Greenlane car space offers broad appeal

1:39 PM Friday October 27, 2017 True Commercial

The site at 404-438 Great South Rd is home to central Auckland’s Hyundai and Isuzu franchises. Photo / Supplied

A large, high-profile commercial property with mixed-use redevelopment potential is for sale in Auckland’s Greenlane.

Colliers International is marketing 404-438 Great South Rd for sale by deadline private treaty closing November 29, unless sold earlier by negotiation.

Capital markets international director Richard Kirke, who is marketing the property with colleagues Peter Herdson, Blair Peterken and John Green, sees broad appeal.

“Very rarely do properties tick all the boxes for such a wide range of buyers — from developers looking to unlock the abundant redevelopment potential, to investors and owner-occupiers seeking a high-profile, strategic site.”

Kirke says the 6948sq m freehold property is zoned Business Mixed Use, allowing for a mix of residential, retail or commercial development of up to 18m.

“For two decades, it has been home to some of Auckland’s most prominent car showrooms and workshops,” he says.

“Only three and a half years remain on the current lease, with no rights of renewal, making it available for occupation or development from 2021.

“Developers and land-bankers and can draw on about a $1m in annual holding income while they make plans to unlock the future potential of a site surrounded by some of Auckland’s wealthiest residential areas.

“Investors have the opportunity to profit from increasing occupier demand for space along Auckland’s sought-after Southern Corridor, which is experiencing near-record low vacancy rates.

“Owner-occupiers have the chance to acquire a large, high-profile showroom property with a coveted freehold title in a prominent location.

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The Great South Rd property is in a zone allowing residential development, retail, food and beverage facilities. Photo / Supplied

“Auto industry users in particular will be able to make the most of the property’s modern showrooms, caryards and workshops, with minimal capital outlay.”

Kirke says the property is superbly located in the established suburban commercial area of Greenlane, which benefits from excellent access to the Auckland motorway network and CBD.

“The property has a frontage of about 110m to Great South Road, giving it huge exposure to high volumes of passing traffic,” he says.

“Great South Rd itself is a major arterial route that connects Auckland’s western and southern suburbs to the commercial precincts of Newmarket, Greenlane and Ellerslie.

“The road has multiple points of access to State Highway 1, with the nearest motorway interchanges at Greenlane and Ellerslie-Panmure.

“Many bus routes service the property, while the Greenlane train station is only a short 400m walk away.”

Herdson says the property’s substantial size makes it a strategic landholding with future redevelopment potential.

“Some of Auckland’s most desirable residential suburbs including One Tree Hill, Remuera and Newmarket are all nearby.”

Herdson says the site benefits from good amenities within walking distance, including bars and eateries, a medical centre and pharmacy, a Countdown supermarket, NZ Post, and Cornwall Park.

“With exceptional proximity to train, bus and motorway routes, the future residential redevelopment potential of this site is clear.”

The property has dual road frontage, with a boundary to Nolan Road to the rear of the property giving pedestrian access to the Greenlane train station.

The Business Mixed Use zoning is very permissive in terms of permitted activities, Herdson says.

“The zone allows for residential development, retail, food and beverage, entertainment facilities, up to 500sq m of office, retail tenancies up to 200sq m, and education and healthcare facilities,” he says.

“It also allows for the site’s existing use to continue. Commercial services, manufacturing, repair and maintenance services, and warehouse and storage are all permitted under the zoning.”

Peterken says owner-occupiers will appreciate the significant goodwill attached to the site.

“Many thousands of cars have been sold and serviced at the property since the first showrooms and workshops were developed in 1998,” he says.

“The site is home to central Auckland’s Hyundai and Isuzu franchises, located in one of Auckland’s most established car sales precincts.”

Green says investors will also appreciate the add-value opportunities arising from the short lease term.

“Demand for space along the Southern Corridor, of which Great South Rd is a key arterial, is at a near-record high. Local and overseas buyers are actively seeking out office investment opportunities in suburban areas such as Greenlane, especially as a lack of stock and in the central city ramps up demand.”