Kingsland property’s wide appeal

3:14 PM Friday November 17, 2017 True Commercial

The character building at 615 New North Rd. Photo / Supplied

A character commercial property for sale in the sought-after Auckland city fringe suburb of Kingsland offers favourable zoning that will appeal to investors, developers and land-bankers.

Colliers International brokers Jonathan Lynch and Simon Child are marketing 615 New North Rd for sale by deadline private treaty closing December 12, unless sold earlier.

Lynch says the 1,682sq m freehold property offers generous Business Local Centre zoning, which allows for a mix of commercial, retail and residential development of up to 18m.

“Superbly located directly adjacent to the Morningside train station, this large L-shaped property offers 28 off-street car parks with dual access from both New North Road and Western Springs Road,” he says.

“The character building fronting New North Road was originally constructed in the 1920s and principally used as the Mount Albert Borough Council Chambers.

“The building at the rear was constructed later in the 1980s.”

Lynch says the property is currently on a three-year lease to the Auckland District Health Board (ADHB), which has occupied the property for more than 25 years.

The lease is returning more than $200,000 in net annual rent, with two-yearly market rental reviews.

“With close proximity to key public transport hubs, the property will appeal to investors, developers and land-bankers seeking favourable zoning and options for future development.”

Lynch says the property is superbly located at the western end of Kingsland town centre, which is among Auckland’s most coveted city fringe suburbs.

“In recent years, Kingsland has become one of Auckland’s most vibrant destinations with residents able to enjoy a mixture of quality food and beverage offerings, and local retail and commercial services,” he says.

“The suburb’s appeal has been driven in part by investment in transport infrastructure in recent years, including upgrades to the Morningside and Kingsland train stations, and the electrification of the rail network.

“The City Rail Link is set to make the suburb even more accessible by boosting capacity on the Western Line, which will cut travel times and increase the frequency of services.”

Child says tenant demand for office space in metropolitan Auckland, including the city fringe, is at an eight-year high.

“A lack of stock and competitive pricing is being fuelled by owner-occupiers and investors,” he says.

“Historically low interest rates are projected to continue into the near future, causing further downward pressure on yields. Vacancy rates in the city-fringe are nearing record lows.”

The property is located within the Business Local Centre zone, which primarily provides for local retail, commercial services, offices, food and beverage, and appropriately scaled supermarkets.

“Provisions typically enable buildings up to four storeys high, enabling residential use at upper floors.”

The property is currently tenanted by ADHB Community Mental Health, which provides a range of services for adults with moderate to severe mental illness or psychological distress.

A three-year right of renewal extends the current lease term to October 2023.