Diversified income in Glendowie
A multi-level commercial and residential building in a prominent block of shops in Glendowie offers buyers the opportunity to acquire a prime asset that has undergone significant improvements and offers long-term upside.
237 West Tamaki Rd, Glendowie, is a three-storey property with 435sq m of total net lettable area zoned Business–Neighbourhood Centre under the Auckland Unitary Plan.
The ground floor is home to a commercial tenancy with Wai-O-Taiki Real Estate occupying the 53sq m space on a lease that provides $33,000 plus GST in net annual rental income.
There’s also 85sq m of vacant workshop and shared amenity space that could be leased for approximately $14,800 plus GST a year on current market estimates.
A 4.5-bedroom apartment with four bathrooms spans the first and second floors and could be leased for approximately $52,000 a year including GST based on current market estimates or serve as a residence for the new owner.
The property offers separate access for the retail tenancy, workshop, and apartment, as well as four covered private carparks with further off-street parking available.
Colliers brokers Logan Roach and Gareth Fraser have been appointed to market the property for sale via auction to be held at Colliers Auckland and online via Auctions Live at 11am on Wednesday 15 June, unless sold prior.
Originally constructed in the 1960s, the property forms part of a suburban retail strip situated on the bustling street of West Tamaki Rd.
Wai-O-Taiki Real Estate’s two-year tenancy agreement runs until May 2023 with two further rights of renewal for two years each, leading to a final expiry in May 2027 with market rent reviews scheduled for 2023 and 2025.
Roach says the property is well-positioned in a popular location. “The property has been refurbished to an incredibly high standard and the works included alterations to the kitchen, toilets, external decking, roof, carpet, laundry, and offices, while the building was also reclad. The final Code Compliance Certificate was issued in July 2021,” Roach says.
“A passive investor will have the opportunity to boost their rental income through multiple streams by leasing the apartment and the ground-floor workshop, while the existing tenancy will produce future rental growth from an established occupant.
“Alternatively, the buyer may wish to occupy the apartment for their own accommodation, while enjoying the passive income on offer from the open-plan retail space and workshop downstairs.”
Fraser says the surrounding area provides a number of sought-after amenities.
“The suburb of Glendowie has seen a significant increase in residential values during the past few years with a number of properties in the wider area being redeveloped to provide higher-density housing,” Fraser says.
“West Tamaki Rd connects the surrounding suburbs of Glen Innes, Wai O Taiki Bay, Glendowie and St Heliers, while nearby schools include Sacred Heart College, Glendowie School and Glendowie College.
“Neighbouring suburb Glen Innes provides excellent access to public transport through the train and bus links, alongside a range of popular retail offerings.”