Innovative food ‘n’ furniture premises placed on the market for sale
The land and buildings housing an innovative retail business which combines a neighbourhood café with a designer furniture store has been placed on the market for sale.
The two-storey character building on the corner of Margan Avenue and Hutchinson Avenue in the Auckland suburb of New Lynn is home to a long standing and popular food and beverage business known as The Corner Café, and a boutique home furniture shop called The Old Woodshop.
The Old Woodshop designs and sells New Zealand-made native timber furniture – consisting of rimu, oak, beech and pine, crafted into a range of bookcases, display cabinets, entertainment units, coffee and dining, hall and lamp tables, headboards and beds, tallboys, lowboys, and dressing tables.
Meanwhile, the Corner Café is a typical suburban neighbourhood café – where the majority of turnover is created through the breakfast and lunch trading periods. The café featured in an episode of the New Zealand TV drama series The Almighty Johnsons.
The building is leased as a single tenancy which encompasses both The Old Wood Shop and The Corner Café as a singular occupant on a new six-year lease, with two further three-year rights of renewal generating a net annual revenue of $78,742 plus GST. Further to this, there is also a lease with The Textile Recycling Centre Ltd for the right to place a clothing bin on the site. This provides an additional $2,608.70 + GST p.a. of income taking the total return to $81,350.70.
The property comprises a 263 square metre building siting on a 560 square metre flat rectangular-shaped freehold corner site at 2 Hutchinson Avenue, and is being marketed for sale by auction on April 11 by Bayleys Auckland. Salespeople Mike Adams and Phil Haydock said the core of the character property was built in the 1930’s, with the barn-like two-storey furniture warehouse portion added to the initial retail structure in the 1990s.
“The two entities operating under the one roof at this property are wholly symbiotic and feed into each other’s revenue streams,” Mr Adams said.
“It is quite common to see customers at the café popping into the furniture showroom ‘out of curiosity’ to see what’s there after they have enjoyed a mouth- watering plate of eggs Benedict and a cappuccino, and similarly, furniture shoppers utilise the café for refreshments after their retail-based visit. It’s all about convenience.
“The boutique nature of The Old Woodshop’s product range perfectly suits the intimate and warm rustic environment within the character retail space from where it has been trading for some 22 years.”
Mr Adams said The Corner Cafe’s strong and loyal suburban clientele was predominantly drawn from within a two kilometre catchment radius – stretching out to Green Bay, Titirangi and Glen Eden. It was also a favoured destination for mothers after having dropped off their children to New Lynn Primary School immediately across the road.
“The ‘homely’ lived-in nature of the venue’s inviting interior is in stark contrast to the chain-operated food and beverage operations found in shopping malls and retail precincts,” he said.
An extensive covered outdoor decking area sits to one side of the café’s floorspace, with high railings facing out onto Hutchinson Avenue ensuring not only security for the premises, but also safety for toddler-aged café patrons should they stray from their parents’ control.
“The Corner Café benefits from that corner site profile, with customers enjoying the constant ‘hubhub’ which comes from vehicular and foot traffic passing through what is a major intersection directly in front of it,” Mr Adams said.
“Its location on the corner of Hutchinson and Margan avenues is the buffer zone between New Lynn’s residential and commercial/retail precincts. As a result, The Corner Café draws in clientele both going to, and coming from, their shopping activities.”
Mr Haydock said the building had a seismic rating of 90 percent of New Building Standards (NBS), and had a street frontage of almost 33 metres onto Margan Avenue, and 16 metres of street frontage onto Hutchinson Avenue.
He said there was sealed car parking for up to six vehicles at the rear of the premises, with goods access to The Old Woodshop for stock delivery and collection.
“With two different business spaces within the one premises, there is the underlying longer-term potential to look at diversifying the tenancies into separate arrangements to reflect a food and beverage tenant in one portion and a purely retail-focused tenant in the other,” Mr Haydock said.
The retail portion of the building is constructed of timber pillars, beams and trusses on reinforced concrete foundations. The property is in an area zoned terrace housing and apartment building (THAB) under Auckland’s Unitary Plan, and sits directly opposite the sizeable West Edge residential development currently being built.