Rare investment opportunity in Herne Bay residential complex

A rare investment opportunity has arisen to own a boutique 1940’s residential complex with rental growth opportunities in Auckland’s sought after suburb, Herne Bay.

The complex – named Courtney Place -comprises of six two-bedroom residences and eight onsite car parks, located on Jervois Road, close to the CBD and a short walk to the many cafes, restaurants and bars on Jervois Road and Ponsonby Road.

The sales consultant marketing the property - Cameron Melhuish of Bayleys Real Estate - says the sale of the property is a straightforward investment opportunity, with plenty of potential for development, either with rental growth or developing the land for more intensive residential purposes.

Melhuish say the complex is fully leased, providing a current cash flow of $110,000 per annum, with rent currently sitting below the industry standard – leaving opportunity for rent increases.

“The current average weekly rent sits at $353 per week, which is well below the industry standard which Crockers Property Group reports to be at $460 per week,” says Melhuish.

Courtney Place is in a single freehold title with a landholding of some 1,037 metres squared zoned residential 7B, which according to Melhuish allows opportunity to subdivide the property to a minimum site area of one residential unit per 200 metre squared blocks plus a maximum height of 12.5 metres.

“Residential 7b zone is favourable to developers, as it imposes minimal development controls– which means more expansive residential development is possible,” says Melhuish.

“This is the first time in 15 years this property has been for sale, and properties of this nature and location very rarely come on the market, or have been unit titled.”

Melhuish says the building has been well maintained and is architecturally designed with the classic style of the 1940’s period, and each resident has a generous living area.

The residence form a ‘U’ shape surrounding a central car parking area accessed off Jervois Road, and the units range in size with four of the units measuring 60.18 metres squared, and two of the units measuring 64.00 metres squared.

According to Melhuish, each of the residences is fully self-contained with two double bedrooms, a sizeable living area, kitchen, bathroom, laundry and a generous outdoor living area at the rear, with the leases all been of standard residential periodic tenancies.

“With this being such a well appointed well maintained complex, it has a history of maintaining strong occupancy, with two of the residence having leased units for seven years,” says Melhuish.

Melhuish says Herne Bay is considered to be a very affluent suburb, with house prices amongst some of the highest in the nation, so any property that offers potential development provides a valuable opportunity.

Herne Bay has all the conveniences of a city fringe suburb – being just a five minute drive to Auckland’s CBD, and a five minute walk to Ponsonby Road, with easy access to the Northern motorway, and still allowins peaceful living, with the suburb sitting on the shores of the Waitemata Harbour consisting of quiet streets and small city beaches.

“Residential buildings are usually held tightly held in the community and are always competitively sought after when they become available to the market, and we consider this building no exception.”

Courtney Place is being sold by tender closing November 25th, unless sold prior.
For more information contact Cameron Melhuish on phone 375 7496 or mobile 021 479 882 or email Cameron.melhuish@bayleys.co.nz