Big CBD site has consent for high rise apartment building
Artist’s impression of a new 17 level apartment building approved for 71 Airedale St, Auckland CBD.
A 1092 sq m Auckland CBD freehold site, with resource consent just granted for a 17 level apartment building and offering net annual holding income of $220,000, is among over 100 commercial and industrial properties being offered for sale as part of Bayleys’ latest Total Property portfolio.
Located at 79 Airedale St, the property is being market by Robert Platt and James Chan of Bayleys Auckland and is for sale by tender closing December 2 unless it sells earlier by negotiation.
“The site is located in the heart of Auckland CBD's thriving student zone close to Auckland University, AUT University and other local and international education campuses,” says Platt. “A 93 apartment development scheme has been designed that received resource consent from Auckland Council in mid October. Student occupiers are the target market with a combination of studio and one and two bedroom apartments. The design for the building maximises the light and views with all of the apartments having exterior decks.
“The vendor has completed all the hard work in securing consent so this represents an excellent opportunity to immediately activate this development project. Alternatively, given the property is generating substantial holding income, the purchaser could take time to undertake their own feasibility studies for the site and review the wide range of options offered by its flexible Strategic Management Area 5 zoning,” Platt says.
The land is currently used by Tournament Parking for parking 80 vehicles and is being sold with a lease to the company earning annual net income of $220,000 plus GST. Tournament has a six year lease from July2014, although the lease can be terminated with three months’ notice.
The property includes 40 car parks located in the basement of an adjoining six level freehold building at 81 Airedale St. Chan says the 81 Airedale building is not part of the sale but the land beneath it and the two levels of basement car parking are part of the title for 79 Airedale St and do come with the property being offered for sale.
The building at 81 Airedale St was constructed in 2002 for Auckland International College (AIC) and has four levels of tutorial and office accommodation with two levels of 32 apartments above on individual titles. The building has an A-grade seismic rating and is now the head office and main Auckland campus for Edenz College which uses it for general English, business diploma, film making and teacher training courses.
Chan says the consented apartment building at 79 Airedale St will be positioned at the rear of the Edenz building with a separate access way off Airedale St. The development has consent for 44 car parks, of which 40 already existing under 81 Airedale St.
“A new owner would have the option of unit titling the proposed building at 79 Airedale St and selling off the apartments individually. Alternatively, secure long term accommodation arrangements could be discussed with one or more of the nearby education providers which would mean the new building could be sold in its entirety as an investment opportunity.”
Platt says 79 Airedale St is well positioned between Symonds St and Mayoral Drive, allowing good access to major arterial routes and the motorway system as well as being a short walk away from Queen St.
He says the Strategic Management Area 5 zoning allows a wide range of activities including residential, student and tourism accommodation, education, office, entertainment, food and beverage and some retail. The maximum height allowance is 50 metres with a basic floor to land area ratio of four-to-one metres up to a maximum of 8:1 with bonuses and for approved accommodation. Platt says there will be similar development allowances under the property’s Proposed Auckland Unitary Plan City Centre zoning.
Chan says both the University of Auckland and AUT are continuing to develop their central city campuses with Auckland University constructing a new science tower while work will start early next year on a new AUT engineering, technology and design building.
He says the universities and private sector education providers in the CBD are benefiting from increasing numbers of overseas students who are contributing significantly to New Zealand’s record migrant arrivals - up 13 per cent in the September 2015 year to 118,900 people. A total of 27,000 migrants arrived on student visas, up 5600 on the previous September year, with 10,700 of those being from India and 5200 from China.
Robert PLatt (left) and James Chan (right), of Bayleys Auckland.