Apartment portfolio up for grabs
A portfolio of nine tenanted apartments in a boutique residential complex has been placed on the market for sale.
The apartments are located on the same floor within the 38-unit SOMA Apartments development at 12 Mackelvie Street in Grey Lynn.
The one-bedroom units for sale range in size from 69.6 square metres to 90.9 square metres – including deck areas – and each have what is known as a ‘flexi’ room which can be used as a work-from-home office, study, media room, or second bedroom. The units occupy all of level three in the Soma Apartments complex.
The nine-apartment portfolio is now being marketed for sale by way of deadline private treaty through Bayleys Auckland, with offers closing on September 10.
Bayleys agents Stephen Scott and Kate Kirby said the portfolio offered an array of options for potential buyers.
“The nine units could be purchased and operated as one single passive investment portfolio as they currently are. Or, being individual freehold titles, any number of apartments could be sold off from the portfolio independently on a drip-feed basis as part of a longer-term strategy,” Scott said.
All nine apartments are rented for between $650 to $790 per week. Four of the units come with single car parking spaces in the basement, and some of the units have allocated secure storage space. Combined, the nine residential dwellings generate a gross rental income of $341,640 per annum.
The nine units are subject to an annual combined body corporate levy of $28,635 administered by Barfoot & Thompson, and are managed under an existing residential management agreement running through to 2021 – with the rate fixed at five percent of rental.
An independent property valuation estimates the portfolio of nine apartments to be worth $7.915 million. Scott said that at that pricing level, and on current rental income, the nine apartments delivered a gross rental yield of 4.3 percent. “This yield figure could be enhanced in the medium term through the introduction of higher weekly letting rates as and when new tenancies arise, or by any new owner taking on the management of the properties when the current management contract expires.”