An immaculately refurbished heritage villa in the heart of Grey Lynn’s vibrant West Lynn Village is offered to the market amid renewed demand from passive investors in healthy commercial opportunities.

Bayleys Auckland Metro Markets director James Were is marketing the property for sale by tender, closing at 4:00 pm on Tuesday, 3rd December 2024 (unless sold prior), alongside colleague Ben Wallace.

Were says the 587sqm (more or less) freehold site at 542 Richmond Road is a stand-out opportunity in the current market, providing purchasers with the chance to secure an architecturally designed, long-term investment in one of the region’s most sought-after city-fringe precincts.

“The medical centre, which has been serving the local community for more than three decades, operates from an immaculately restored villa that has undergone an extensive refurbishment, including a modern two-level extension.

“Favourable Business – Local Centre zoning enhances its future development potential, providing flexibility for investors looking to add value on a longer-term horizon. As Grey Lynn and surrounding city-fringe suburbs continue to gentrify, driven by high demand for both residential and commercial spaces, this property represents a secure, low-risk opportunity in a market where such assets are increasingly hard to come by,” he adds.

The 270sqm (more or less) villa features heritage character charm, complemented by a modern fit-out, including a generous reception area/waiting room, six consulting rooms, and supporting staff facilities.

A freestanding studio at the front of the property offers additional utility, while landscaped grounds provide a welcoming atmosphere for both staff and patients.

Bayleys Auckland Corporate Sales & Leasing director Ben Wallace says the main street property is tenanted by the general medical practice, delivering a return of approximately $120,000 net pa on a lease secured through to 2029, with built-in rental growth adding further appeal.

“The strong tenant covenant provides an exceptional opportunity for passive investors to acquire a high-performance investment offering critical services in a location that continues to draw significant interest as a mixed-use destination.

“A current six-year lease term with renewal rights to 2037 provides ongoing security of tenure, while the built-in CPI-linked rental reviews ensure that returns will continue to grow every four years.”

Strategically located in the West Lynn Village, a popular precinct known for its boutique shops, cafes and restaurants, Wallace highlights the property’s advantage at the heart of a dynamic community. “The area’s appeal, easy parking, and distinctive offerings, set within Grey Lynn’s picturesque, leafy streets, make it a sought-after destination for intentional visitors.”

With Grey Lynn’s status as a premier city-fringe suburb cemented by its proximity to bustling Ponsonby Road, Kingsland, and Auckland’s CBD, the ongoing demand for quality commercial spaces in the area makes this property an attractive proposition for investors seeking stable returns and the potential for capital growth.

“High-profile positioning to popular connector route Richmond Road, a strong tenant covenant, and the benefit of future development potential give this property a superb edge as a prime investment within one of the city’s most desirable locations. Investors searching for a passive, rewarding opportunity with minimal management requirements will find it a compelling option in the current market,” the brokers say.

Click here for more information on the listing.