Fringe CBD properties for sale
The three-level commercial building at 19 Newton Rd.
Two fringe CBD properties in central Auckland are for sale, offering enhanced future development options under their Unitary Plan zonings as well as immediate potential to add value.
The two properties in Newton and Eden Terrace are featured in Bayleys’ latest Total Property portfolio, released yesterday, and are being marketed by Scott Kirk and James Were of Bayleys’ Auckland City & Fringe team.
“They offer a variety of opportunities for investors and developers as well as owner-occupiers,” says Kirk.
The larger of the two offerings is a 2123sq m three-level commercial building on an 1804sq m site at 19 Newton Rd, for sale by tender closing November 17 unless sold earlier by negotiation.
The property is generating annual income of $490,042 plus GST from a mix of net and semi gross leases.
“The building is fully leased to seven tenants but the existing rentals appear to be below market, providing rental growth potential,” says Kirk. “Leases on a significant amount of space on the ground and first floors are either periodic or come to an end later this year or next year, with no rights of renewal.
“This opens up immediate possibilities for the next owner to increase the rental return from the property given the strength of the location. Alternatively, it could present an opportunity for an owner-occupier looking for a good chunk of versatile city fringe space on the border of Grey Lynn and Ponsonby close to the CBD and motorway systems.”
Were says the building is mostly used as office premises, but it would also be suited to showroom and warehouse use. The lower ground floor has 626sq m of high stud space with rear roller door access and would lend itself to warehouse use, showroom/office or a combination of these uses.
The 694sq m ground floor provides mainly office accommodation, with a smaller storage area with roller door access, and receives excellent natural light from three sides.
Two boarding house operations are in the building at 140 New North Rd, Eden Terrace.
The upper floor offers predominantly office space with a small warehouse and showroom area at the northern end of the building - accessed up a ramp and with parking directly outside.
Were says the property is in a high-profile position with extensive frontage to Newton Rd and rear access also from Burgoyne St, shown on the title.
“This provides benefits for future development and also allows drive-through access assisting with traffic movements,” he says.
The area around the building has been tar sealed and provides abundant parking for up to 54 vehicles. There is also a lease on the Newton Rd frontage to ISite Ltd which has two large signs it rents out, making the most of the property’s exposure to high volumes of passing traffic.
Kirk says the property’s Business Mixed Use zoning under the Unitary Plan has increased the property’s height allowance from 15 m to 18m and also removed floor to land area restrictions.
New North Rd
The other property comprises boarding and short-term accommodation facilities, in a 1055sq m corner position, at 140 New North Rd, Eden Terrace. It is for sale by tender closing November 15 unless sold earlier by negotiation.
The property is a building comprising two converted warehouse areas, known as the Bali Bungalows and Edenvale.
The 1343sq m Bali Bungalows has a high-stud entry off New North Rd and consists of 17 self-contained one and two bedroom units. Storage and car parking is provided in the basement assessed off Porters Avenue.
The 571sq m Edenvale boarding hostel (above Bali Bungalows) has 22 rooms with a communal lounge, kitchen and two bathroom facilities.
The property is now producing net annual rental income of $165,000 and the current tenant has been operating both accommodation facilities since August 2006.
“Either party can terminate the lease by giving six months’ notice, and this could offer a significant add value opportunity for the next owner, given the property’s location in a rapidly developing and sought after residential precinct,” says Kirk.