

CBD

K Rd

258-264 Karangahape Rd, level 1:
Features: 370m² retail area
Rent: leased in November for $48,000/year net + gst, premises rental $130/m²
Agents: Terry Kim

North-east

Rosedale

33 Apollo Drive, unit 3:
Features: 174m² office, 5 parking spaces
Rent: leased in November for $45,200/year net + gst, parking $20/space/week, net rent excluding parking $40,000/year, premises rental $230/m²       
Agents: Laurie Burt & Alex Strever

68 Paul Matthews Rd, unit D:
Features: 190m² industrial unit, 3 parking spaces
Rent: leased in December for $35,000/year net + gst, parking $5/space/week, net excluding parking $34,220/year, premises rental $150/m²  
Agents: Alex Strever

8 Piermark Drive, unit E:
Features: 224m² industrial unit
Rent: leased in November for $36,000/year net + gst, premises rental $161/m²
Agents: Laurie Burt & James Kidd

Takapuna

66 Anzac St, ground floor:
Features: 76m² retail, 2 parking spaces
Rent: leased in November for $27,780/year net + gst, parking $55/space/week, net excluding parking $22,060/year, premises rental $290/m²
Agent: Ildy Meixner

Attribution: Agency release.

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Icon puts refurbished St Kevins Arcade back on market

The Icon Group (2014) Ltd owner Paul Reid has put St Kevins Arcade on Karangahape Rd up for sale after refurbishing it over the last 2 years.

The 2431m² 3-level retail, office & residential complex, built in 1924, sits on 1250m² at 183 Karangahape Rd and is fully leased with 35 tenancies generating $1.168 million/year net income. The tender through Bayleys closes on Wednesday 14 June, unless sold prior.

Mr Reid said the decision to sell fitted with the company’s commercial add-value business model. The proceeds would be recycled into Icon’s next project.

“We’re very proud of what we’ve achieved with the refurbishment of this iconic building. We’ve spent considerable funds restoring the arcade and carefully choosing quality tenants while still retaining its point of difference & character. We have also de-risked & stabilised the asset for the next owner and believe it will deliver superior long-term capital growth.”

St Kevins Arcade, outlined.

The arcade has 21 ground-floor & basement retail and food & beverage tenants, 6 upper-level commercial suites including a recording studio, 4 apartments and 4 storage & parking units. It has a 22m frontage to K Rd and steps down to Myers Park and the lower end of the cbd.

The refurbishment & restoration included a full interior & exterior repaint & retiling, new roofing and the reinstatement of historical corbels & leadlight glass. Modern building services such as new fibre cabling were also installed and the first-floor offices & amenities and 4 residential units were upgraded.

Bayleys agent Alan Haydock said the property had a weighted average lease term of about 3.5 years and many of the leases had fixed annual rental increases, which would provide the next owner with steady rental growth. Fellow agent Damien Bullick said retailers should also benefit from the opening of the nearby city rail link Karangahape Rd station, scheduled for 2023.

Link: St Kevins Arcade

Attribution: Agency release.

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Tender documents go out for rail link tunnels & stations

The first tender documents for the largest component of Auckland’s city rail link project – the construction of the tunnels & new stations – were released to the industry yesterday, a fortnight after expressions of interest were sought for the design, procurement, installation & commissioning of all tunnel track work & rail systems between Britomart Station & the Western Line at Mt Eden.

2 new stations will be built as part of the underground rail line linking Britomart with the existing western line near Mt Eden. The new stations will be near Aotea Square (artist’s impression at top), with entrances at Wellesley & Victoria Sts, and a station in Mercury Lane, just off Karangahape Rd. The Mt Eden train station will be extended & redeveloped. Associated works are already underway around downtown Auckland.

An artist’s impression of the new Karangahape station, which will be the deepest at 30m below ground.

Project director Chris Meale said yesterday the 2m-wide tunnel-boring machine simultaneously excavating & installing a new stormwater pipe under Albert St had finished the first leg of its journey. The 9-storey-high piling rig working in Albert St has dug over 140 of the 376 piles required.

An artist’s impression of the planned redeveloped station at Mt Eden.

The tunnels & stations contract will be procured using a design & construct model with a lump sum price based on a bespoke contract.

Attribution: Auckland Transport release.

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2 apartments & commercial unit sell at Bayleys auction

2 apartments & a commercial unit were sold under the hammer at Bayleys’ auction today, including a 2-level unit in the former George Court’s department store on Karangahape Rd (pictured).

CBD

Uptown

George Court’s, 238 Karangahape Rd, unit 2L:
Features: 2 levels, 4m stud, 2 bedrooms, 2 bathrooms, walk-in wardrobe, parking space, storage locker
Outgoings: rates $6724/year including gst; body corp levy $2298/year
Outcome: sold for $800,000
Agents: Julie Prince & Diane Jackson

Waterfront

The Quay Regency Apartments, 148 Quay St, unit 10E:
Features: 3 bedrooms, 2 bathrooms, 2 parking spaces
Outgoings: rates $3544/year including gst
Outcome: passed in at $1.2 million
Agents: Andrew Bond

Isthmus east

Royal Oak

Royal Oak Mall, 691 Manukau Rd, unit 54:
Features: 126m² floor area on first floor, tenanted by Wellbeing Physiotherapy & Acupuncture
Outgoings: body corp levy $5929/year
Income assessment: $17,000/year net + gst
Outcome: sold for $145,000
Agents: Matt Lee & James Chan

Isthmus west

Eden Terrace

31 St Benedicts St, unit 3:
Features: one-bedroom loft apartment, secure parking space, storage locker, roof remedial work being considered
Outgoings: rates $2427/year including gst; body corp levy $7907/year
Outcome: sold for $741,000
Agents: Julie Prince & Diane Jackson

Attribution: Auction.

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5 multi-million sales struck

Bayleys agents have completed 2 more sales out of the agency’s first Total Property auction for the year, plus 3 more sales – in a price range from $1.15 million up to an industrial complex at $5.64 million.

CBD

K Rd

136 Karangahape Rd:
Features: Fully leased 1083m2 building on 616m2 site, Rock Shop occupies 465m2 ground-floor retail space, 458m2 longstanding office tenant above plus 110m2 warehouse fronting Cross St
Rent: $204,350/year net + gst
Outcome: sold for $3.2 million at a 6.4% yield
Agents: Cameron Melhuish & Andrew Wallace

Isthmus east

Penrose

17 Greenpark Rd:
Features: refurbished 1100m2 building on 1939m2 site zoned business 4 – 499mground-floor showroom/office, 422m2 warehouse, 228m2 office, 25 parking spaces; owner is staying on as tenant for 16 months from settlement
Outcome: sold for $2.5 million at a 6.4% yield
Agents: James Hill & James Valintine

Isthmus west 

Avondale

30-32 Rosebank Rd:
Features: 868m² elevated corner development site zoned business 4, next to the Avondale train station, comprising 2 industrial buildings & a bungalow totalling 322m², leased to 3 tenants; plans drawn up for a 32-apartment development
Rent: holding income of $44,416/year + gst
Outcome: sold for $1.15 million
Agents: James Were & Scott Kirk

South

East Tamaki

42 Sir William Avenue (pictured above):
Features: 4429m2 building on 7042m2 site comprising 3985m2 warehouse, 384m2 office, 60m2 amenities & 40 parking spaces, occupied since 1996 by Textile Bonding, which has renewed for 4 years from July 2015
Rent: $415,925/year net + gst
Outcome: sold for $5.64 million at a 7.4% yield
Agents: James Hill, Sunil Bhana & Mike Houlker

Pakuranga

Highland Park, 20-22 Dunrobin Place, unit 4:
Features: 462m² unit occupied by Anytime Fitness on a 10-year lease from May 2014
Rent: $120,000/year net + gst
Outcome: sold for $1.54 million at a 7.8% yield
Agents: Quinn Ngo & Sunil Bhana

Attribution: Agency release.

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Villas & K Rd lot sold for development

Barfoot & Thompson Commercial has reported 6 sales through from City Rd in one direction and to Newmarket in the other. They included 2 Kingsland villas sold for a land value of $2833/m² and a parking lot at the Grey Lynn end of Karangahape Rd for $3938/m².

CBD

Uptown

5 City Rd:
Features: m², B grade historic scheduling, seismic rating of 31% new building standard
Rent: $125,000/year from 2 hospitality tenants on long leases
Outcome: sold for $1.775 million at a 7% yield
Agents: Cam Paterson

The vacant lot at 520-536 Karangahape Rd.

The vacant lot at 520-536 Karangahape Rd.

520-536 Karangahape Rd & 2 Gundry St:
Features: 1272m² site, B2 & mixed-use zone
Rent: $119,852/year with early termination clauses
Outcome: sold for $5.01 million at $3938/m² land
Agents: Cam Paterson & John Stringer

Isthmus east

Newmarket

9 Morgan St:
Features: 352m² site in mixed-use zone
Rent: $53,072/year, leased until February 2016 with 2 2-year rights of renewal
Outcome: sold for $1.41 million at a 3.76% yield
Agents: Cam Paterson & Dave Palmer

11 Morgan St:
Features: 354m² site in mixed-use zone
Rent: $88,105/year from 2 short-term leases
Outcome: sold for $1.7 million at a 5.18% yield
Agents: Cam Paterson & Dave Palmer

Isthmus west

Grey Lynn

400C Great North Rd:
Features: 235m² net lettable area, warehouse/office in mixed-use zone, 4 parking spaces
Outcome: sold for $850,000 at $3617/m² of building
Agents: Cam Paterson & Reese Barragar

Kingsland

13 & 15 Kingsland Terrace:
Features: 706m² of land just off New North Rd, mixed-use zone, westerly aspect
Outcome: sold with vacant possession for $2.107 million at $2833/m² land
Agents: Cam Paterson

Attribution: Agency release.

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3 sales & 11 leases for Bayleys Shore agents

Bayleys agents on the North Shore have recorded 3 sales in Albany & the Wairau Valley and 11 leases signed, including 2 across the harbour.

Sales

North-east

Albany

6 Airborne Rd, unit 13:
Features: 120m² industrial unit, 2 parking spaces
Outcome: sold in February for $452,500 + gst at $3770/m² land & building
Agents: Laurie Burt & James Kidd

7 Dallan Place, unit B:
Features: 200m² industrial unit – 67.2m² warehouse, 102.8m² office, 30m² mezzanine, 3 parking spaces
Outcome: sold in December for $435,000 + gst at $2175/m² land & building
Agents: James Kidd & Laurie Burt

Wairau Valley

93 Ellice Rd, unit E:
Features: 503m² industrial unit – warehouse 389m², office 114m², 9 parking spaces
Outcome: sold in March for $810,000 + gst at $1610/m² land & building
Agents: Laurie Burt & Adam Watton

Leases

CBD

K Rd

258-264 Karangahape Rd, basement:
Features: 220m² warehouse area
Rent: leased in February for $12,000/year + gst + opex at $55/m², no parking
Agent: Terry Kim

Isthmus west

Avondale

1906 Great North Rd:
Features: 367m² retail, 20 parking spaces
Rent: leased in February for $55,000/year + gst + opex at $150/m²
Agent: Terry Kim

North-east

Albany

5 Beatrice Tinsley Crescent, unit C:
Features: 414m² unit – warehouse 282m², office 132m², 7 parking spaces
Rent: leased in February for $57,000 at $137.68/m²
Agents: James Kidd & Laurie Burt

14 Corinthian Drive, unit 10:
Features: 102m² retail unit – 85m² retail area, 17m² yard, shared parking
Rent: leased in February for $45,000/year + gst + opex at $441/m²
Agents: Eddie Zhong, Michael Block & Damian Stephen

12 Vega Place, unit A:
Features: 236m² unit – office 148m², warehouse 78m², 4 parking spaces
Rent: leased in February for $36,000/year at $152.54/m²
Agent: Laurie Burt

51 William Pickering Drive, unit 12
Features: 55m² retail area
Rent: leased in February for $25,000/year + gst + opex at $455/m²
Agents: Michael Nees & Adam Curtis

Silverdale

33 Forge Rd, unit 1:
Features: 350m² unit – warehouse 300m², office 50m², 8 parking spaces
Rent: leased in March for $34,700/year at $99.14/m²
Agent: Rosemary Wakeman

Takapuna

415 Lake Rd:
Features: 286m² office, 17 parking spaces
Rent: leased in January for $70,000/year + gst + opex at $181.34/m²
Agent: Damian Stephen

Wairau Valley

Part of 217-225 Archers Rd:
Features: 390m² warehouse
Rent: leased in February for $35,000 at $90/m²
Agent: Laurie Burt

52 Diana Drive, unit B:
Features: 309m² unit – warehouse 263m², office 46m², 5 parking spaces
Rent: leased in February for $40,000 at $130/m²
Agents: Laurie Burt & Adam Watton

75 View Rd, unit 7A:
Features: 100m² unit – retail 80m², shared common area 20m², 3 parking spaces
Rent: leased in February for $15,000/year + gst + opex at $187/m²
Agent: Terry Kim

Attribution: Agency release.

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K Rd building sells at 8%, Telecom Place building 3 at 7.25%

A 90-year-old Karangahape Rd building (pictured right) has been sold on an 8% yield, compared to 7.25% for the brand new $65 million building 3 at Mansons TCLM’s Telecom Place.

In 2 other sales by Bayleys agents, owner-occupiers have bought office units in Administrator House & the old South British Building – the South British one after being passed in at an auction in early June.

CBD

Learning Quarter

Administrator House,44 Anzac Avenue, unit H:
Features:282m² penthouse level office, deck & water views, 2 basement parking spaces & storage unit
Outcome: sold to existing owner-occupier for $675,000 at $2230/m²
Agents: Cameron Melhuish & Damien Bullick

Shortland St

Old South British Building, 3-13 Shortland St, office unit 8B:
Features: 373m², refurbished office unit split into 4 tenancies, purchaser will move into the one 106m² vacant tenancy
Rent: $74,567/year net + gst from 3 tenancies
Outcome: no bid at auction in June, sold now for $1.425 million at $3815/m²
Agents: James Were & Scott Kirk

Uptown

208 Karangahape Rd:
Features:670m2 site, 1920s-built 1532m2 3-level building with an IEP assessment of 21.9% of new building standard, ground-floor tenant Discount Mart has 6-year lease until March 2017 plus one 6-year right of renewal, and there’s a number of smaller monthly tenancies
Outcome: sold for $1.75 million at an 8% yield
Agents: Colin McKenna & James Chan

Victoria Quarter

Building 3 at Telecom Place (now Spark City).

Building 3 at Telecom Place (now Spark City).

Corner Victoria St West & Dock St:
Features: 7495m²  Building C at Telecom Place (now Spark City), fully leased to Telecom Corp of NZ Ltd (now Spark NZ Ltd) for 10 years from June 2014 with fixed annual rental increases of 3% for initial 10-year term, and with developer Mansons TCLM Ltd also providing a capital & defects warranty until 31 May 2024
Outcome: sold to Augusta Funds Management Ltd for $65,186,117 at a 7.25% yield; Augusta is offering 780 $50,000 proportionate interests in the property
Agent: Paul Hain

Attribution: Agency release.

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Family team combines to create luxury at 8 Hereford

2 late-1980s commercial buildings just down from the Karangahape Rd ridge are gaining new life as residential conversions at the hands of father & son developers Mike & David Mahoney, of Tawera Group Ltd, and their family support team.

Annabel Mahoney does marketing, older sister Josephine Love does interior design (Josephine Design Ltd) and her husband, John, is chief financial officer.

Reconstruction has started on the hexagonal 15 Hopetoun, the former Baycorp House which will be converted into 91 apartments, and the next Mahoney development, 8 Hereford, was launched to buyers on Thursday night.

Although the configuration for 8 Hereford was for 119 apartments, one buyer has taken the whole “front” on the top floor – with views to the cbd, harbour bridge and over Freemans Bay – 3 apartments to be combined into a 400m² interior with a 75m² deck.

15 Hopetoun, the first luxury apartment project in Auckland since 2007, secured 50 sales on opening night. Bayleys Real Estate chairman John Bayley said at the 8 Hereford opening: “Michael Mahoney has an uncanny ability. Not many people can pick the market and pick the sites.”

David Mahoney said in an interview during the week that, as they finished their conversion of the former Beca office building at 132 Vincent St, they saw the need for bigger floorplates and thought they had the answer at 15 Hopetoun.

“Unfortunately they weren’t big enough. We offered 104m², they wanted 200m² – the purchasers come from really big homes. Originally we thought 15 Hopetoun was going to be an easier project because it was smaller, but we kept going outside the existing floorplate for size.”

The floorplates are hexagonal, but the new design by Clark Brown Architects incorporates decks pushing further out – “something with more character & bulk,” David Mahoney said.

“Because of the new lift technology, most of the gear is in the shaft so we’re creating 3 extra levels, taking it from 9 levels to 12, but only going 1m higher.

8 Hereford (left) & 15 Hopetoun, beneath the K Rd ridge overlooking Freemans Bay.

8 Hereford (left) & 15 Hopetoun, beneath the K Rd ridge overlooking Freemans Bay.

“The bigger apartments were very popular and a few buyers have purchased more than one to get size – the largest one is 280m². The same has happened at 8 Hereford. One purchaser has bought the whole front on the top floor – 3 apartments of 145m², 125m² & 130m² on the design, to be turned into one of 400m² plus 75m² of deck.”

15 Hopetoun & its neighbour, No 9, were developed by Unity Group (Mark Wyborn & David Muller) in the 1980s as a contrasting pair rather than as identical twins. No 9 Hopetoun is a mix of apartments & commercial.

Across Hereford St, Hong Kong newspaper magnate Sally Aw, initially in partnership with local developer Baker Corp Group Ltd (John Baker), built their office tower in the same era, looking across to the cbd & harbour, with a line of shops & offices in the heritage Plaza building on Karangahape Rd. Western Park, Auckland Girls’ Grammar School and the motorway prevent any further development in front of them.

8 apartments of 63-140m² remain unsold at 15 Hopetoun. 8 Hereford will be a mixed building – 12 apartment levels above 4 floors of parking & 2 of office.

False ceilings will be taken out to raise ceiling heights to 2.7m and new glazing, plumbing, electrics & lifts will be installed, but David Mahoney said the conversion would still be much faster than a new-build: “We hope to start construction early next year and finish in mid-2016. To build from new, we’d be here 3 years. One of the real benefits I’ve found is the ability to take a purchaser around and show them the view from the physical space they will occupy.”

Unlike many apartment buildings, the focus here is on owner-occupiers: “You can’t make it work on a yield basis, they’re too big. It’ll wash its face, but capital gain is the main driver. If you’re looking for a yield, there’s other product that will do it better.

“We’re calling them apartments – ideally I’d like to see them as homes. On the fifth floor there will be a pool and a 110m² gym, a decent space rather than something poky. On the level above, there will be a theatre & library because a lot of the buyers are downsizing. A few apartments do have theatre rooms, but not all of them.

“We’ll have a concierge plus a live-in manager. I really want to take it to the next level. No one’s really done that in terms of service – for security, the personal touch, to be able to be welcomed home by your first name, really just to make life easier. I watch a lot of movies and I like that New York sort of thing, just going that extra mile.”

Sales exceeded $70 million before launch night, out of $140 million of apartments & parking spaces, which are being offered separately: “They’re an extra, not everyone wants one. We’ve got the ability to give at least 2/apartment, 478 in total at $50,000 each. The commercial premises will soak up quite a few, but I feel there will always be a surplus.”

Although the large decks might change calculations, Mr Mahoney said pricing based on internal areas ranged from the mid-$7000s/m² up to $13,000/m².

Image above: David Mahoney at 8 Hereford, with the cbd in the background.

Attribution: Interview.

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Updated: Large George Court apartment sells

Published 10 July 2014, updated 11 July:
An apartment in the old George Court department store building on Karangahape Rd proved the building’s popularity yesterday when it was sold at City Sales’ auction. An Uptown unit was passed in, but sold unconditionally the next day.

CBD

Uptown

George Court, 238 Karangahape Rd, unit 2C:
Features: split-level, 124m², 2 bedrooms, study, parking space
Outgoings: rates $1713/year including gst; body corp levy $6843/year
Income assessment: not given
Outcome: sold for $605,000
Agents: Gabrielle Hoffmann

Update: 14 Upper Queen St, unit 2G:
Features: 44m², fully furnished one bedroom, deck, parking space
Outgoings: rates $1030/year including gst; body corp levy $3020/year
Income assessment: $400-460/week
Outcome: passed in at $300,000, sold unconditionally the next day
Agents: Habeeb Urrahman

Attribution: Auction.

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