A mixed-use Auckland office and warehouse unit - complete with a chic two-bedroom apartment offering the ultimate example of a work-from-home lifestyle - has been placed on the market for sale.
Commonly known as ‘live and work’ units, premises such as 5D Dallan Place in the Auckland suburb of Albany are essentially combined apartment/workshop/office where tenants and owner-occupiers can live on the first floor above their business – with no yard space and no commute.
Barfoot & Thompson Commercial North Shore salesperson Elaine Tutty says live and work units are a very specific and popular property type - offering excellent work from home opportunities for small businesses, or equally a high investment returns for investors.
“Live and work units such as those in Dallan Place can give a better return than residential rentals, as commercial tenants also pay outgoings. The properties maintain high rental rates return in tough economic times, and they sell quickly,” Ms Tutty said.
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“They provide investors a foot in both the commercial and residential markets, splitting the risk and maximising the returns. There is a shortage of this property type on the North Shore, and they are always in high demand. The property at 5D Dallan Place is an exceptional example as it offers an ideal location, a superb apartment, and much larger than usual commercial premises.”
The premises consists of a 175.3 square metre, two-storey building, situated on freehold land classified General Business under the Auckland Council Unitary Plan.
The General Business Zone provides for business activities from light industrial to limited office, large format retail and trade suppliers. The land use designation is located primarily in areas close to classifications of Business – City Centre Zone, Business – Metropolitan Centre Zone, and Business – Town Centre Zone, or within identified growth corridors where there is good transport access and exposure to customers. This zoning allows more options and flexibility than most.
The ground level commercial component of the Dallan Place unit is the perfect size and configuration for small businesses. It comprises an excellent office and warehouse area. The warehouse is clear span and is accessed through a high-stud electric roller door.
The building has a stud height of 4.5 metres at the door, while the balance of the warehouse is a mixture of high and low stud heights. Adjacent to the warehouse is a sunny, professional office area with direct warehouse access and excellent staff amenities.
Meanwhile, the upper level comprises a modern, attractive residential apartment complete with its own entrance. The stairway leads up to an open plan living area and two double bedrooms. There is a private balcony off the lounge which captures the morning sun beautifully for breakfasts on the deck before travelling downstairs to begin work.
The unit sits at the end of a block of just four similar mixed-use units in a quiet cul-de-sac.
The freehold unit titled property at 5D Dallan Place is being marketed for sale by auction on July 22 through Barfoot & Thompson Commercial, North Shore. Ms Tutty said the north-east facing property would be attractive to both owner-occupiers seeking a work-from-home lifestyle, or to investors looking for a passive income.
“The property offers a multitude of leasing options as the unit’s size and well configured commercial component sets it apart. It is a very real opportunity to secure a sought-after property with incredible flexibility and a myriad of options in a market currently starved of good investments,” Ms Tutty said.
“Under its current configuration, the Dallan Place unit is ideal for a trades-based occupier whose services or products require a clean, modern workspace which may further benefit from 4.5 metre roller door access for trucks and vans.”
Ms Tutty said the unit was also ideally set up for two separate rental streams.
“It is entirely possible to rent the first floor to a residential tenant whilst operating a business from the ground floor or vice-versa. Many see it as the perfect solution,” she said.
Comparable rental evidence for other similar units within the Albany/Rosedale precinct indicates that if the tenancies were split the upper floor could easily rent at $550 per week with the ground floor office/warehouse capable of showing a net return of $28,000 pa. This is an excellent return on investment which would be difficult to achieve in any other property type.
“For out-of-town owner-occupiers or retirees, the property offers a ‘lock up and leave’ lifestyle with the added benefit of income from the commercial premises. With Massey University’s Albany campus some two kilometres away, the Dallan Place unit would make an excellent investment possibility for parents of students attending either of these establishments,” she said.
“Live and work units are part of a general trend toward more mixed-use developments, and if they are done well, as is the case with 5D Dallan Place, they are a valuable, flexible addition to the urban environment - offering a low-risk way to establish a business, or an excellent proposition for investors allowing them a foot in both the commercial and residential markets."
