A retail property with a residential flat above it (pictured) has provided its new owners with the lowest rental yield ever achieved on a commercial property sold in this country by Colliers International.
The two level property at 27-31 Park Rd Grafton, located just along the road from Auckland Hospital, had two retail premises downstairs and a two bedroom apartment upstairs that had been refurbished to a high standard (pictured below), as well as two covered car parks and a secure yard.
This week Colliers sold it at auction for $$2.58 million.
The two retail premises were providing rental income of $45,506 + GST a year while the upstairs flat was vacant.
The rent from the shops would have provided a rental yield of 1.76%, but adding the estimated rental income from the flat would provide a rental yield of about 3%, which is the lowest rental yield ever recorded by Colliers.
Tony Allsop who along with his colleague Janet Marshall, handled the sale, said the property had a net lettable area of 309 square metres and the site covered 379 square metres, which meant that on a land and building basis the price equated to about $8,000 per square metre.
Marshall said there were about 40 registered bidders for the property at the auction.
It was the first time the property had changed hands in more than 50 years.
It had a rating valuation of $1.85 million.
Pictured below: the deck at the front of the upstairs flat, overlooking the street.