Split-risk strata investment in central city
The first floor of an Auckland CBD property is for sale with 23 secure inner-city car parks.
Located at 51F Hobson St, the strata-titled freehold property offers a split-risk income stream from two fully leased tenancies.
Colliers International is marketing the 1054sq m unit for sale by deadline private treaty closing at 4pm on November 15, unless it sells earlier.
Returning $251,942 plus GST in net annual rent, the property comprises the upper level of a fully occupied two-level commercial building with a mix of long-standing retail tenants.
It is divided into two tenancies leased to an internet cafe and a backpackers’ hostel.
Tony Allsop of Colliers says the property is only 250m from Queen St, and a short walk from the future Aotea Train Station.
Broker Simon Child says Unit F1 comprises 341sq m to the west of the first floor, while Unit F2 comprises 713sq m to the west.
“The smaller tenancy is occupied by an internet cafe, Megaweb Gaming, which is signed to a two-year lease returning $81,840 in annual rent.
“The lease has one remaining right of renewal of two years, with a market rental review on renewal.
The larger tenancy is occupied by Metro Adventurer Backpackers, is signed to a five-year lease returning $105,000 in annual rent.
“There are four rights of renewal of five years each, extending the final expiry date to 2041. Market rental reviews take place every four years.”
Child says the secure basement car parks are on accessory unit titles.
“Eleven car parks are on individual licences with minimum lease terms of three months, while a further 10 car parks are on long-term lease to the neighbouring Denny’s restaurant. The remaining two car parks are included in the backpackers’ lease.”
Altogether, the car parks return $65,102 in annual rent, with a mix of fixed and inflation-indexed rental reviews.
Broker Adam White says the building was designed and constructed in about 1978.
“The two-storey building is 9m in height from the ground level and includes a basement level car park. It is built primarily of concrete columns with a mix of concrete and timber framed walls and a light steel roof on a timber and steel frame.”