Archive | High St

Self-drive, the catalyst for monumental transformation

I read a US newsletter at the weekend that looked at change resulting from self-driving electric cars, but not just about the vehicles themselves. In this commentary, I take the possibilities further.

My conclusion: Change is not going to happen overnight, but it will be rapid, it will change how you regard your personal convenience and it will wring fundamental changes in property use, and therefore in property ownership, tenancy, value, design.

While you work through the questions & issues below, keep in mind that common use of land-based self-driving electric vehicles might become historic almost before it becomes common.

First, the questions:

Will you own a car – or, in families, multiple cars?

Will you expect to drive to work, as you do now?

Where will you park?

Who will provide that parking?

How do you shop? Mostly, weekly at the supermarket?

Do you use your car for lazy storage?

Do you use storage, music up loud, door-to-door as your excuses for an aversion to public transport?

How might pricing of vehicle ownership, journeys & parking change, and how might public transport be transformed?

Why own for minimal use when you can summons a vehicle at will, to take you door-to-door if necessary?

Now go through some answers:

While you might maintain that you need your car, most decisions of that nature have never really been yours to make.

The people who created mass production of cars were able to do so based on pricing low enough for widespread ownership. But think back to New Zealand’s brief era of carless days, when your vehicle had to be off the road for a stipulated one day/week, which roughly coincided with the start of mass importing of second-hand cars from Japan. Suddenly, from the inconvenience of having to travel by public transport occasionally, New Zealand was awash with cheap cars. You could go where you wanted, whenever you wanted.

Except, it’s reached the point that you can’t quite go whenever you want, because congestion has reached such a level that your journey becomes much slower. In response you look at passengers passing you in the bus lane and ponder joining them, or you drive to work in the dark.

In Auckland, if you cross the harbour bridge in peak traffic, you can see maybe 10 people near you – one per vehicle, all forced by congestion to travel slowly.

Parking made harder

The era of Uber is upon us – and the suggestion is that the Uber will lose its driver too. Pricing will dictate whether you travel as a solitary occupant in a car, or multiple. Either way, you will be taken from your door to your ultimate destination, or perhaps to a conveyance which carries more people.

Your own car will sit in its garage, and soon you will figure you don’t need it. One reason will be that you can order up a vehicle to suit your travel purpose – if you have more luggage, a bigger vehicle; travelling to the supermarket you don’t need space, but travelling home you do. Or perhaps you do all that shopping onscreen, without going anywhere.

You may see those possibilities as pure & unlikely conjecture until you consider the next point: the decision won’t be yours.

The next stage in your decision on how to get to a fixed place of work will occur when your employer, or the building owner, decides you don’t need a parking space because self-drives & public transport eliminate the need. Parked cars which do nothing but sit, waiting for you to come back in 8 hours, are a very large expense. The building owner will convert that parking space to other uses, especially if it becomes harder to fill every space.

Then, the road maintenance equation

It occurs to you that your journey could be much faster because there’s less competition on the road… Except, who pays for that road’s existence & maintenance? The motorist, the local council & the Government do – the motorist via taxes & levies, the council via rates & perhaps fuel taxes & targeted rates, the Government via those taxes & levies.

If there are fewer users, or use is far more efficient courtesy of the self-drive & decline of private ownership, government & council will pursue ways to lower their costs. And when they discover less road surface is needed, or they can get away with providing less, they will reduce maintenance. Much like Auckland Council’s decision not to mow the berm outside your house anymore, authorities will see the way clear to trim road surfaces based on saving money – 4 lanes back to 2 and, within suburbs, 2 back to a single lane.

This can happen because there will be fewer parked cars, and eventually none, the self-drives will be able to negotiate a single lane, and.. well, you’ll have even more berm to mow. The road surface that remains will be a coarser, cheaper product next time it’s laid, the maintained suburban road surface can be shrunk, and arterials – even motorways – probably can too.

You’ll turn your garage over to storage, or another bedroom, or a games room or home office.

The city end of the equation

Your decision on how to travel will be driven by external imperatives – council maintenance costs, shifts in tax spending, reduced provision of parking. Many of the parking lots around the inner city have existed because of property development downturns. The bungy site on Victoria St, right in the heart of the city, is vacant because the 1987 property & sharemarket crashes killed development plans, and more recent plans there have been more grandiose than real.

Feeding on to Victoria St East, the exit from the council’s Victoria St parking building is briefly on to High St – which is a popular nominee as one of the streets for a council project to trial more car-free areas. The council’s Downtown parking building has been considered for a number of years as a high value development proposition. Changes such as those would be dramatic, but no longer whimsical once self-drive vehicles start to appear.

Now to city occupants, and then to fringe centres

Offices & apartments without parking provided will become the norm, and those old basement parking floors will lose that value. Owners will look to new uses in old buildings and design parking out of new buildings. In the old buildings that will be an interesting exercise, because in many of them the ceilings will be too low. It will take ingenuity to find economic solutions.

For the individual, you’ve lost your parking floor in the office building, and all the other parking floors & parking buildings are being converted. You will be forced to seek other travel options – bus & train for distance or, as we’re starting to see, bike or scooter for shorter journeys.

But not everybody works in a central city office or shop. Suburban work centres are likely to face the same pressures for change, and industrial precincts might too. Think, as a property owner, what you can do with the space occupied by 30 or 50 employees’ cars. Tenants, especially in outlying areas, pay low rent for parking. Building them out will provide a better return.

Other consequences

If you accept that these kinds of change are not just on their way sometime, but more likely imminent – perhaps within a decade – you can turn your mind to other consequences.

Fewer cars, fewer motor mechanics, a whole sector of insurance becomes redundant. Car sale yards & car loans will be history. Tradies will become lords of the road, but their costs will also rise through higher contributions for upkeep. Delivery vans will have a bigger role.

Just the change from oil to electric is a revolution in itself. The oil industry has held sway for a century, but its decline will be swift if battery-operated travel can prove efficient, practical & cheap. That will ring in momentous change in international affairs, in economic relationships, in degrees of political power. Revolutions in self-drive & public transport will force local change.

Real or unreal? We don’t know yet. What we do know is that if change like this is catapaulted into our lives, it pays to start thinking of options early.

Attribution: Comment.

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Met & Eclipse apartments sell

An apartment in the newly remediated Met building between Queen & High Sts, in the centre of the cbd, and one in the Eclipse at the top of Vincent St sold at Bayleys’ residential auction yesterday. The Met unit went for $9420/m².

A Fiore 2 apartment and a cross-leased townhouse in St Heliers were passed in.

CBD

High St

The Met, 11 Durham St East, unit 2K:

Features: 69m², 2 bedrooms, high stud, new code compliance certificate just issued
Outgoings: rates $1963/year including gst; body corp levy $3550/year including gst
Outcome: sold for $650,000
Agents: Habeeb Urrahman & Chris Cairns

Uptown

Eclipse, 156 Vincent St, unit 12L:
Features: 2 bedrooms, balcony, parking space
Outgoings: rates $1827/year including gst; body corp levy $2999/year including gst
Outcome: sold for $625,000
Agents: Chris Bell & Lucy Piatov

Victoria Quarter

Fiore 2, 168 Hobson St, unit 801:
Features: 53m², one bedroom
Outgoings: rates $1498/year including gst; body corp levy $2999/year including gst
Outcome: passed in at $450,000, back on the market at $519,000
Agents: Chris Bell & Lucy Piatov

Isthmus east

St Heliers

16 Hampton Drive, unit A:
Features: cross-lease, ¼ share in 1239m², 3-bedroom townhouse, 2 bathrooms, double internal-access garage
Outcome: no bid
Agents: Blair Haddow & Jono King

Attribution: Auction.

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Private car’s days as symbol of power coming to an end

Never mind those petty rules of staying in your lane, indicating to change, obeying the traffic lights, feeding parking meters, accommodating your vehicle in an approved parking garage. No matter how beat up, or that it’s a polished company vehicle thrust into your care to proclaim your high status. Your car is a symbol of your independence & superiority.

Or, in downtown Auckland, it was.

In March, Auckland Council’s Auckland Development Office will file a report recommending trials to pedestrianise nominated streets in the central business district.

Queen St below Mayoral Drive is the primary candidate. High & Lorne Sts are among the smaller streets also likely to be high on the list.

Quay St would be reduced to 2 lanes, making it much more a pedestrian environment across from the wharves. Eastern suburbs traffic would be directed into the new traffic zones.

But before the trials, other preparation is needed. The development office wants traffic to be guided into zones, and not allowed to cross zones, and the office knows the pedestrians-only trials won’t work unless those preparations are in place.

Turning whole streets over to people on foot – plus bikes, prams, scooters, restricted visits by service vehicles and, in some streets, buses & trams – has been a venture too far for councillors for decades.

When Auckland City Council hired Ludo Campbell-Reid for the new role of urban design specialist in 2006 – coming from Tower Hamlets Council in London after earlier roles as chief executive of Urban Design London and in Cape Town – the notion of pedestrianising Queen St downhill from Mayoral Drive was getting, well, a foot into people’s thinking.

The city council turned down that idea, and also spurned pedestrianising a couple of blocks by a narrow margin. One change that did come, in 2007, was the introduction of bus lanes down Queen St. In addition, Lower Queen St between Customs & Quay Sts, and a couple of side streets – the lower end of Swanson St and Vulcan Lane – had their vehicle access ended.

But Mr Campbell-Reid switched from full-on pedestrianisation for major thoroughfares to the introduction of shared spaces, carried out in Elliot St, part of Fort St, and most recently in O’Connell St.

Meanwhile, gridlock took over, made worse over the last 2 years by the streetworks for the city rail link on Albert, Customs & Victoria Sts. People have watched – I think in awe, certainly not scowling – as they’ve waited at traffic lights and been able to observe the tunnelling below them.

And slowly the tide has turned. By the end of 2021, all going well, those tunnels are going to transport hundreds of passengers every 10 minutes or so into 3 central stations – people who have left the status symbol, the car, at home, or don’t even have one there.

The council development office, which Mr Campbell-Reid heads, can rely on those waves of passengers to lift support for locking cars out of the dominance they’ve long had in the city centre.

Those traffic trials are the biggest changes in the review of the city centre masterplan, approved in 2012, this time combined with the waterfront plan as the City Centre Masterplan 2040.

Proposed digital presentation of the new masterplan will allow for rolling reviews.

Auckland Council’s planning committee agreed unanimously yesterday to the development office’s proposals:

  • Digitisation in time to inform the council’s 2021-31 long-term plan
  • Rolling updates rather than 6-yearly updates
  • New content for public consultation & committee approval by July 2019
  • Maori outcomes
  • Grafton Gully boulevard
  • Access for everyone – the friendlier name for pedestrianisation
  • Trials & tactical urbanism initiatives to test & for consultation
  • Trial an “open streets” initiative in the city centre and work with interested local boards to trial it in other centres

Cllr Richard Hills summed it up: “At the Victoria-Queen St intersection at lunchtime, we’ve got 4500 people crossing & 500 cars. We’ve halved the number of cars coming down Queen St already, from 21,000 to 10,000. We have 7000 bikes/day coming into the city. That’s [the equivalent of] a whole lane from Silverdale.”

Link:
Committee agenda item 9, City centre masterplan 2040   

Earlier story:
12 January 2006: Auckland hires London urban design specialist Campbell-Reid

Attribution: Council committee meeting & agenda.

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City restaurant & Flat Bush office passed in at auction, but Colliers gets 2 other sales

Both the city restaurant premises & Flat Bush office auctioned at Colliers today were passed in, but the agency reported 2 non-auction sales, one an office in central Manukau and the other an office & warehouse in the North Harbour estate at Rosedale on the North Shore.

CBD

High St

42C High St:
Features: 110m² retail unit at foot of the Metropolis apartment tower, 2 parking spaces, 2 storage units, tenant Café BBQ Duck Ltd
Rent: $92,500/year net + gst on 7-year lease, initial term from 1 December 2016, 3 set annual increases followed by market reviews, one 7-year right of renewal
Outgoings: $43,003/year + gst; casual parking space $80/week including gst included in rental; net lease capped at $20,000 + gst until 1 December 2021 under vendor underwrite
Outcome: passed in at $1.45 million at auction
Agents: Tony Allsop & Gawan Bakshi

North-east

North Harbour

7A Parkhead Place:
Features: 1196m² office & warehouse tenanted by Australasian company Vocus (NZ) Ltd
Rent: $196,000/year + gst + opex
Outcome: sold to an investor for $3.3 million + gst
Agents: Matt Prentice & Euan Stratton

South

Flat Bush

Laidlaw Business Park, 42 Ormiston Rd, unit 9:
Features: vacant 483m² office, 12 parking spaces
Outcome: passed in at auction
Agents: Matthew Barnes & Chris Wakim

Manukau Central

20 Lambie Drive, unit 6:
Features: 385m² second-storey open plan office unit, 8 parking spaces
Outcome: sold with vacant possession for $1.32 million
Agents: Matthew Barnes, Ryan Gibb & Alex Harper

Attribution: Auction documents, agency release.

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Bermac signs 10 leases in 2018

Bermac Property Ltd has completed 10 leases from Whangarei to Blenheim this year, 6 of them around Auckland.

Warren Berman & Zane McAlpine left senior roles at CBRE in Auckland in 2016 to set up Bermac as a property consultancy & advisory business. They say independence is its key point of difference – it isn’t aligned to any single real estate agency, commercial valuer or other property services provider. (More details about the directors below).

CBD

High St

35 High St, part level 5:
Features: 57m² office premises leased to Recruitment Studio Ltd
Term: 3 years
Rent: undisclosed; leased on a gross rent basis with fixed annual increases
Agent: Zane McAlpine

Victoria St

62 Victoria St West, part level 3:
Features: 206.3m² office, modern fitout
Term: 2-year lease
Rent: undisclosed
Agent: Warren Berman

62 Victoria St West, part level 3:
Features: 132.7m² office, modern fitout
Term: undisclosed
Rent: $350/m² net
Agent: Warren Berman

Isthmus east

Mt Wellington

79 Carbine Rd:
Features: 1265m² of semi-improved land, 33 parking spaces
Term: 5 years 4 months
Rent: undisclosed
Agent: Warren Berman & Zane McAlpine

87 Carbine Rd:
Features: 937m² of warehouse, office & amenities, 24 parking spaces
Term: 6 years
Rent: undisclosed
Agent: Warren Berman & Zane McAlpine

89 Carbine Rd:
Features: level 1 office totalling 981m² of office & amenities, 22 parking spaces
Term: 6 years
Rent: undisclosed
Agent: Warren Berman & Zane McAlpine

North

Whangarei

41A Herekino St:
Features: 102m² industrial unit with amenities
Term: 3 years with rights of renewal
Rent: undisclosed
Agent: Zane McAlpine

North-east

Browns Bay

64 Clyde Rd:
Features: 202m² retail premises leased to the F45 Gym franchise
Term: 4 years
Rent: undisclosed; leased on a net rent basis with fixed annual increases
Agent: Warren Berman

South Island

Marlborough

Blenheim

8 Opawa St:
Features: 100m² industrial unit with amenities & parking
Term: 3 years with rights of renewal
Rent: undisclosed
Agent: Zane McAlpine

South of the Bombays

Bay of Plenty

Rotorua – Whakarewarewa

23-25 Scott St, unit 1:
Features: 230m² industrial unit with office, amenities & parking
Term: 2 years with rights of renewal
Rent: undisclosed
Agent: Zane McAlpine

About Berman’s directors:

Mr Berman has 25 years’ experience in real estate in South Africa & New Zealand. He ran his own property consultancy business from 2003-07 with his main client Shortland Management Ltd, which outsourced the management of its portfolio to him. He headed CBRE’s Auckland asset services business for 5 years and also worked for JLL & the Franklin Co Ltd in New Zealand.

Mr McAlpine began his property career in 2001 at Kea Property Group Ltd, where he learned the fundamentals of property, facilities & financial management from the ground up during 7 years of service. He also worked at CBRE for 7 years – in 2 spells – and was national director responsible for asset services there from 2012-16. And he was also responsible Oyster Property Group Ltd’s commercial property management portfolio for 2 years.

Link: Bermac Property

Attribution: Company release.

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One sale out of 7 apartments auctioned, another sold post-auction

Published 1 December 2017, updated 4 December 2017:
One apartment sold, 6 were passed in (only one without a bid) and one was withdrawn from Ray White City Apartments’ auction on Thursday. 3 of the unsold properties had remediation issues.

Post-auction, a second apartment in the Soho Lofts between Queen & High Sts has been sold substantially above the pass-in figure. The building doesn’t yet have a code compliance certificate, although most remedial works have been completed.

CBD

High St

Updated: Soho Lofts, 55 High St, unit 4A:
Features: 59m², one bedroom
Outgoings: rates $1279/year including gst; body corp levy $2985/year, remediation still underway
Income assessment: $400/week until July 2018, appraisal $480-500/week
Outcome: passed in at $405,000, sold post-auction for $480,000
Agents: Josh Muriwai & Liz McCarthy

Learning Quarter

Wakefield Apartments, 18 Wakefield St, unit 2C:
Features: 2 bedrooms, 2 bathrooms, parking space
Outcome: auction cancelled
Agents: May Ma & Mark Li

Quay Park

The Docks, 2 Dockside Lane, unit 306:
Features: terminating leasehold, 150 years from 1996, ground rent reviewed every 7 years, next review November 2018; 60m², 2 bedrooms, 2 bathrooms, parking space; defects discovered, remediation plan underway
Outgoings: rates $1617/year including gst; body corp levy $9009/year including $3513/year ground rent
Income assessment: $650/week current
Outcome: passed in at $210,000
Agents: Dominic Worthington & Ady Huang

Hudson Brown, 57 Mahuhu Crescent, unit 401:
Features: leasehold, next ground rent review November 2018; 38m², one bedroom, deck, secure covered parking space
Outgoings: rates $1448/year including gst; body corp levy $7009/year including ground rent
Income assessment: $460/week current
Outcome: passed in at $110,000
Agent: Dominic Worthington

Victoria Quarter

Altitude, 34 Kingston St, unit 1B:
Features: 40m², 2 bedrooms
Outgoings: rates $1071/year including gst; body corp levy $3447/year
Income assessment: $460-480/week furnished
Outcome: passed in at $310,000
Agents: Adam Gurr

Zest, 72 Nelson St, unit 209:
Features: 36m², furnished 2 bedrooms
Outgoings: rates $1149/year including gst; body corp levy $3070/year
Income assessment: $400/week current, rising to $420/week on 13 December
Outcome: passed in at $305,000
Agents: Michelle & Judi Yurak

Zest, 72 Nelson St, unit 312:
Features: 40m², 2 bedrooms, balcony
Outgoings: rates $1162/year including gst; body corp levy $3306/year
Income assessment: $480-520/week furnished
Outcome: sold for $365,000
Agents: Michelle & Judi Yurak

Beaumont, 220 Victoria St West, unit 2B:
Features: 90m², one bedroom, parking space; auctioneer Ted Ingram said a remediation claim was made in 2008 but no proceedings were ever filed; however another owner said the claim was ongoing; with no bid, Mr Ingra commented: “You’ve probably achieved the result you’re after”
Outgoings: rates $1687/year including gst; body corp levy $6539/year
Income assessment: $650-700/week furnished
Outcome: no bid
Agents: Damian Piggin & Daniel Horrobin

Attribution: Auction.

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Updated: 3 sell out of 10-apartment offering, 4th sells shortly after

Published 24 November 2017, updated 28 November 2017:
3 of the 10 apartments & suburban units auctioned at Ray White City Apartments on 23 November sold under the hammer. A fourth, in the Soho Lofts, was sold shortly after the auction.

CBD

High St

Updated: Soho Lofts, 55 High St, unit 6A:
Features: 196m², 2 bedrooms, study, 2 bathrooms, 2 parking spaces in separate building, 155 Queen St
Outgoings: rates $2435/year including gst for apartment, $1356 & $769/year for parking; body corp levy $8815/year for apartment, $1482/year including gst for each parking space; vendor indemnified buyer against liability for any outstanding remediation work, to finalise code compliance certificate & for any further litigation costs
Outcome: passed in after bids up to $1.185 million, closing with vendor bid at $1.25 million; a sale was concluded later in the day at $1.25 million
Agents: Josh Muriwai & Liz McCarthy

Learning Quarter

Celestion, 19 Anzac Avenue, unit 1402:
Features: 50m², furnished 2 bedrooms, 10m² balcony
Outgoings: rates $1448/year including gst; body corp levy $4725/year
Income assessment: vacant – outside hotel lease
Outcome: passed in at $496,000
Agents: Michelle & Judi Yurak

96 on Symonds, 96 Symonds St, unit 502:
Features: 45m², fully furnished 3 bedrooms
Outgoings: rates $1201/year including gst; body corp levy $4783/year
Income assessment: $650/week fixed until March – out of apartment management pool; appraisal $650-680/week
Outcome: sold for $501,000
Agents: May Ma & Mark Li

Uptown

Nova en Scotia, 18 Scotia Place, unit 9G;
Features: 51m², 2 bedrooms, secure parking space & storage locker
Outgoings: rates $1513/year including gst; body corp levy $4953/year
Income assessment: vacant – appraisal $470-500/week in present condition, $500-550/week renovated
Outcome: sold for $542,500
Agents: Mitch Agnew & Ryan Bridgman

Victoria Quarter

Sugartree Centro, 145 Nelson St, unit 801:
Features: 42m², one bedroom, 4.6m² balcony
Outgoings: body corp levy $2375/year
Income assessment: $480-520/week furnished
Outcome: no bid
Agents: Lisa Zhang

Isthmus east

Epsom

Ivory, 10 Lion Place, unit 201:
Features: 103m², 3 bedrooms, 2 bathrooms, balcony, 2 secure basement parking spaces, 2 storage units
Outgoings: body corp levy $4172/year
Outcome: sold for $1.386 million
Agents: Tanya Kwasza & Andrea Manni

Parnell

Stonemason’s House, 27 Falcon St, unit 3C:
Features: 53m², one bedroom, mini Juliette balconies
Outgoings: rates $1633/year including gst; body corp levy $3291/year
Outcome: passed in at $420,000
Agents: Tanya Kwasza & Andrea Manni

Isthmus west

Eden Terrace

43 Virginia Avenue East, unit 104:
Features: 61m², fully furnished 2 bedrooms, deck, secure basement parking space
Outgoings: rates $1246/year including gst; body corp levy $4195/year
Income assessment: $500/week, fixed until September 2018, appraisal $500-550/week furnished
Outcome: passed in at $350,000
Agents: May Ma & Mark Li

Sandringham

10 Begbie Place, unit 7:
Features: cross-lease, 1/8 share in 1310m², 44m² unit, one bedroom
Outgoings: rates $1451/year including gst
Income assessment: $315/week unfurnished
Outcome: vendor bid at $300,000, passed in at $301,000
Agents: Dusan Valenta & Adele Keane

North-west

Te Atatu South

59 Royal View Rd, unit 2:
Features: 3 bedrooms, garage
Outgoings: rates $1723/year including gst
Outcome: offered on “as is, where is” basis, passed in at $605,000
Agents: Zarlane & Bernie Grubisic

Attribution: Auction.

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3 central area buildings & Eden Terrace development property sold

Bayleys agents have sold 3 central area properties on High St (pictured above), Queen St and on Vernon St, plus an Eden Terrace site intended for development.

The Vernon St building is just up from the convergence of Victoria & Wellesley Sts at Victoria Park, and round the corner from some major developments occurring along Sale St.

CBD 

High St

41 High St:
Features: 240m² site, 434m² 2-level character building, ground floor previously occupied by fashion store is vacant while upstairs is leased to tanning clinic with March 2018 final expiry
Rent $61,219/year net + gst
Outcome: sold for $5.9 million
Agents: Cameron Melhuish & Mike Adams

Queen St

239 Queen St:
Features: 38m² retail unit on Queen St frontage of Mid City complex; new 12-year lease to Avanchi kebab takeaway, in occupation for over 10 years
Rent: $150,219/year net + gst
Outcome: sold for $2,935,657 at a 5.13% yield
Agents: Quinn Ngo & James Chan

Victoria Quarter

2A-2D Vernon St: 
Features: 3-level mixed-use unit-titled building comprising 111m2 boutique office floor with monthly tenancy, 3 81-90m2 apartments above, plus basement parking
Rent: $37,080/year net + gst on office space; apartments leased at $700-750/week on monthly residential tenancies
Outcome: sold for $3.2 million at a 4.7% yield
Agents: Cameron Melhuish, Matt Gordon & Genevieve Thompson-Ford

1 Minnie St, Eden Terrace.

Isthmus west

Eden Terrace

1 Minnie St:
Features: underdeveloped 1115m² elevated corner site zoned mixed use, 809m² 3-level building with warehouse, office & showroom space on first 2 levels & 3-bedroom apartment above
Outcome: sold to a developer for $3.888 million with vacant possession on long-term settlement
Agents: Scott Kirk & James Were

Attribution: Agency release.

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3 sales & 2 leases around inner city

Bayleys agents have sold 3 retail & foodcourt spaces in the inner city, and have signed a large lease on a 2-storey building (pictured) off Queen St just above Mayoral Drive and another lease in the former Ports of Auckland building on Princes Wharf.

CBD

Sales

High St

3–7 High St, unit G2:
Features: 88m2 retail outlet, new 5-year lease plus one 5-year right of renewal to Timberland, relocated from Britomart, with 2% annual rental increases from third year of lease
Rent: $95,175/year net + gst
Outcome: sold for $2.115 million at a 4.9% yield
Agents: Sarah Boles & Jim Wana (Bayleys Wellington)

Queen St

115 Queen St, unit C:
Features: 220mformer foodcourt premises at rear of Burger King outlet
Outcome: sold with vacant possession for $1.68 million to offshore Chinese buyer intending to establish restaurant
Agents: Quinn Ngo, Owen Ding & James Chan

Shortland St

3-13 Shortland St, unit 6C:
Features: 30m2 retail unit on ground floor of ex-South British Insurance building, leased to Flight Centre for 6 years from May 2014
Rent: $70,000/year net + gst
Outcome: sold for $1.4 million at a 5% yield to offshore Chinese investor
Agents: James Chan & Matt Lee

Leases:

Uptown

10 Turner St (pictured):
Features: 1361m2 standalone 2-level office building, 27 basement parking spaces, leased for 6 years to education tenant
Rent: $300,000/year net + gst
Agents: Nicolas Ching & Beterly Pan

Waterfront

Princes Wharf, 139 Quay St, unit 1A:
Features: 151m2 ground-floor retail premises, leased to icecream retailer for 10 years from December, with one 10-year right of renewal, 2-yearly reviews to market
Rent: $235,000/year net + gst
Agent: Sarah Boles

Attribution: Agency release.

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7 sub-5% sales at Bayleys commercial auction

Today’s Reserve Bank cut in the official cashrate was well & truly factored into commercial property prices yesterday at Bayleys’ Total Property auction as 6 fully leased properties sold at sub-5% yields. 3 more were sold at yields under 5.6%, and another at sub-5% was achieved at an auction brought forward.

11 of the 16 properties on the day’s auction list were sold under the hammer.

CBD

High St

3-7 High St, unit G1:
Features: 173m² retail unit on ground floor of 7-storey character building, new 3-year lease to fashion retailer Flo & Frankie from 1 October + 3 3-year rights of renewal
Rent: $150,000/year net + gst
Outcome: sold for $2.83 million at a 5.3% yield
Agents: Sarah Boles

Learning Quarter

The Waldorf Tetra, 85 Wakefield St.

The Waldorf Tetra, 85 Wakefield St.

Waldorf Tetra, 85 Wakefield St, units E & K:
Features: 15 serviced, fully furnished apartments plus additional space currently used as a common room, totalling 447m² on 2 titles on one floor, lease to Waldorf Group until February 2018 with no right of renewal
Rent: $152,104/year net + gst
Outcome: sold for $2.75 million at a 5.53% yield
Agents: Quinn Ngo, James Chan & Matt Lee

Queen St

115 Queen St, unit C:
Features: 210m² ground-floor retail unit fronting pedestrian lane at foot of Swanson St, for sale with vacant possession
Rent: had holding income of $104,000/year + gst until end of August
Outcome: no bid
Agents: Quinn Ngo & Owen Ding

Isthmus east

Onehunga

6 Newsome St, Onehunga.

6 Newsome St, Onehunga.

6 Newsome St:
Features: 477m² site, 336m² building in Onehunga industrial precinct, recently renewed 4-year lease to Petty Dies & Laser Cutting Ltd, which also occupies interconnected neighbouring property
Rent: $33,000/year net + gst
Outcome: sold for $810,000 at a 4.07% yield
Agents: James Valintine & Greg Hall

93 Selwyn St:
Features: 959m² site (improvements not included) zoned terrace housing & apartment building under proposed unitary plan, holding income from lease to community trust childcare centre until February 2018, with 6-month cancellation clause
Rent: $12,000/year net + gst
Outcome: sold for $1.7 million
Agents: Paul Dixon & Tony Chaudhary

Panmure

24 Queens Rd:
Features: 175m² site in retail strip, town centre zoning under proposed unitary plan, 223m² building, pizza outlet on ground floor & law firm above
Rent: $33,000/year net + gst
Outcome: passed in at $510,000
Agents: Simon Aldridge & Oscar Kuang

Isthmus west

Mt Eden

471 Mt Eden Rd (pictured at top):
Features: 273m² business 1 corner site going to mixed use under proposed unitary plan, 113.5m² retail premises with short-term tenancy, 6 parking spaces
Rent: $87,821.50/year net + gst holding income
Outcome: sold for $1.885 million at a 4.66% yield
Agents: Phil Haydock & Tony Chaudhary

Newton

3 Abbey St, Newton, sold at a 4.31% yield.

3 Abbey St, Newton, sold at a 4.31% yield.

3 Abbey St:
Features: 607m² mixed-use site on corner of Gundry St, 2-level building occupied by Art + Object for 9 years, final 3-year right of renewal from September exercised
Rent: $152,000/year net + gst + outgoings
Outcome: sold for $3.525 million at a 4.31% yield
Agents: Dave Stanley, Alan Haydock & Tony Chaudhary

North-east

Rosedale

42 Constellation Drive:
Features: 121m² ground-floor premises in commercial complex, leased to 3A Copies & Design Ltd
Rent: $30,000/year net + gst
Outcome: sold for $560,000 at a 5.36% yield
Agents: Own Ding, James Chan & Eddie Zhong

9 Orbit Drive, Rosedale, sold at a 4.47% yield.

9 Orbit Drive, Rosedale, sold at a 4.47% yield.

9 Orbit Drive, unit 1:
Features: 664m² roadfront office & warehouse unit, 10 parking spaces, new 6-year lease to Advanced Lighting Technologies (NZ) Ltd
Rent: $95,000/year net + gst, increasing to $110,000/year in 2017
Outcome: sold for $2.125 million at a 4.47% yield
Agents: Matt Mimmack & Ashton Geissler

9 Parkhead Place, unit B:
Features: 246.5m² industrial unit – high stud warehouse 208.5m², office & amenities 38m²
Rent: $29,000/year net + gst, leased until March 2017
Outcome: sold for $655,000 at a 4.43% yield
Agents: Matt Mimmack & James Kidd

Wairau Valley

15 Kaimahi Rd:
Features: 1011m² industrial site – 404m² yard, 521m² warehouse, established tenant Geovert Ltd has renewed for 5 years from 1 August
Rent: $64,752/year net + gst
Outcome: sold for $1.369 million at 4.73% yield
Agent: Matt Mimmack

North-west

Henderson

260 Swanson Rd, unit E:
Features: 100m² retail unit, established tenant Ezycash on renewed 4-year lease + 3 further terms of 4 years
Rent: $30,000/year net + gst
Outcome: passed in at $610,000
Agents: Mark Pittaway

New Lynn

80 Delta Avenue:
Features: 1142m² site, 1469m² 2-level warehouse & office building, part-tenanted, vendor occupying the balance
Rent: $54,050/year net + gst
Outcome: sold for $1.7 million
Agents: Grant Miller, Laurie Bell & Mike Adams

2-6 Todd Plaza:
Features: 377m² town centre site, 313m² single-level character building fully leased to 3 tenants – Thai restaurant, Glover Real Estate & dairy
Rent: $105,420/year + gst + outgoings
Outcome: sold for $2.11 million at a 4.99% yield, auction brought forward with declared reserve of $1.975 million
Agents: Tony Chaudhary, Amy Weng & Mike Adams

South

Highland Park

20-22 Dunrobin Place, unit 7:
Features: 180m² unit, 8-year lease to Flow Academy of Motion from June 2014, has had seismic upgrade to A+
Rent: $54,000/year net + gst
Outcome: passed in at $880,000
Agents: Eddie Zhong & Ranjan Unka

Papakura

61-63 O’Shannessey St:
Features: 500m² site in 2 titles, refurbished 957m² building, Veolia Water NZ Ltd head office
Rent: $149,062/year net + gst
Outcome: no bid
Agents: Graeme Moore

South of Bombays – Coromandel

Hahei

404 Lees Rd:
Features: 21ha of waterfront land, full coastal access
Outcome: withdrawn from auction
Agents: John Greenwood & Belinda Sammons

Attribution: Auction.

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