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Designer apartment portfolio placed on the market for sale

A portfolio of nine tenanted apartments in a boutique residential complex less than two-years-old has been placed on the market for sale.

The apartments are located on the same floor within the 38-unit SOMA Apartments development at 12 Mackelvie Street in the Central Auckland city-fringe suburb of Grey Lynn. The six-storey SOMA Apartments complex was built in 2018, and features two towers separated at right angles by a central stairwell and lift shaft.

The one-bedroom units for sale range in size from 69.6 square metres to 90.9 square metres – including deck areas – and each have what is known as a ‘flexi’ room which can be used as a work-from-home office, study, media room, or second bedroom. The units occupy all of level three in the Soma Apartments complex.

The nine-apartment portfolio is now being marketed for sale by Deadline Private Treaty through Bayleys Auckland, with offers closing on September 10. Bayleys investment salespeople Stephen Scott and Kate Kirby said the portfolio offered an array of options for potential buyers.

“The nine units could be purchased and operated as one single passive investment portfolio as they currently are. Or, being individual freehold titles, any number of apartments could be sold off from the portfolio independently on a drip-feed basis as part of a longer-term strategy,” Scott said.

All nine apartments are rented for between $650 to $790 per week. Four of the units come with single car parking spaces in the basement, and some of the units have allocated secure storage space. Combined, the nine residential dwellings generate a gross rental income of $341,640 per annum.

The nine units are subject to an annual combined body corporate levy of $28,635 administered by Barfoot & Thompson, and are managed under an existing residential management agreement running through to 2021 – with the rate fixed at five percent of rental.

An independent property valuation estimates the portfolio of nine apartments to be worth $7.915 million. Scott said that at that pricing level, and on current rental income, the nine apartments delivered a gross rental yield of 4.3 percent.

“This yield figure could be enhanced in the medium term through the introduction of higher weekly letting rates as and when new tenancies arise, or by any new owner taking on the management of the properties when the current management contract expires.”

With a ceiling stud height of 2.7 metres, each unit has quality fixtures and fittings such as under-floor heating, while the flexi room has built-in storage units which can be used as wardrobe space. The fully-tiled bathrooms have open showers, while the laundry washer and dryer appliances are stored in a hallway cupboard. The open-plan living areas of the kitchen and lounge open onto a deck.

“The convenience of the flexi room configuration and size means SOMA apartments have a broad appeal to potential renters – and as a consequence they are quickly let whenever they come onto the market,” said Scott.

“The benefit of their size and potential to sustain two bedrooms is compounded by SOMA Apartments’ location. Mackelvie Street is an easy walk from Ponsonby Road’s hospitality strip, or a 20-minute walk to Kingsland’s bars and restaurants. It’s equally handy for public transport routes along both Ponsonby Road and Great North Road and is within walking distance of the CBD.

“The five apartments in the Mackelvie Street tower have city views toward Sky Tower, while the four apartments in the northern tower have attractive water vistas over the Waitemata Harbour, the Auckland Harbour Bridge, and out to the Waitakere Ranges.”

Kirby said the low maintenance SOMA Apartments complex was constructed of tilt-slab concrete columns and steel framework on concrete floor slabs, encased by precast concrete exterior cladding.

“The minimalist and modern clean lined styling of all 38 residences within SOMA Apartments is reflective of Ponsonby’s chic persona, and is another reason why they are let so quickly. In addition, being less than two-years-old and with minimalist shared communal spaces or residents’ amenities, there is a relatively low level of property maintenance required,” she said.

“At only six storeys tall, and with 38 residences, the boutique nature of SOMA Apartments gives them a clear point of difference from apartments letting in much bigger complexes around the central city fringe. The building is fully secure - with resident code access at all entry points.”

Other notable new-build structures close to SOMA Apartments include the new head office locations for both motor vehicle dealership Giltrap Prestige and energy drink brand Red Bull.


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