An entry level commercial property investment opportunity in Parnell with future residential conversion potential is for sale as part of Bayleys’ latest Total Property portfolio.
The 139 sq m ground floor unit at 29B Bath Street is currently generating net annual rental income of $42,000 from its lease to specialist tiling company, The Tile People.
“This tenanted investment represents a great opportunity for smaller investors to gain access to the highly sought after Parnell commercial property precinct at an affordable price,” says marketing agent Millie Liang of Bayleys’ International Division.
The offering will go up for sale as part of Bayleys’ next Total Property portfolio auction on October 24, unless sold prior. It has a Capital Valuation for rating purposes of $740,000.
“The premises currently provides quality character showroom accommodation with a high stud, exposed ceilings and polished concrete floors,” says Liang. “The unit was nicely renovated to a very high standard for The Tile People’s occupation in 2014.”
Established in 1999, The Tile People offers a comprehensive tiling design, supply and installation package. It specialises in commercial and residential projects working directly with clients, architects, designers and builders. The company has extensive wall and floor tile ranges in stock and also supplies on an indent basis from Europe and Asia.
“Fitted out with designers and architects in mind, Tile People’s Bath St architectural showroom space has meeting tables, a lounge area with a bar/coffee machine and moving visual displays,” says Liang. “Gallery wall displays and mobile floor plinths showcase The Tile People’s exclusive collections which include latest trends in Italian porcelain and natural stone.”
The company has been involved in a wide range of development projects including hotels where it has provided product for the Sky City Grand and Sofitel (originally Westin) in Auckland’s CBD, apartment buildings and other large-scale residential projects, commercial buildings, retirement villages and car showrooms including for McLaren and Porche.
The Tile People Limited exercised the first of two two-year rights of renewal in July 2017. The lease’s next rent review will be in July next year should the company decide to exercise its final right of renewal.
Liang says longer term the property could also offer an opportunity for owner occupiers and add value investors.
“The property’s flexible Town Centre zoning allows a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services.
“The property is located within double grammar school zone (for Auckland Grammar and Epsom Girls Grammar schools) which enhances its appeal for a residential conversion at some stage in the future, subject to obtaining the necessary consents. The rectangular shape of the unit which also has a mezzanine level would certainly lend itself to this.”
Liang says the unit is surrounded by recent Parnell apartment developments which include 24 York St, 28 York St, One Three Cheshire and the Parnell Central Apartments
The property is within easy walking distance of the Parnell Rd shopping area which contains a wide range of cafes and restaurants and boutique retail outlets. It is also close to both the north-south SH1 and north-west SH16 motorways via Strand St.
Liang says a host of new retailers, food and beverage operators and business occupants have been attracted to Parnell by a mix of new developments as well as the refurbishment of existing character buildings.
“There is no doubt that Parnell’s central location close to the CBD, the waterfront and a number of other affluent residential suburbs as well as the major motorway networks is also a big drawcard for both business tenants and owner occupiers as well as new residents. Its accessibility has been further enhanced by the recent opening of the Parnell train station.”
The first stage of the $12 million station in Cheshire Street opened last year. When complete and receiving full services, up to 2000 passengers are expected to get off the train every morning.