A productive commercial unit on the main corner of Ponsonby and College Hill leverages current market demand for income-producing assets with strong locational and design fundamentals.
A tenanted commercial unit in the heart of Ponsonby’s Three Lamps retail precinct is generating strong interest amongst investors favouring its strong letting history and attractive income.
The contemporary office spans 467sq m (more or less) of freehold property in a prestigious building on the corner of Jervois and Ponsonby Road, which benefits from excellent exposure to passing traffic and transit links to Grey Lynn, the Central Business District and motorway interchanges.
Bayleys salesperson James Chan says the property’s preferable location, configuration and strong rental credentials work with current market trends, underpinning value capture potential.
“Lease tenure and income returns offset macro headwinds for investors while guiding strategy and asset selection.
“The subject property, tenanted by one of New Zealand’s largest digital training providers, provides an excellent passive income and lease options that could see a new owner extend the current arrangement or explore opportunities upon lease expiry.
“In particular, high demand for city-fringe accommodation continues as the flight to quality sees occupiers seek accommodation in higher amenity areas.
“The locational fundamentals are strong as a drift west draws southern CBD tenants following a loss of amenity during City Rail Link construction disruption.
“At the same time, hybrid working models have led occupiers to use less space for desks and more for collaboration. Given the flexible mix of classrooms, offices and conference rooms, the premises is well-positioned to service this demand.”
Mr Chan is marketing Unit N, 338 Ponsonby Road for sale with colleague Matt Lee.
It is offered by deadline, closing at 4:00 pm on Thursday, 26th October 2023 (unless sold prior).
Commanding one of the largest footprints in the building, the property is located on the ground floor of a high-profile premises, formerly fronted by the Ponsonby Club Hotel – nicknamed the Gluepot.
Bayleys salesperson Matt Lee says concert-goers from the 70s, 80s and 90s will be familiar with the Gluepot, given it was one of the city’s premier music venues, attracting international acts until its closing in 1994.
“While the Gluepot was in the original 1940s building, a second structure was redeveloped into offices and apartments in 1994, including unit N, which backs onto Redmond Street.
“This provides rear vehicle access for the units and a secure car parking area,” he says.
In addition to various classrooms, offices and conference rooms, the property features a large kitchenette, bathroom facilities and four exclusive car parks.
Access to the unit is via a common area lobby off Ponsonby Road.
The unit is occupied by Lumify Group (formerly Auldhouse) on a renewed four year lease, returning an annual net rental of circa $118,462 plus GST.
“The tenant is entrenched, having operated from the property since 1996, which offers the new owner security of tenure from a reliable business with a demonstrated history.”
“Lumify Group, which has a strong presence in New Zealand, Australia and the Philippines, operates from the premises as an education and training centre.
“An existing lease until 2026 provides future consideration for the incoming owner to extend the global occupant’s tenure and collect a healthy return or investigate alternative occupancy options upon lease expiry.
“Additionally, the property may suit an owner-occupier looking for new premises in a sought-after location.”
Situated at the northern end of Ponsonby Road, the Three Lamps precinct hosts various retail hospitality and office activities, servicing an affluent residential catchment.
“Strategically located to take advantage of proximity to the CBD and motorway links, just off the main intersection of Ponsonby Road and College Hill, Three Lamps features very low vacancy, appealing to occupants for parking availability, the quality of surrounding businesses, and a vibrant neighbourhood village atmosphere.
“The property is a trifecta for investors, located in an extremely desirable area visible to passing vehicles and foot traffic, whilst commanding a strong rental return from an established tenant with underlying opportunities for future growth.”