Mixed results this time but the Rothesay Bay sale was a stunner.
Why would anyone want to pay that much for a bunch of almost vacant out of the way suburban shops?
Sure there is some redevelopment value but then you have to put heaps of money into any redevelopment in order to eventually extract any value out.
At least there will be one really happy vendor out of all this – not so sure about the purchaser.
7 Morgan St:
Features: 347m² site zoned mixed use, 3-storey building contains total 611m² floor area, 207m² of office on first floor above ground-floor storage/workshop & secure parking, top floor currently a 138m² 3-bedroom apartment with 89m² of deck returning $750/week; Newmarket growth strategy plan change 196 would allow height increase from 15m to 21m with setback and increase in basic floor:area ratio from 2:1 to 3:1, maximum 4:1 with bonuses
Rent: $109,114/year net + gst after unrecovered outgoings of $5955/year
Outcome: passed in at $1.6 million
18 Florence Avenue:
Features: 410m² building on 809m² site at the corner of George Lowe Place, in Orewa’s business district adjoining a newly developed high-spec 3-level office building, zoned for retail service & commercial with 10.5m height limit under current zoning
Outgoings: rates $8961/year, insurance $3192/year
Outcome: passed in at $715,000
579-585 Beach Rd:
Features: 1298m² site, reduced to 1152m² if Auckland Transport cuts a 6m rear service lane through to a council carpark, 3 shops containing total 225m², one vacant and the others leased at $226 & $176/m², 120m² bungalow at rear returning $10,400/year from monthly tenancy
Rent: net $33,776/year after $3007 deducted for insurance
Outcome: sold for $1.29 million