Auckland city fringe investment leased to social enterprise Eat My Lunch
A sought-after upper CBD investment property close to the future Karangahape Station is for sale with a long-term lease to successful social enterprise Eat My Lunch.
Colliers International brokers Shoneet Chand and Jonathan Lynch have been exclusively appointed to market 5-7 Galatos Street, Auckland, for sale by auction.
The property – featured in the latest Colliers Portfolio – will go under the hammer at 11am on Wednesday 24 October, unless it sells earlier.
Chand says it is an exceptional opportunity to acquire a quality freehold investment with strong tenant covenant and abundant future potential.
“Located a short walk from K’Road, the property is superbly positioned to benefit from the completion of the City Rail Link, which will encourage further change of use in the area,” he says.
“It offers a light-filled, 660sq m showroom and warehouse on an unencumbered, 706sq m future development site.
“Long-term tenant Eat My Lunch Limited is an established, well-known social enterprise that is part-owned by a subsidiary of supermarket giant Foodstuffs.
“The company is signed to an eight-year lease returning $189,150 plus GST in net annual rent, with two-yearly market rental reviews from August 2018.
“Two rights of renewal of four years each extend the total lease term to 31 July 2032.”
Chand says the current lease expires in 2024, when the City Rail Link is due for completion.
“The timing couldn’t be better for conversion or redevelopment to residential use.
“The property is zoned City Centre under the Auckland Unitary Plan, which allows for a wide range of activities and the greatest intensity of development in Auckland.
“Permitted uses include dwellings, visitor accommodation, entertainment facilities, offices, commercial services, conference facilities, retail, education and public amenities.”
The property is on a level, regular-shaped site with 36m of north-facing frontage to Galatos Street.
A 3.5m setback from the footpath provides space for eight sealed and marked off-street car parks.
Built in about 1966, the 712.9sq m building comprises two levels of office space at the front and a medium to high stud warehouse area at the rear.
Lynch says the warehouse has been refurbished to the modern, food-grade standards required by Eat My Lunch.
“The attractive and expansive warehouse kitchen area features large, south-facing windows that extend to the top of the ceiling, which rises from a 4m stud at the knee to 8m at the apex.
“This extensive glazing provides particularly good internal light throughout the day, without the glare of direct sunlight.
“Attractive modern lighting and lacquer-finished concrete flooring complete the ‘industrial chic’ look.”
A full-height motorised roller door to the northwestern corner of the warehouse provides unimpeded goods and service access.
The offices and ground floor amenities are all finished to a high standard.
Lynch says Galatos Street is a short cul-de-sac off East Street, which runs between K’Road to the north and Canada Street to the south.
Canada Street provides access to Upper Queen Street to the east and Nelson Street to the west, the latter via the bright pink Lightpath pedestrian and cycle bridge.
“The property is five minutes’ drive to the centre of the CBD via Queen Street and a short 100m walk to the future Karangahape Station, on nearby Mercury Lane,” Lynch says.
“The motorway network can be accessed from various locations. The Hobson Street interchange, via Pitt Street, provides access south and west, while Hopetoun Street provides access north.
“Further southbound on-ramps are nearby on Symonds Street or Khyber Pass Road.”
Lynch says Galatos Street is a mixed-use pocket of city fringe development, typified by older low-rise warehouses that have been converted to showroom, office and entertainment uses.
The wider area is one of Auckland’s most vibrant commercial and retail districts.
“K’Road is a hive of activity and is close to Ponsonby Road and Grey Lynn, both of which offer a good mix of cafes, restaurants and bars.”
Chand says tenant Eat My Lunch was founded with the goal of ensuring no child at school goes hungry.
“The company is a ‘one-for-one’ social enterprise that funds its community initiatives by selling healthy lunches to office workers.
“Within its first three years, the company has given away close to one million free lunches to children in need. That’s more than 2700 lunches made and delivered daily.
“The company currently provides lunches to 91 low-decile schools in Auckland, Hamilton, Wellington and Christchurch.
“Its activities are enabled by a network of more than 12,000 volunteers who give up their time to make the children’s lunches.”
Chand says 5-7 Galatos Street is an ideal feel-good property investment.
“With its strong tenant covenant, outstanding location and undeniable future potential, this is a rare opportunity that ticks all the boxes.”
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