Family sell prime corner property in evolving K’Road
122-130 Karangahape Road, Auckland
- 2-level building on 359m² corner site
- leased to ANZ Bank
- net annual income of $164,958
- 3-year rights of renewal and coinciding rental reviews to market
- Initial Evaluation Procedure (IEP) seismic assessment of 100% NBS
- 6 on-site basement carparks
- zoned Business-City Centre (Karangahape Road Precinct)
- National Total Property marketing campaign with auction method of sale
- 5 active bidders on auction day
- 377 bids recorded in a 40-minute auction
- SOLD for $4,005,000 at 4.12% yield
- Sold to a local passive investor who has other properties in the area
A high profile commercial building on the corner of Karangahape Road and Upper Queen Street sold under the hammer after an auction that saw five parties inch the bidding up, before a competitive finish between two bidders.
Matt Lee, Quinn Ngo and James Chan of Bayleys' international division took the ANZ-occupied building through the auction campaign and seasoned Bayleys’ auctioneer, Richard Valintine, called the auction.
The two-level building was originally home to the National Bank when it was completed in 1992. Following its acquisition of National Bank, ANZ relocated from another location on Karangahape Rd taking over the lease on the property and occupying the whole building.
Matt Lee says the property is in the heart of the vibrant and eclectic “K’Road” precinct, which has undergone considerable rejuvenation in recent years.
“A number of buildings and sites in K’Road have been converted or redeveloped to higher intensity mixed commercial and in some cases, residential use,” says Lee.
“The area just seems to be evolving all the time and there is a major revamp of the streetscape planned with an enhancement project by Auckland Council and Auckland Transport set to further transform this popular location.”
The completion of the City Rail Link (estimated to be 2024), will also boost the rejuvenation of Karangahape Rd, with an underground station to be located just a block away from the ANZ building.
Looking ahead, the property could have potential as a redevelopment site with an allowable height limit of 35 metres.
Allen Yu, spokesperson for the long-time family owners, says the auction result was rewarding.
The property was on the market for the first time since it was built in 1992 and Allen Yu’s family had owned the property from new.
“We are very proud of this property, but my mother is advancing in years and a decision was made to sell the property on,” explains Yu.
“James Chan of Bayleys has been a family friend for more than 30 years and we have regularly sought his advice on the market and the best time to sell.
“The property is in such a good location and has a very good tenant so we thought it would achieve a good outcome.”
Yu says he has plenty of experience with the auction process and trusted it would bring about the best result for the family.
“The atmosphere in the room on auction day was fabulous and we achieved a price that we are very happy with.”
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