Two freehold investment properties in the heart of affluent Epsom’s retail strip offer investors the chance to collect dual income with the potential to occupy or adapt to optimise rental income.

The character buildings feature a combined 329sq m landholding at 89B and C, Great South Road, with a prominent profile towards the high-traffic intersection with Market Road.

Bayleys salesperson Oscar Kuang says that despite subdued consumer spending, retailers in well-located suburban centres continue to trade well, with a pause in the development pipeline underpinning rental rates for the foreseeable future.

“Multi-decade high population growth continues to add demand for goods and services, especially in prime locations with high pedestrian and vehicle traffic. The subject properties feature outstanding street profiles along vital arterial Great South Road, which connects Auckland’s city centre to key destinations like Newmarket, Ellerslie, and Takanini.

“Existing occupants benefit from a consistent stream of customers, courtesy of ongoing foot and vehicular traffic bound for the nearby Remuera Train Station and Southern Motorway connections.

“Additionally, both shops are due for a lease and market review this year, offering the new purchaser flexibility to align the property’s leasing strategy with their broader investment objectives. This could be to maximise rental income or reposition the properties for add-value conversion as mixed-use.”

Mr Kuang is marketing the properties together with Bayleys colleague James Chan for sale by auction scheduled at 11:00 am on Wednesday, 24th April 2024 (unless sold prior).

Both improvements feature two levels each, with internal staircase access to the first floor and rear access to on-site car parking via a right of way on Market Road.

The buildings feature a lofty stud height and airy feel in the retail areas, with a northeastern aspect gaining abundant natural sunshine throughout the day.

The northernmost unit at 89B Great South Road is tenanted by a popular rice bowl takeaway store with a three-year lease until September 2024. Next door at 89C Great South Road, a health and massage clinic occupies the premises with a three year lease to June 2024.

Both tenancies feature two further three year renewal rights and generate a combined net annual income of $56,000 plus GST.

The individually titled assets are located within Business – Local Centre zone, which provides for the local needs of the surrounding residential catchment and typically enables buildings of up to four levels and residential use on the upper floors.

Bayleys Director of International Markets James Chan says the potential to convert the properties for mixed-use offers another add-value dimension for investors, who have identified opportunities amid a slowing in the building and construction pipeline.

“Converting the upstairs areas into separate dwelling units offers an upside rental growth opportunity, which may be particularly attractive for investors engaged by the property’s exceptional city-fringe location within the sought-after Double Grammar School Zone (DGZ).

“Together, the dual assets offer purchasers compelling investment capacity. They combine income growth potential from a prime location, surrounded by established businesses and a thriving residential community, with flexible use options. This presents a well-rounded investment proposition, allowing purchasers to capitalise on current market dynamics for optimal return.”

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