Commercial auction year ends on a high
The sale of a Newmarket property for more than $10 million and several other transactions in excess of $5 million were features of Bayleys’ final commercial and industrial auctions for 2021.
Three-quarters of the properties that went under the hammer in the agency’s Auckland Total Property auction in December sold at or after the auction, with the highlight being the $10.5 million sale of a 1411sq m site with development potential at 25-27 Crowhurst St, Newmarket.
The property encompassed two separate, standalone commercial buildings totalling 1336sq m, 75 per cent leased and returning annual net rental of $315,375.
James Chan, Bayleys’ national director Asian markets, who marketed the property with international sales colleagues Owen Ding and Quinn Ngo, said the property’s real value lay in its underlying Metropolitan zoning with a height overlay of 72.5m, offering significant future commercial and/or residential development potential. Chan said the Hong Kong-based purchaser is likely to retain the existing buildings in the short to medium term while add-value and longer-term development options are considered.
The Crowhurst St transaction followed the $8.8 million November auction of another site with big development potential by Chan and Quinn Ngo. The property at 260 Apirana Ave, Glen Innes, has 2416sq m of Town Centrezoned land with a height allowance of 32.5sq m. A partly occupied 2500sq m building, originally built as a supermarket but subsequently subdivided into multiple tenancies, is generating $194,500 of holding income.
The property is in the heart of Glen Innes community shopping centre, opposite the train station, an area where Auckland Council is proposing a significant investment in the surrounding community facilities and infrastructure as part of the Tamaki regeneration project.
Chan has undertaken hundreds of auction campaigns for Bayleys and while he says they have traditionally been used for generally marketing commercial and industrial properties valued at under $5 million, an increasing number of larger properties are also now going under the hammer.
Other commercial and industrial properties sold by Bayleys for more than $5 million by auction late last year included:
3 Owens Place, Mt Maunganui: Three buildings totalling 1319sq m on a
3544sq m corner site with frontage to SH2 in a bulk retail hub sold for $7,050,000 at a 3.91 per cent yield by Brendon, Lynn and Ryan Bradley, Bayleys Tauranga. Positioned opposite the Bayfair Shopping Centre, with anchor national tenants Animates and Guthrie Bowron.
39 Rewi Street, Te Awamutu: A 2313sq m neighbourhood retail centre on a 4504sq m site sold for $6,415,000 by Willem Brown, Bayleys Hamilton. Two established tenancies to Fresh Choice and Bottle-O are returning $397,752 net pa with a Bargain Chemist soon to occupy a third tenancy.
194-198 Glenda Drive, Frankton, Queenstown: 725sq m industrial premises on a 2000sq m site in two titles with 17 carparks sold for $5,520,000 at a 3.99 per cent yield by Chris Campbell, Bayleys Queenstown. Two trades-based tenants occupy the premises.