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 1,411sqm site with development potential at 25-27 Crowhurst St, Newmarket.
The property encompassed two separate, standalone commercial buildings totalling 1,336sqm, 75 percent leased and returning annual net annual $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.
National retailer Bedpost NZ has more than six years to run on its lease of showroom premises on the Crowhurst St frontage. A four-storey office building located at the rear of the oblong-shaped site, with secondary access off Melrose St, is partly occupied by education providers Wentworth Computer Science College and Edu Experts on shorter term leases.
“The property’s central location, proximity to the Westfield shopping centre and the fact that it’s in the double Grammar school zone means at some stage it would be well suited to residential development perhaps incorporating street level retail premises,” said Chan.
The property is the highest value, single auction sale James Chan has been involved in during his 32 years with Bayleys, although he did sell an auction portfolio of 22 strata titled shops in the Lincoln North shopping centre in Henderson individually in one day in 2009 at a total value of $35 million.
The Crowhurst St transaction followed the $8.8 million sale of another site with big development potential auctioned in November by Chan and Quinn Ngo. The property at 260 Apirana Ave, Glen Innes has 2,416sqm of Town Centre zoned land, with a height allowance of 32.5sqm. A partly occupied 2,500sqm 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, in 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.
“Well located properties in the higher value price range with strong tenant covenants or which have significant add value or development potential, like these two offerings, are generating good competition at auction.
“From a vendor’s perspective, auctions are a well proven method for flushing out buyers and ensuring they get the best possible market price. Buyers also like the transparency of auctions which means they can see what other parties are offering.”
Other commercial and industrial properties sold by Bayleys for more than $5 million by auction late last year included:
**3 Owens Place, Mount Maunganui: ** Three buildings totalling 1,319sqm on a 3,544sqm corner site with frontage to State Highway 2 in a bulk retail hub sold for $7,050,000 at a 3.91% 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 2,313sqm neighbourhood retail centre on a 4,504sqm 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: 725sqm industrial premises on a 2,000sqm site in two titles with 17 car parks sold for $5,520,000 at a 3.99% yield by Chris Campbell, Bayleys Queenstown. Two trades-based tenants occupy the premises.
Bayleys is currently sourcing listings for its first Total Property portfolio for 2022 which closes off on Friday, January 28.