Herne Bay property has secure tenant and development potential

"Opportunities to purchase investment properties in this tightly held premier suburb are very rare," says John Stringer, commercial sales broker for Barfoot & Thompson Commercial who, with colleague Jack Atherton, is marketing 185 Jervois Rd for sale by tender closing at 4pm on Thursday June 2 at the agency’s Kitchener Street office. Stringer says the property will not be sold before the close of tenders.

"This is a superbly located property built in the 1940s and leased to an established healthcare provider," says Stringer.

The building area of 155sq m comprises two flats that have been joined together and encompasses six rooms, kitchen, reception, waiting area and two bathrooms. It occupies a site of 508sq m with parking for four cars out the front and two carparks at the rear.

The basic construction is predominantly timber framing with external stucco cladding finish over brick; timber joinery and concrete tile roof.

"The land is cross-lease with a fee simple title and a lease in place for 999 years between each title both owned by the vendor," says Stringer.

Location

The property is located on Jervois Rd about 100 metres East of Salisbury Street and across the road from the Gables Kitchen & Bar and Kelmarna Avenue. It earns $75,000 per annum plus GST and outgoings from a five-year lease commencing January 15, 2013, with two rights of renewal of five years each.

Zoning

Atherton says the current zoning is Residential 7A under the under the Auckland City Council's Isthmus Operative District Scheme. The strategy for the zone is characterised by a range of building types and includes relatively high rise, high density development over three and four levels.

The zone controls include a maximum height of 10 meters and a site intensity of one dwelling per 200sq m (1:200sq m).

"However, a big attraction for investors and developers is a planned zoning of Residential Terrace Housing and Apartment Buildings under the Under the Proposed Auckland Unitary Plan [PAUP] which allows for buildings up to four-storeys high," says Atherton. "Under the proposed zoning there are no site intensity maximums, with bulk and scale of building controlled by maximum height, set-backs, minimum yard requirements and height in relation to boundary and building coverage. The maximum height is 13.5 metres or 14.5 metres if a semi-basement is provided.

Investment Opportunity

"As such, this property represents a superb investment opportunity with a secure income stream in place and future development potential under the Unitary Plan."

Atherton says Herne Bay is recognised as being one of the most expensive suburbs in Auckland along with the surrounding areas of St Marys Bay, Ponsonby, Westmere and Freemans Bay.

"This is due to its closeness to the Auckland CBD, the size and style of the houses in the area, and the range and number of nearby amenities. Jervois Road features localised shopping with hospitality and boutique retail outlets along with varied office and service providers.

"The arterial transport network in this area offers excellent connectivity with regular city bus routes providing quick and easy access to the CBD."