There was no shortage of investors at Bayleys Auckland commercial property auction this week.
Several dozen hopeful buyers turned up at Bayleys head office auction room at Viaduct Harbour and the bidding was off to a spirited start for the first lot, a CBD fringe workshop with a flat above it located at 6 Cargill St in Newton.
The 248 square metre freehold site had a 160 square metre workshop on the ground floor and a comfortable 70 square metre apartment with a north facing deck above it, which was added in 2003.
It was being sold with vacant possession because the vendor, who lived and worked on the premises, was retiring.
The property had a current (2011) rating valuation of $580,000 but the auctioneer had no trouble getting an opening bid of $650,000 and competition from several potential buyers pushed the bids up to $880,000 at which point the auctioneer announced it was "on the market," which set of a another fierce bidding war and it eventually sold under the hammer for $1.22 million.
Bayleys agent Cameron Melhuish who handled the sale said freehold stand alone properties located so close to the CBD and priced at under $1 million were very rare, and ones that were already set up for live/work arrangements were even rarer.
"There isn't a lot of it around and it was really well presented," Melhuish said.
"Most people would have expected it to sell for under $1 million and as a result of that we got really good bidding in the auction room and two or three of them really liked it."
Altogether 15 properties were put up for auction on the day, with seven selling under the hammer and eight being passed in to be sold by negotiation, with two of those selling the following day.
The full results were:
458 Great South Rd, Greenlane.
A 787 square metre site used as a car yard, with a modern 184 square metre office/showroom at the rear. The tenant has committed to a lease renewal until August 2017, it provided a return of $120,000 a year and sold under the hammer for $2.25 million, giving a yield of 5.3%. Its rating valuation was $1.36m.
Unit B, 30 Vestey Drive, Mt Wellington.
A 540 square metre office/warehouse with 10 car parks, and a new five year lease in place returning $92,428 plus GST a year net. It sold under the hammer for $1.275 million compared to its rating valuation of $1.15 million.
2 Great South Rd, Papatoetoe
A 916 square metre site with a 230 square metre office/accommodation block at the rear. Currently used as a car yard on a monthly tenancy it was offered for sale with vacant possession but did not attract any bids and was passed in for sale by negotiation. Update: Sold post auction for $790,000.
11 Parity Place, Wairau Valley.
A 440 square metre industrial unit on an 814 square metre site, offered with vacant possession. It had a rating valuation of $700,000 and sold under the hammer for $810,000.
199-201 Rodney St, Wellsford.
Two adjoining retail properties and a vacant house in need of some refurbishment. One shop leased to Kiwibank, the other to Four Square, returning $95,000 a year plus gst between them. It sold under the hammer for $1.27m compared to the properties' combined rating valuations of $1.31 million.
3029A Great North Rd, New Lynn.
A modern office/retail building with a lettable area of 340 square metres, leased to BNZ for eight years from June 2011, at a net rental of $142,700 plus gst a year, with the next review in 2017. There was only one bidder for this property and it sold for $1.95m, providing a yield of 7.3%.
1280-1282 Dominion Rd, Mt Roskill.
A 435 square metre, two level retail/office building on a 450 square metre site in the Mt Roskill shopping strip with a rating valuation of $1.06 million. Offered for sale with vacant possession it sold under the hammer for $1.4 million.
Lot 3, 2-4 Cartwright Rd, Kelston.
A vehicle servicing yard with workshop returning $31,625 plus gst a year. The auctioneer asked for an opening bid of $275,000 and when none was received it was passed in.
205-207 Great South Rd, Papakura.
A mixed retail/office property on a 329 square metre site, with a floor area of 628 square metres divided into four tenancies providing a net return of $91,192 plus gst a year. It had a rating valuation of $1.35 million but was passed in for sale by negotiation with a highest bid of $870,000.
Unit 9, 4 Kellow Pl, Wiri.
A modern, concrete tilt slab office/warehouse with a new three year lease returning $38,000 plus gst a year. It had a rating valuation of $345,000 and was passed in with a highest bid of $439,000. Update: Sold post auction for $450,000.
Unit E, 4 Graham Rd, Takanini.
A mixed use property with a 98 square metre office, 98 square metre showroom and 388 square metre warehouse, leased until May 2015, returning $75,000 net a year. It had a rating valuation of $660,000 but was passed in with no bids.
20C Hannigan Drive, Mt Wellington.
A modern, vacant 339 square metre industrial unit with a rating valuation $450,000. It received an opening bid of $500,000 from the floor which was not accepted by the auctioneer and it was passed in for sale by negotiation.
Level 2, 14 Viaduct Harbour Ave.
A 297 square metre office with a 15 square metre deck, four car parks (two stacked) and views over the Viaduct Marina. On a leasehold title with a rating valuation of $1.71 million, it was offered with its existing high quality furniture and vacant possession but was passed in without any bids.
22 O'Shannessey St, Papakura.
A 295 square metre retail/office premise with a four bedroom 195 square metre apartment above and 160 square metres of basement space on a 414 square metre site. The basement and ground floor retail space were vacant and the apartment was rented at $350 a week. It had a rating valuation of $1.1 million and was passed in with no bids.
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