Parnell stalwart has location on its side
The freehold property at 465-467 Parnell Rd exudes old world charm.
A two-level early-1900s’ Parnell villa, empathetically converted for office use, would suit investors and owner-occupiers keen to secure a presence in one of Auckland’s preferred commercial neighbourhoods.
The freehold property at 465-467 Parnell Rd is being marketed by Cameron Melhuish of Bayleys Auckland Central and Jenny Kek, Bayleys Remuera. Featured in Bayleys’ first Total Property portfolio for the year, it will go to auction on Wednesday March 8 unless sold earlier by negotiation.
The well-maintained freehold offering comprises 421.87sq m of total floor area over dual levels, off-street car parking and a 612sq m landscaped site with established trees and hedging.
“This is an elegant character property, enhanced by its strategic location in the double grammar zone between Parnell village, and the Newmarket commercial and tertiary education hub,” says Melhuish - adding there is already a good level of inquiry on the property.
“It’s a building that has stood the test of time and transitioned from residential usage to functional commercial premises with ease. Strong tenant demand for properties with integrity and locational benefits, coupled with the favourable underlying zoning which would allow for future development, make it stand out in the current market.”
At ground level, the main door opens into a reception and waiting room area while adjacent, is a large boardroom complete with the original fireplace. The rest of this level consists of a photocopying room, large open plan office area, bathroom and kitchen facilities. Many of these areas open out onto decking.
There are three main office spaces on the upper level — some open out on to covered verandas. Also on this level is a fully self-contained 45sq m loft-styled flat with kitchen, laundry, toilet and bathroom facilities and a bedroom-lounge area above.
The elegant character property, at centre, is enhanced by its location.
Melhuish says the property is fully-leased by international cargo and ship management company Oceanic Navigation which has been in occupation since 2004.
“Oceanic Navigation has exercised its final renewal on the existing lease which was entered into in 2010 and finishes in early April 2018,” he says.
“The property currently earns $91,600 net per annum, subject to review with an increase likely, and all outgoings are paid by the tenant.”
Under the Auckland Unitary Plan the property is zoned Residential — Terrace Housing and Apartment Buildings. This is a high-intensity zone enabling a greater level of development than previously provided for and designed to make efficient use of land and infrastructure.
“While the zoning inherently will allow for future higher-density development on this site, the existing character villa has intrinsic merit and positively adds to the Parnell streetscape,” says Melhuish.
“They’re not making these character buildings anymore and the Parnell precinct has a special flavour with its links back to Auckland’s early settlement. There is a core investor sector seeking out buildings with personality and soul — like this one — and giving them status within the commercial property market.
“This property could continue to have a purposeful life in its current guise despite inevitable urban progress and intensification.”
The practical and functional layout of the property with two levels offering separation and privacy gives it broad appeal to the tenant market. Melhuish believes an investor owner could readily lease the property in an individual or multi-tenant capacity with minimal capital input.
“Equally, the owner-occupier market will recognise the innate value that a property like this has to offer their business or residential needs,” he says.