Ellerslie offices to be auctioned

5:00 AM Saturday February 4, 2017 True Commercial

2 Kalmia St has a prominent site in Ellerslie’s retail and business precinct. Photo / Supplied

Brokers expect a multi-level office investment property in Ellerslie to be keenly sought-after following a favourable zone change.

The four level, Mixed-Use zoned building is to be auctioned on March 7 — unless sold earlier by negotiation — through Gareth Fraser, Simon Child and Greg Goldfinch of Colliers International.

Fraser says the building, at 2 Kalmia Street, occupies a prominent site in Ellerslie’s main Great South Road retail and business precinct.

“This is a seldom-available opportunity for an investor to acquire a significant Mixed-Use property holding in this fast changing business precinct,” he adds.

“The property’s new Mixed Use zoning under the operative Auckland Unitary Plan opens the way for many future redevelopment options, enabling entertainment, office, retail, residential and educational use.

“It is well positioned to take advantage of the re-gentrification and forecast growth expected in Ellerslie. Auckland Council is working to revitalise this area of Ellerslie over the short to medium term — this is supported by the recent zoning change to Mixed-Use.”

The four-level, fully-leased building with a net lettable area of 1476sq m generates a net passing annual rental income of about $373,377. It is configured with eight individual tenancies ranging from 61sq m to 382sq m, with the majority of lease terms through to 2019 and 2022.

Child says the scarcity of prime, investment properties in the area, coupled with the pace of development in the area, will also be a strong drawcard for buyers.

“Given the ongoing transformation of this part of Ellerslie from a light industrial to more favourable retail, office and showroom use, we expect to receive enquiries from buyers who may look to eventual redevelopment of the property.

“The location in the heart of the Southern Corridor, adjacent to the southern motorway, provides a convenient option for companies who value CBD-quality premises with professional surrounds, excellent transport links, and a better position to Auckland’s industrial precincts and airport.

“The area benefits from high pedestrian and vehicle traffic, attracted by the wide range of commercial activities in the area.”

Child says it also appeals to owners or staff who live in the surrounding residential areas including Ellerslie, Remuera, Epsom, and the Eastern Bays.

The building has four levels of air-conditioned offices and 45 car parks.

The ground floor is configured with two individual tenancies, each with kitchenette. The first floor layout provides three individual tenancies with a central lobby area and amenities/kitchenette. The second floor has two individual tenancies accessed via a central lobby — these have staff amenities with laminated and stainless steel sink benches. The third floor is occupied by one tenant and also has kitchen facilities.

The property benefits from dual access from Kalmia St at the front, and Great South Rd at the rear. It is within walking distance of Ellerslie’s upgraded train station and can be easily accessed from the southern motorway from Greenlane and Penrose interchanges.

Surrounding businesses and buildings include office buildings, Ellerslie Fire Station, Ellerslie Primary School, Ellerslie Bowls Club and the Chinese Embassy.

Nearby amenities and attractions including Ellerslie Village, rail station, and the racing and event centre, Fraser says.

“It is an extremely tightly-held retail area that services a large residential catchment.”