A multi-tenanted commercial premises occupying a high-profile corner in the affluent Auckland suburb of Ponsonby provides a multi-dimensional investment opportunity, Bayleys salespeople say.
The 582sqm (more or less) freehold site at 7 Rose Road, on the corner with Pollen Street, is in a valuable location, positioned to take advantage of significant pedestrian foot traffic between main arterials Ponsonby and Richmond Roads.
Bayleys Auckland City & Fringe associate director James Were says the property hits the trifecta for value-conscious investors in the current market, delivering an attractive mix of immediate income, value uplift and development potential.
“Prime assets in high-growth locations continue to perform well as investors search for opportunities that balance immediate reward and latent growth.
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“More challenging economic conditions have meant buyer groups are increasingly looking to proven income-producing properties for a source of value, with a long-term view to leverage strong development fundamentals as conditions improve.
“The preferable Business – Town Centre zoning provides for mixed-use intensification to 18m under a proposed Plan Change 78, allowing a new purchaser the opportunity to implement plans for redevelopment whilst leveraging the current income stream.”
Were is marketing the Rose Road property for sale with Bayleys colleagues Phil Haydock and Beterly Pan.
The premises is offered for sale by tender, closing at 4pm on Thursday, 11 May 2023 (unless sold prior).
Comprising 637sqm (more or less), including subterranean storage and car parking, the property features a net passing income of $277,435 pa plus GST, generated from 11 businesses, including a music school, professional service providers, retailers and an advertising billboard.
A 24sqm (more or less) office suite is vacant.
The property is formally consented as a four-storey commercial premises comprising 13 basement car parks and 1,497sq m (more or less) of retail, hospitality and office accommodation over three levels.
Bayleys Auckland City & Fringe associate director Phil Haydock says that amid softer cap rates, investors are choosing to focus on rental growth, with many looking for blue-chip properties with add-value potential as a future-proofing strategy and hedge against inflationary pressures.
“Extremely low vacancy rates for modern office accommodation in central-suburban locations further underpins interest here.
“At the same time, a strong and strengthening residential catchment is boosting local activity, supported by the imminent completion of Ockham Residential’s 101-apartment development, The
Greenhouse, located across the road, and Form’s neighbouring 57-unit Rose Road Apartments project.”
The sale of 7 Rose Road follows another high-profile transaction on the street, recently completed by Bayleys Auckland City & Fringe colleagues Alan Haydock and Damien Bullick.
Neighbouring property, 9 Rose Road was sold to an investor for $8.1 million in March, following a successful Total Property marketing campaign which generated strong interest amongst various buyer groups.
Bayleys Northwest commercial broker Beterly Pan says the transaction is evidence of extremely attractive local fundamentals which continue to set Ponsonby’s mixed-use precinct apart as a key investment area.
“Benefitting from convenient access to transport links and amenities, including a Countdown Supermarket across the road, nearby Ponsonby Central and the newly completed Silky Otter Cinemas, the location offers attractive flexibility for a new owner.
“They may choose to leverage the desirable split-risk nature of the rent roll, preferable status as a long-term passive hold, or unlock the untapped development potential of a site in a first-rate growth location – whichever way it’s assessed; the property is a true A-grade asset.”
- Article supplied by Bayleys
