Character property with redevelopment land at the rear
A prominent Grey Lynn corner property occupied by renowned local tenants the Gypsy Tea Room and Amica Boutique is for sale through Colliers International.
Located at the centre of thriving West Lynn village, the stunning character property is featured in the latest Colliers Portfolio.
It comprises two separate titles with a combined area of 574sq m, including undeveloped land at the rear, with split income from multiple tenancies.
Colliers International city fringe sales specialists Kris Ongley and David Burley are marketing 453 and 455 Richmond Road in Grey Lynn, Auckland, for sale by deadline private treaty.
Offers on the property’s two freehold titles, which are available either individually or as one parcel, close at 4pm on Thursday 5 September, unless sold prior.
Ongley says it is a rare chance to acquire a trophy investment in a sought-after Auckland suburb.
“This stunning local icon offers multiple income streams, strong tenant covenant, and the opportunity to add significant value through redevelopment of the land at the rear of the site.
“Superbly located on the high-profile corner of Richmond Road and Wilton Street, the fully leased property returns approximately $129,000 plus GST and outgoings in annual rent.
“Its well-known local tenants include the Gypsy Tea Room and Amica Boutique, as well as a first-floor residential sub-tenancy and a billsticker license.
“The rear of the property comprises approximately 350sq m of undeveloped land that is ripe for an add-value development. Generous Business Local Centre zoning permits retail, office and residential development up to 13m in height.
“As either individual offerings or a combined investment, these two titles present a stunning commercial property opportunity in tightly-held West Lynn village.”
Built in the 1920s, the two-storey character property comprises two retail tenancies on the ground floor, with offices and a three-bedroom apartment on the first floor.
The building is split by a party wall between the two titles.
The 291sq m title at 455 Richmond Road is located at the southern end of the site, on the corner of Wilton Street.
It has resource consent in place for a commercial and residential townhouse development on the relatively level, undeveloped land at the rear of the site.
The character building at the front is fully leased to GTR Holdings Limited, which operates the Gypsy Tea Room bar on the ground floor and utilises the office space above.
The company is signed to a new six-month lease returning $62,000 plus GST and outgoings in annual rent.
A 50sq m bar area fronts Richmond Road, while a 38sq m amenity area to the rear of the building includes a kitchen, bathroom and laundry.
The 58sq m first floor office, accessed by centrally located stairs, is divided into three separate offices and a bathroom. It enjoys good natural light and a pleasant outlook.
Long a staple of the Grey Lynn hospitality scene, Burley says the Gypsy Tea Room is a favourite with locals and visitors alike.
“With its quirky decor and eye-catching street appeal, the extremely popular local watering hole is synonymous with the West Lynn village,” he says.
“Anyone wanting to keep this establishment operating at its current location will have no challenge convincing the owner and his local patrons.”
The 283sq m title at 453 Richmond Road, located at the northern end of the site, underwent a significant renovation in 2013-14.
It is leased to Amica Limited, which operates the Amica Boutique hairdressing salon in a 60sq m ground floor retail tenancy.
The company is signed to a two-year lease returning $62,000 plus GST and outgoings in annual rent. The lease expires in February 2020, with no rights of renewal.
Burley says the salon was established in 2015 and has subsequently grown to be a popular local destination serving a loyal client base.
“Having solidified itself as a key component of the West Lynn village shops, the hairdresser plans to continue to cement its place in the area.”
Amica sublets the 55sq m first-floor apartment to a residential tenant.
The apartment includes a 10sq m kitchen and laundry to the rear of the ground floor, accessed via French doors off a timber deck and courtyard.
A small billboard on the side of the building, leased to Phantom Billstickers, returns $5,000 plus GST in additional rental income.
As with 455 Richmond Road, there is an area of undeveloped land to the rear of the site.
The character building across both titles is generally constructed of concrete, steel and timber structural framing upon a concrete base.
The exterior is clad with double-skin brick and concrete block to the rear and side, and a glazed retail frontage to the ground floor fronting Richmond Road.
The long-run iron roofing was recently upgraded as part of the refurbishment.
Inside, the walls are of rendered plaster and some hardboard linings, with board and batten ceilings.
The flooring is timber throughout, as is most of the joinery.
Burley says the West Lynn village comprises a range of suburban retailers and service providers, along with more recent mixed-use development.
“Richmond Road connects Ponsonby Road at its eastern end with Surrey Crescent at its western end. It generally comprises residential dwellings constructed in the early 1900s.
“The wider Grey Lynn area is well located to Auckland’s CBD and motorway networks, all of which are within a 10-minute drive during most times of the day.”
The property’s Business Local Centre zoning is not subject to any significant volcanic viewshatfs, allowing the permitted build height for this zoning to be maximised at 13m.
The property is subject to a Built Heritage and Character Overlay which would require planning advice as to what aspects of the building may be protected.
The Business Local Centre zone applies to a large number of small centres throughout Auckland that are generally located in areas of good public transport.
The zone primarily provides for the needs of surrounding residential areas, including local retail, commercial services, offices, and food and beverage.
Provisions typically enable buildings up to four storeys high, enabling residential and office use at upper floors.
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