Top dollar paid for the right properties at Bayleys commercial auction but others fail to sell

It was standing room only at Bayleys latest commercial property auction as the crowd of hopeful investors at their Viaduct Harbour offices overflowed into the foyer.

There were 21 properties offered for sale with 10 selling under the hammer and 11 being passed in for sale by negotiation.

Investors showed they were prepared to accept low returns to get the right property, with strong bidding pushing the yield on a large property in Mt Roskill down to 4.5% while a strip of six shops with parking in Howick achieved a net yield of  5.1%.

Overall though, most properties achieved yields in the 6% to 7.5% range.

There was also strong bidding on a 465sq m vacant residential section near Greenwoods Corner in Epsom which sold for $820,000.

The full results are below:

• 66-78 Vincent St, Howick. A strip of six shops with parking on a prominent corner site rented at $121,749 plus GST and outgoings, sold for $2.4 million, providing a net yield of 5.1%
   
• 589 Manukau Rd, Epsom. A vacant 465sq m section (freehold) near Greenwoods Corner with resource consent for a four bedroom townhouse, sold for $820,000.
   
• 196 Great South Rd, Papatoetoe. An office building with a new six year lease to ANZ Bank, rented for $140,483 plus GST and outgoings. Sold for $2.255 million, providing a 6.2% net yield.
   
• 197 Archers Rd, Wairau Valley. A vacant building with 937sq m of industrial space and 645sq m of warehouse/offices, in need of refurbishment. Sold for $1.13 million.
   
• 3/170 Wairau Rd. A 189sq m retail premises leased to food outlet Nando's until June 2019. Returning $73,000 plus GST providing a 6.9% yield.
   
• 15/170 Wairau Rd. A 335sq m retail unit leased to Produce Planet until 2023. Providing net rental of $95,000 plus GST. Sold for $1.26 million achieving a net yield of 7.5%.
   
• 395F Manukau Rd, Epsom. A 228sq m shop leased to a liquor store returning $55,825 plus GST and outgoings. Sold for $768,000 providing a net yield of 7.3%.
   
• 907 and 909 Dominion Rd, Mt Roskill. A 1606sq m mixed use site with appeal to developers and two tenancies returning $112,000 plus GST and outgoings. Sold for $2.47 million providing a net yield of 4.5%.
   
• 35A Jervois Rd, Ponsonby. A vacant two level rear property suitable for residential and/or commercial purposes, sold for $830,000.
   
• 288 Great South Rd, Manurewa. A 1467sq m property leased to automotive tenants, returning $60,376 net plus GST. Sold for $871,000 providing a net yield of  6.9%.

The following properties were all passed in for sale by negotiation:

• 5A Marken Place, Wairau Valley. A vacant 354sq m office/warehouse with six car parks. Passed in with a highest bid of $570,000.
• Unit 2, 2-10 Triangle Rd, Massey. Retail premises leased to The Mad Butcher. Returning $96,080 plus GST. Passed in with a highest bid of $1.05 million.
• 3A/24 Harris Rd, East Tamaki. A 178sq m engineering workshop with three car parks returning $19,000 plus GST and outgoings. Passed in with a highest bid of $220,000.
• 239 Archers Rd, Wairau Valley. A retail strip with four tenancies returning $235,208 net. The only bid on this property was on behalf of the vendor.
• 11 Fleet St, Eden Terrace. A villa with mixed use zoning converted to two, one bedroom flats returning a combined rental of $39,000. The only bid on this property was on behalf of the vendor.
• 13 Fleet St, Eden Terrace. A vacant 339sq m section next door to the above property. No bids.
• 46G Northcote Rd, Northcote. A retail premises leased to a liquor outlet until 2020. Returning $90,850 plus GST and outgoings. The highest bid from a potential purchaser was $1.05 million but the property was passed in after a vendor bid of $1.2 million was not exceeded.
• 255N Browns Rd, Manurewa. A 323sq m industrial unit with office space and dual street access. Current tenancy due to expire at the end of this year. No bids.
• 83 Elliot St, Papakura. A corner property with dual roller door access capable of being split into two tenancies. Providing holding income $33,351 plus GST and outgoings. No bids.
• 60 George St, Tuakau. An older complex on a corner site split into several retail tenancies returning $89,980 plus GST and outgoings. Passed in with a highest bid of $917,500.
• 171-181 Target Rd, Wairau Valley. A multi-tenanted property with 28 car parks returning $187,775 plus GST. Passed in with a highest bid of $2.25 million.