Investors target dual-tenanted Ponsonby site

Investors have a rare, affordable chance to secure a dual-tenanted commercial property foothold on Auckland’s famous Ponsonby retail and hospitality strip.

The two-storey character building with secure onsite parking for sale at 127 Ponsonby Road is fully leased to a world-class tattoo studio and a popular Auckland eatery chain. It sits across the road from the bustling laneways of Ponsonby Central, in the very heart of Ponsonby’s lively commercial precinct.

The well-presented property generates a total net rental return of $88,000 plus outgoings and GST per annum.

Serving customers from an approximately 85-square-metre ground-floor tenancy is Evans Kebab. One of five Evans eateries in central Auckland, it occupies the Ponsonby site on a current lease that runs to 2029 with two further three-year rights of renewal.

Upstairs, Two Hands Tattoo inks its designs in premises of some 53 square metres, on a lease that runs through to 2029.

One of the city’s longest established and best-known tattoo studios, Two Hands lays claim to having New Zealand’s strongest line up of resident and international guest artists specialising in numerous global styles. The studio has successfully done business at the Ponsonby site for over 15 years – underlining the quality of the tenant and location.

The freehold land and buildings at 127 Ponsonby Road, Ponsonby, Auckland, are being marketed for sale by Phil Haydock and Alan Haydock of Bayleys Auckland Central.

The site will be sold by way of a tender closing on Tuesday 14 April, unless it is sold earlier.

Phil Haydock said the property would make an excellent entry point or addition to a commercial property portfolio.

“This is an increasingly scarce opportunity to secure a prime piece of Ponsonby’s famed strip in an accessible price bracket and, in doing so, gain a foothold in one of the country’s most fashionable retail and hospitality destinations,” he said.

The approximately 138-square-metre building is underpinned by a freehold landholding of some 197 square metres.

“The separate upstairs and street-level tenancies enable owners to reap the benefits of diversified income in a position with profile and foot traffic aplenty.

“Accessed via a right of way over the neighbouring property, the rear of the site provides room for two secure stacked car parks or a loading bay for transferring goods. This is an absolute rarity in this high-profile Ponsonby setting and a genuine competitive advantage for occupiers in such a busy central location,” Phil Haydock said.

The site for sale sits within the Business – Town Centre zone under Auckland’s unitary plan. This provides a focus for commercial activities and growth, allowing wide-ranging activities spanning commercial, leisure, residential, tourist, cultural, community and civic services.

Alan Haydock said the Ponsonby Road investment was underpinned by its city-fringe position amid a world-class concentration of premium boutique and national operators, destination dining, cafes and lifestyle operators.

“These are a year-round drawcard for locals and visitors, making Ponsonby Road one of Auckland’s most desirable commercial precincts.

“Handy to the CBD and well served by public transport and roading links, this area’s affluent residential catchment and reputation as a fashion, food, and creative hub make it a prime target for retail, showroom, hospitality and professional service occupiers.

“Opportunities to secure freehold assets in this stretch are few and far between, but with perennial demand from investors and tenants, such purchases can be highly rewarding,” Alan Haydock said.