Cracking K'Road property with nightclub, cafe and apartment tenants
The K’Road home of one of Auckland’s most vibrant nightspots is for sale, offering investors a chance to acquire a split-risk commercial property in a tightly held city fringe location.
For 17 years, revellers and ravers have crowded into the basement of 268 Karangahape Road to dance all night long at Ink Bar – Auckland’s go-to club for underground house, disco and techno music.
On the ground floor is vegan and vegetarian cafe Prans Soul Food, while the first floor is a five-room apartment used for short-stay accommodation.
The three tenancies return an annual rental income of $169,092 net plus GST.
Colliers International brokers Jonathan Lynch and Adam White are marketing the 383.5sq m property for sale by tender.
Offers close at 4pm on Thursday 16 August, unless it is sold prior.
Lynch says it is a chance to acquire a generously zoned, split-risk investment in one of Auckland’s most humming neighbourhoods.
“This character property really is K’Road in a nutshell – it’s about as diverse as investment properties get,” he says.
“You’d be hard-pressed to find anywhere else in Auckland with a trendy nightclub in the basement and a healthy, family-run Hare Krishna cafe on the ground floor.
“With its sought-after city fringe location, excellent amenity and future upside, this vibrant investment ticks all the boxes.”
Built in the 1930s, the three-level commercial building comprises a 105.5sq m basement, 91.3sq m ground floor retail unit, and 113.1sq m first floor apartment.
The standalone building is on a 164sq m freehold title with no encumbrances.
It is located on the southern side of K’Road, midway between Mercury Lane and East Street, next to popular gay nightspot Family Bar.
White says the property benefits from a busy urban location with 24/7 pedestrian flows, making it an ideal location for retailers and hospitality providers.
“The location is set to become even more appealing once the City Rail Link is completed in 2024,” he says.
“The new K’Road train station, to be located on nearby Mercury Lane, will endow the area with arguably the best connectivity in the city fringe.
“Queen Street is an easy walk away, while the motorway interchange is within two minutes’ drive.”
White says the property has long-term redevelopment potential thanks to its generous Business City Centre zoning and unencumbered freehold title.
This zoning enables a mix of commercial, residential and retail activities, with the greatest intensity of development in terms of height and floor area of any zone in the city.
The building is on a long site with street frontage to K’Road. Its basic construction is of brick infill panels and reinforced concrete framing with timber floors and a lean-to galvanised roof.
The site backs on to a right of way that will directly abut the planned Karangahape Road City Rail Link station.
Long-standing tenant Ink Bar is near the end of a six-year lease returning $58,032 in net annual rent.
The lease has one remaining right of renewal, extending the final lease term to May 2025. Market rental reviews are on a two-yearly basis.
Prans Soul Food, which has a loyal customer base, is on a three-year lease returning $54,260.87 in net annual rent.
Two rights of renewal of three years each extend the total lease term until June 2025, with three-yearly rent reviews.
The apartment, which is split into five recently renovated bedrooms, is run as short-stay accommodation by a single point of contact.
The periodic tenancy returns $1,150 a week. Annual expenses of $3,000 bring the net annual rent to $56,800.
Lynch says the property will appeal to a broad range of buyers.
“With its split-risk income and future development potential, the options available to savvy investors are as diverse as the property’s vibrant locale.”
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