Archive | Papatoetoe

2 old suburban centre retail strips sell

Streetfront retail properties in New Lynn & Papatoetoe – both redevelopment prospects – sold under the hammer at Colliers’ auction today.

North-west

New Lynn

3114-3120 Great North Rd (pictured above):
Features: 486m² site zoned business – metropolitan centre, 307m² single-level strip retail building, 18m street frontage, 4 tenants, 3 leases expire in 2021, 2023 & 2025 with no renewal right, rear parking
Rent: $85,240/year net + gst
Outcome: sold for $1.3 million + gst
Agents: Gareth Fraser, James Appleby & Josh Coburn

South

Papatoetoe

74 St George St, Papatoetoe (outlined).

74 St George St:
Features: 1174m² site zoned business – city centre, allowing for development up to 27m high, 368.5m², land at rear used as shared parking, building fully tenanted
Rent: $101,641/year net + gst
Outcome: sold for $1.95 million + gst
Agents: Gareth Fraser & Matthew Barnes

Attribution: Auction documents.

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Queen St & College Hill apartments sell

Apartments in CityLife on Queen St and the Perspective on College Hill were sold at Bayleys’ auctions last week.

A Waiheke Island unit overlooking Onetangi and a Papatoetoe property with multiple tenancies were passed in.

CBD

Queen St

CityLife, 171 Queen St, unit 1109:
Features: 63m², one-bedroom apartment, out of hotel pool but access to all hotel facilities
Outcome: sold for $545,000
Agents: Jon Fisher & Julie Quinton

Hauraki Gulf Islands

Waiheke Island

Onetangi

8 Victoria Road North, unit 5:
Features: 2-bedroom unit, deck, parking space
Outcome: passed in
Agent: Cathy Cameron

Isthmus west

Freemans Bay

Perspective, 28 College Hill, unit 424:
Features: 116m², 2 bedrooms, 2 bathrooms, 2 parking spaces, 2 storage spaces
Outcome: sold for $1.23 million
Agents: Blair Haddow & Jono King

South

Papatoetoe

13 Fyfe Avenue:
Features: 1345m² section, multiple residential property in mixed suburban zone, 5 income streams – 1950s house, 3 bedrooms, garage; block of 4 2-bedroom units, each with carport
Income: $105,300/year from tenancies ranging from 2-13 years
Outcome: passed in
Agents: Ash Jogia & Tony de Leeuw

Attribution: Agency release.

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Updated: Sub-5% on 3 properties sold at Bayleys commercial auctions, one further sale in September

Published 13 April 2018, updated 23 September 2018
4 of the 7 Auckland commercial properties offered at Bayleys’ second Total Property auction of the year on 11 April sold under the hammer, and another commercial property sold the previous day at an East Tamaki auction. 3 properties were passed in.

3 of the sales were at yields under 5% in strong competition for smaller investments – down at 4.6% for 2 of them, the East Tamaki industrial unit and a superette in Papatoetoe.

Update, 23 September: The Wairau Valley industrial unit passed in at auction was sold in September.

Isthmus east

Grafton

20 Huntly Ave:
Features: 801m² site zoned residential – single house, 405m² fully leased dwelling containing 7 individual residential tenancies with their own kitchens & bathrooms
Rent: $191,880/year; single-bedroom units rent for $390-$400/week, 2-bedroom units $550-
$650/week
Outcome: sold for $3.65 million at a 5.26% yield
Agents: Phil Haydock & Damien Bullick

North-east

Orewa

8K Moana Ave:
Features: 85m² retail unit in large retail & office plaza with multiple tenancies fronting central customer parking area, 3-year lease to liquor store from October 2016, 3 3-year rights of renewal
Rent: $30,000/year net + gst
Outcome: sold for $605,000 at a 4.96% yield
Agents: Mustan Bagasra & Matt Lee

Wairau Valley

Updated: 234 Archers Rd, unit A:
Features: vacant 1205m² light industrial unit – warehouse 817.6m², showroom 387.4m² (size originally stated as 1146m²), 13 parking spaces
Outcome: passed in at $2.85 million at auction in April, sold in September for $2.95 million + gst
Agents: Ranjan Unka & Matt Mimmack

North-west

Glen Eden

1 Glendale Rd:
Features: 1511m² corner site with town centre zoning (27m height limit), 680m² retail/showroom building built in 2004, Cash Converters occupies 370m² on 6-year lease to October 2022 with 2 6-year rights of renewal; a Salvation Army family store occupies 309m² on lease to May 2019, with 2 rights of renewals of 2.5 years; 33 parking spaces
Rent: $251,224/year net + gst
Outcome: sold for $3.325 million at a 7.55% yield
Agents: Mike Adams, Jean-Paul Smit & Alan Haydock

New Lynn

2 Hutchinson Ave:
Features: 556m² corner site zoned terrace housing & apartment building, 203m² building occupied by longstanding retail & café tenant
Rent: new lease set at about $80,000/year net
Outcome: passed in at $1.25 million
Agents: Mike Adams & Phil Haydock

South

East Tamaki

21B Andromeda Crescent:
Features: 212m² industrial unit in block of 7, 3-year lease to Mahe Glasstech Ltd
from July 2016 – 104m² warehouse, 73m² office/showroom, 30m² mezzanine, 8m² deck
Rent: $23,000/year net + gst
Outcome: sold for $501,500 at a 4.59% yield
Agent: Nelson Raines

Manurewa

18 Mahia Rd:
Features: 2448m² corner site zoned light industrial, 1606m² building – warehouse 972.6m², office & amenities 385.7m², low-stud workshop 247.9m², seismic ratings 90% for warehouse, 70% for office
Rent: $168,603/year net + gst from longstanding tenant
Outcome: no bid
Agents: Peter Migounoff & Rod Grieve

Papatoetoe

70 St George St:
Features: 326m² site zoned town centre, single-level 120m² retail premises occupied by superette on 2-year lease from November 2016, 4 4-year rights of renewal
Rent: $30,100/year net + gst
Outcome: sold for $655,000 at a 4.6% yield
Agents: Ash Jogia, John Bolton & Dave Stanley

Attribution: Agency release.

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4 sales, 7 leases

Industrial & commercial property specialist Commercial Realty Ltd has reported deals completed over $50,000 from May to July. Some had confidential pricing which I’ve mentioned, but I’ve omitted those with so little detail as to make this report meaningless.

Below are 4 sales & 7 leases signed around the Auckland region.

Sales

CBD

Lorne St

8 Lorne St, basement:
Features: 275m², secondary retail
Outcome: sold for $1.475 million
Agent: Reid McGowan

North-west

New Lynn

72 Delta Avenue:
Features: 1200m² standalone building
Outcome: sold to a dance studio for $1.875 million + gst
Agents: Mike Edward & Daniel Speck

South

East Tamaki

15 Bishop Lenihan Place, unit 22:
Features: 102m², live/work unit, 2 stacked parking spaces
Outcome: sold for $477,725
Agents: David Turner & Reid McGowan

Papatoetoe

260 Puhinui Rd:
Features: 8051m² site, 3664m² building
Outcome: sale & leaseback, price confidential
Agents: Mike Edward, Mark Bramwell & Reid McGowan

Leases

Isthmus east

Penrose

Part 323 Church St:
Features: 600m² car yard
Rent: leased to a car dealership for $75,000/year net + gst
Agent: Willie Fernandes

100 Gavin St:
Features: 3171m² warehouse, 1800m² yard, leased to an international tenant
Rent: $455,242/year net + gst
Agent: Danny Guise

22 Industry Rd, unit 2:
Outcome: sold to an investor for $875,000
Agent: Kerry McGuffog

Isthmus west

Avondale

12A Saunders Place:
Features: 698m² warehouse & office
Rent: leased for $93,000/year on a long term to a local Rosebank Rd business at the full asking rental
Agents: Tom Cooper & Mark Bramwell

South

Drury

4 Creek St:
Features: 2000m² yard, 700m² warehouse
Rent: leased for $105,000/year net + gst
Agents: Mark Bramwell & Brad Rathbun

Mangere

50 Andrew Baxter Drive:
Features: 1800m² site, 1080m² warehouse & office
Rent: leased for $175,000/year net + gst
Agents: Danny Guise & Mike Edward

Manurewa

Part 239 Browns Rd:
Features: 1200m² warehouse
Rent: leased to an international tenant for $120,000/year net + gst
Agent: Brad Rathbun

Attribution: Agency release.

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Update 2 – post-auction sale of Gull station; Long auction takes K Rd corner property’s value to 4.1% yield

Published 17 May 2018, updated 24 May 2018 and again on 28 June 2018:
Update 2, 28 June: The Gull service station in an automotive-based complex next to Kingsland Village has been sold, a month after being passed in on the sole bid from the vendor at auction.

First update, 24 May: The second of 2 units in the Sainsbury retail centre in St Lukes has been sold post-auction, after not attracting a bid on the day.

Back to all those bids…

It took 40 minutes and 377 bids for the first property to be sold yesterday at Bayleys’ third Total Property auction for the year.

That property, a small unusually designed bank branch at the corner of Karangahape Rd & Upper Queen St, at the top of Auckland’s cbd (and foot of the picture), was eventually bought by a neighbour after competition initially from 4 other bidders.

The final battle between 2 K Rd owners took the price in small steps from $3 million, when it went on the market, up another $1 million. The sale was at a 4.12% yield on current rent.

In contrast, and in keeping with the way many commercial auctions have gone over the last year, the next property on the list, a service station, attracted no bid and was passed in on the vendor’s indicative bid.

5 of the 9 properties auctioned were sold under the hammer and another was sold prior.

While auctioneers have struggled to attract bidders on many properties in recent times, where there is interest yields have remained strong.

At this auction, the sub-3% yield on a Meadowbank retail property may reflect development potential more than existing quality, and a bank branch at Kaikohe in Northland sold for a yield just over 7.5%.

But retail & hospitality offerings remain attractive – 4.7% on a St Lukes café, 5.4% on a Rosedale café.

CBD

O’Connell St

12-14 O’Connell St, units A, B & C:
Features: 3 retail units of 63.43m², 56.25m² & 238.57m² (total 358.25m²), occupied by a café, a florist & the best chocolate shop in New Zealand, Bohemein
Rent: $333,490.11/year net + gst
Outcome: withdrawn from auction
Agents: Nicolas Ching, Beterly Pan & James Chan

Queen St

Mid-City arcade, 239 Queen St, unit 2E:
Features: vacant 80m² retail unit
Outcome: auction postponed
Agent: Oscar Kuang

Uptown

122-130 Karangahape Rd:
Features: 357.41m² floor area on Upper Queen St corner, seismic rating 100% of new building standard, ANZ Bank a longstanding tenant, 6 parking spaces
Rent: $164,958/year net + gst
Outcome: sold for $4.005 million at a 4.12% yield
Agents: Matt Lee, James Chan & Quinn Ngo

Isthmus east

Meadowbank

2-4 Dorchester St:
Features: 339m² site, 190m² floor area, 2 refurbished retail tenancies, A grade seismic rating, neighbourhood centre zoning gives development upside
Rent: $64,496/year net + gst from 2 8-year leases starting February 2016
Outcome: sold for $2.25 million at a 2.87% yield
Agents: James Were & Scott Kirk

Isthmus west

Kingsland

Updated: 388 New North Rd:
Features: 288.5m² shop, 636.6m² canopy, unit title share of 5385m², Gull service station next to Kingsland Village, in automotive-based complex
Rent: Gull Petroleum (NZ) Ltd on 15-year lease from August 1999, renewals to 2039, 2-year CPI-based reviews, current rent $283,197.51/year net + gst
Outcome: passed in on sole bid from vendor at $4.8 million, pricing the property on a 5.9% yield; sold post-auction for $4.7 million, at an even 6% yield
Agents: Stuart Bode & Mike Bradshaw

Mt Albert

Sainsbury retail centre in St Lukes business park, 55 Sainsbury Rd, unit 1:
Features: 84m² floor area, 90m² outdoor floor area, café on new 5-year lease
Rent: $52,000/year net + gst
Outcome: sold for $1.114 million at a 4.67% yield
Agents: Phil Haydock & Ken Hu

Updated: Sainsbury retail centre in St Lukes business park, 55 Sainsbury Rd, unit 7:
Features: 104m² floor area, foodmarket on 5-year lease from June 2017, 2 5-year rights of renewal
Rent: $45,000/year net + gst + outgoings
Outcome: no bid; sold post-auction for $715,000 at a 6.29% yield
Agents: James Darji, Amy Weng, Nicolas Ching & Phil Haydock

North

Kaikohe

109-111 Broadway:
Features: 459m² site, 230m² floor area, ASB Bank Ltd on 6-year lease from September 2016, one 6-year right of renewal, seismic rating 67% of new building standard, parking at rear
Rent: $33,000/year net + gst
Outcome: sold for $437,000 at a 7.55% yield
Agents: Nicolas Ching, James Chan & Neil Campbell

North-east

Rosedale

4 Arrenway Drive, unit G:
Features: 82m² Korean restaurant, 2 dedicated parking spaces + common parking
Rent: $36,750/year net + gst + outgoings, 4-year lease from April 2017, 3 4-year rights of renewal
Outcome: no bid
Agents: Mustan Bagasra & Terry Kim

Rosedale retail centre, 96 Rosedale Rd, unit 15:
Features: restaurant with 144m² retail floor area, 85m² covered terrace
Rent: $89,500/year net + gst + outgoings from 8-year lease
Outcome: sold prior for $1.65 million at a 5.4% yield
Agents: Eddie Zhong & Steven Liu

North-west

New Lynn

3026 Great North Rd:
Features: 956m² car sales yard, dual frontage through to Veronica St
Rent: $48,000/year net + gst
Outcome: passed in at $1.15 million
Agents: Kate Kirby & Stephen Scott

South

Papatoetoe

45 St George St:
Features: 228m² site, 200m² floor area, in heart of Old Papatoetoe Mall/New World redevelopment
Rent: $44,869/year net + gst from 2 tenants on renewed leases from 1 April
Outcome: sold for $745,000 at a 6% yield
Agents: Quinn Ngo, Matt Lee & Janak Darji

Attribution: Auction.

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Allenby Park sale among 4 South Auckland deals

The 68-unit Allenby Park hotel complex in Papatoetoe (pictured above) has been sold as a freehold going concern, one of 4 recent commercial sales in South Auckland by Bayleys. The complex has drive-around access and has recently been upgraded throughout, including a new roof.

Bayleys’ business, tourism & leisure team leader, Paul Dixon, said the new owner had indicated an intention to continue operating the accommodation business although longer term the 8345m² site had potential for further development as site coverage is only 42%.

A Takanini site with a small workshop on it has been sold at auction by Bayleys after competition between 7 bidders lifted the price from a starting offer of $600,000 to an eventual sale to a local owner-occupier, after 84 bids, at $941,000.

South

Otahuhu

7 Piki Thompson Way:
Features: 2064m² in 3 titles zoned terrace housing & apartments, 608m² commercial building & surrounding parking; leased to Maori services provider Te Roopu Taurima o Manukau until July 2021
Rent: $65,922 /year net + gst, annual CPI increases
Outcome: sold for $1.7 million at land value of $823/m² & a 3.87% yield
Agent: Dave Stanley

Papakura

5 Vernon St:
Features: 1012m² level site zoned mixed use, 116m² 1950s villa; consented for 3 industrial units
Outcome: sold vacant for $760,000 at $751/m²
Agents: Dave Stanley, Peter Migounoff & Piyush Kumar

Papatoetoe

477 Great South Rd:
Features: 8345m² site zoned mixed housing suburban, recently upgraded 68-unit Allenby Park hotel complex, in-house restaurant, bar & standalone 2-level conference facility; potential for further site development as building coverage only about 3500m²
Outcome: sold as a freehold going concern for $16 million
Agents: Paul Dixon, Janak Darji & Tony Chaudhary

Takanini

22 Oakleigh Avenue, Takanini.

22 Oakleigh Avenue:
Features: 1159m² security-fenced site zoned light industry, 184m² workshop built in 2000
Rent: estimate of $40-48,000/year net + gst
Outcome: sold with vacant possession for $941,000
Agents: Rod Grieve & Peter Migounoff

Attribution: Agency release.

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Mix of offices & one industrial sell in South Auckland

Bayleys agents in South Auckland have sold 3 office properties and a vacant industrial site.

South

Manukau

5A Ryan Place:
Features: refurbished 1500m² 2-level office unit, 24 secure parking spaces, new 3-year lease
Outcome: sold for $2.64 million at a 7.59% yield
Rent: $200,400/year net + gst, 2.5% annual rental increases
Agents: Damien Bullick & Alan Haydock

Papakura

37 East St:
Features: 651m² cbd site, 2 industrial buildings with a total floor area of 390m², secure rear yard & offstreet parking
Outcome: sold with vacant possession for $770,000  
Agents: Peter Migounoff & Piyush Kumar

Papatoetoe

129 Kolmar Rd:
Features: 809m² site zoned town centre, 763m² 2-level modern office building; 2 occupants, with purchaser having a replacement tenant for an expiring lease
Rent: $96,000/year net + gst
Outcome: sold for $1.55 million at a 6.19% yield
Agents: John Bolton, Roy Rudolph & Katie Wu

Takanini

4 Graham St, unit 4:
Features: 240m² first-floor office premises, 5 parking spaces, one year to run on current lease with renewal rights
Rent: $30,000/year net + gst
Outcome: sold for $390,000 at a 7.69% yield
Agents: Peter Migounoff & Piyush Kumar

Attribution: Agency release.

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3 southern commercial buildings sold

Bayleys agents have completed 3 commercial building sales in 3 southern suburbs – Otahuhu, Otara & Papatoetoe (building pictured).

Isthmus east

Otahuhu

79 Atkinson Avenue:
Features: Under-developed 932m² town centre-zoned site, 263m² single-level commercial premises originally constructed in the 1970s as an office building, currently occupied by Vietnamese restaurant on 4-year lease until October 2018 with one 4-year right of renewal, 16 parking spaces
Outcome: sold for $1,500,001 at a 3.01% yield
Rent: $46,500/year net + gst
Agents: Tony Chaudhary, Janak Darji & Amy Weng

South

Otara

52 Lovegrove Crescent:
Features: 6070m² site, 2 office buildings with interconnecting ground levels, totalling 2781m²; Ministry of Social Welfare in occupation since 2006, current leases running until mid-2022 plus 2 3-year rights of renewal; 90 parking spaces, 375m² of vacant basement office space
Rent: $350,132/year net + gst
Outcome: sold for $3.875 million at a 9.03% yield
Agents: Sunil Bhana, James Hill, Tony Chaudhary & Janak Darji

Papatoetoe

196 Great South Rd (pictured):
Features: 1067m² site with town centre zoning, 746m² 2-level commercial building, occupied by ANZ since the 1990s, current lease running until April 2020 plus 2 3-year rights of renewal, 17 parking spaces at rear
Rent:  $140,483/year net + gst
Outcome: sold for $2.8 million at a 5.02% yield
Agents: Janak Darji, Tony Chuaudhary & Amy Weng

Attribution: Agency release.

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6 intensive homes sell at auction but “no bids” raise questions

6 of the 10 intensive homes auctioned at Barfoot & Thompson’s city office yesterday were sold under the hammer.

Out of a total residential offering of 20 properties at 2 auctions, 8 were sold, so a strong outcome on intensive dwellings, weaker on standalone homes.

But the more interesting factor arose at the end of the second auction. Of the 7 properties, 2 had sold just short of $1.5 million, 2 had sold below $1 million, one was passed in, and remaining were a cross-leased townhouse at Bucklands Beach and a modest 3-bedroom standalone in Glen Eden. Neither attracted a bid, with the auctioneer closing after seeking a $550,000 start for the Glen Eden home.

In a short few months, the residential market has gone from overpricing enthusiasm to underpricing by neglect, the inability to finance at lower levels or exclusion of likely bidders by regulation.

CBD

Victoria Quarter

The Galleries, 23 Graham St, unit 26:
Features: 200m², 3 bedrooms, 3 bathrooms, study, balcony, 2 parking spaces, storage locker
Outcome: no bid
Agents: Louise Allan & Alex Allan

Isthmus east

Ellerslie

3 Ellerslie Park Rd, flats 2 & 3:
Features: 2 2-bedroom flats, parking space each
Outcome: sold for $1.16 million
Agents: Barry Saxon

Epsom

26 Orakau Avenue, unit 2:
Features: cross-lease, 1/3 share in 839m², 2-bedroom unit, garage
Outcome: sold for $951,000
Agent: Dee Brennan

Greenlane

24 Puriri Avenue, unit 4:
Features: 88m², 2-bedroom unit, internal-access garage
Outcome: sold for $860,000
Agents: Janice Hamilton-Cox & Philip Cox

Mission Bay

21A Comins Crescent:
Features: 3-bedroom townhouse, 2 bathrooms, courtyard, terrace, carport
Outcome: no bid
Agents: Alex Baker

Remuera

117 Grand Drive, unit 2:
Features: refurbished 3-bedroom townhouse, 2 bathrooms, 2 carport spaces, pool, bordering Waiatarua Reserve
Outcome: sold for $1.05 million
Agents: Stephen Rendell

Royal Oak

13C Raurenga Avenue:
Features: 419m² section, 4-bedroom townhouse, 3 bathrooms, double internal-access garage
Outcome: sold for $1.461 million
Agents: Frances Li & Ian Thornhill

North-east

Takapuna

9B Puriri St:
Features: cross-lease, half share in 1012m², 3 bedrooms, garage
Outcome: sold for $875,000
Agents: Will Gluestein

South

Bucklands Beach

119 Bucklands Beach Rd, unit 1:
Features: cross-lease, 1/5 share in 1618m², 4-bedroom townhouse, 2 bathrooms, internal-access garage
Outcome: no bid
Agents: Frances Li & Raymond Chan

Papatoetoe

81A Huia Rd, unit 1:
Features: 69m², 2-bedroom unit, tandem carport
Income assessment: $440/week current
Outcome: no bid
Agents: Neno Radinovich

Attribution: Auctions.

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Auction raises more questions than bidders’ hands

Barfoot & Thompson’s apartments auction today raised more questions than bidders’ hands.

In a sparsely population city auctionroom, the 4 properties on offer were a cbd apartment, a cross-lease in Ellerslie, a unit in Papatoetoe where the unit title wasn’t yet issued, and a Glen Innes house on a section – like thousands around Auckland now – with subdivision potential following rezoning.

The Connaught apartment had a bidder, but the margin between them and the vendor was about $200,000, setting the vendor’s target about $20,000 above the price achieved for a larger unit last July, when the market was far more active.

Excluding parking & balcony, the vendor would have been seeking about $14,000/m² internal, compared to a bid set at about $9000/m².

New apartment developments’ prices have moved well above the $10,000/m² that was a benchmark 2 years ago – construction costs have helped push some about $15,000/m² – but for older buildings those sorts of returns raise a question of how much of the windfall arising from price rises over the last 4 years is acceptable or readily achievable.

The Ellerslie cross-lease sold under the hammer after the vendor edged down but the other 2 properties attracted no bid.

A unit where the unit paperwork hadn’t been completed presented a risk most wouldn’t take in a declining market.

And, while the far eastern Tamaki suburbs on the isthmus started to attract more interest late last year, the unitary plan has opened thousands of residential properties up for potential subdivision, negating windfall opportunities and (in theory at least) opening suburbia up to cheaper new housing.

The mindset of cheaper new suburban development hasn’t set in yet, and may need a council push in terms of infrastructure provision & pricing, but the number of sections starting to come to the market indicates enough willingness to sell, and for intensification to gradually get underway.

CBD

Learning Quarter

The Connaught, 14 Waterloo Quadrant, unit 5I:
Features: 50m² including balcony, one-bedroom apartment, parking space
Outgoings: body corp levy $4455/year
Income assessment: $400/week
Outcome: passed in at $450,000
Agent: Bernard Scahill

Isthmus east

Ellerslie

141 Celtic Crescent, unit 5:
Features: cross-lease, 1/5 share in 1760m², 3-bedrooms, 2 bathrooms, internal-access garage
Outcome: sold for $800,000
Agent: Paul Studman

Glen Innes

16 Epping St:
Features: 688m² site in terrace housing & apartments zone under the unitary plan, 4 bedrooms
Outcome: no bid
Agent: Jack Hu

South

Papatoetoe

81A Huia Rd, unit 2:
Features: 69m² 3-bedroom unit, 25m² sleepout with own bathroom, double carport – unit title yet to issue and body corporate levy yet to be determined
Outcome: no bid
Agent: Neno Radinovich

Attribution: Auction.

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