Tasty redevelopment site near Vinegar Lane
The two level building and freehold site for sale at 20-22 Pollen St, Ponsonby.
A Ponsonby property occupied by a print factory and offices is being marketed for sale as a potential Auckland city fringe development site less than 100 metres from the $220 million Vinegar Lane and Cider Building construction sites.
“Few redevelopment sites of this nature are available in the commercial heart of New Zealand,” says Nick Hargreaves, managing director of JLL, who with Ian Hall, commercial sales and investment agent for JLL, is selling 20-22 Pollen St property on behalf of DNZ Property Fund via an international marketing campaign.
“We expect this rare 1960 square metre freehold site will generate a significant level of interest from both investors and developers,” Hargreaves says.
The property is of a standard rectangular configuration having an equal frontage to Pollen Street to the east and MacKelvie Street to the west. Fifty secure basement parking bays are accessed from MacKelvie St while four visitor car parks spaces are accessed from Pollen Street.
In addition to the basement parking, the 2271.27 square metre net lettable building area, including balcony and loading bay, has a ground floor with a main entry and reception area along with some partitioned and open plan office space towards the Pollen St frontage. To the rear of the ground floor is warehousing and processing space. Cart dock access to the warehouse is in the southern corner with access off Mackelvie St. The ground floor has an approximate stud height of 3.2 metres with suspended ceilings and raised floors to part of the processing area for machine cabling.
First floor offices are accessed via the main reception area with a further stairwell off the staff cafeteria providing access down to the ground and basement floors. The offices with suspended ceilings, ducted air conditioning and the staff cafeteria have a timber balcony extending from the southern elevation.
The toilet facilities and air conditioning on the first floor and to part of the ground floor were recently upgraded and/or replaced in recent times.
The building was constructed around 1986 to a specific design for the lessee who was then the owner. Construction comprises reinforced concrete foundations, reinforced concrete pier and beam with concrete block exterior walls, part plaster cladding and part glazed wall, aluminium joinery and long run galvanised mild steel roofing. Internally the property has reinforced concrete flooring, a mixture of suspended ceilings with acoustic tiles, air conditioning, fluorescent lighting, and heat and smoke detection systems throughout.
The building has been assessed as having an Initial Evaluation Procedure (IEP) assessment of 99 per cent of New Building Standard (NBS).
The property at 20-22 Pollen St in its city fringe setting and defined by a red border.
The fully occupied buildingearns a passing net rental of $433,040 per annum on a lease to Gravitas Media (formerly Colorite Group) expiring on August 17 next year due to the tenant having exercised the surrender date.
Zoned Mixed Use, the property is within a precinct designed to provide a diverse and compatible mix of residential, business, educational and leisure activities, close to a central area or existing town centres.
Hargreaves says the sale is timely due to stronger economic conditions, buoyant commercial property market and the continued expansion of Auckland which is driving demand for CBD fringe developments sites to new levels.
“With the current and likely future intensification of central Auckland, there is a high level of appeal in the CBD fringe and particularly in Ponsonby which has a large range of amenities including traditional strip retailing, bars, cafes, restaurants and residential accommodation.” Regular bus services run along Ponsonby Rd and Great North Roads connecting the Auckland City just 2.5 kilometres away with the western suburbs. The Pollen St property also has good nearby access to both the State Highway 1 north-south and State Highway16 northwestern motorways via the Fanshawe St, Pitt St and Newton Rd on ramps.
“This is a classic example of a property that will benefit from the surrounding urban renewal and significant redevelopment in the area.”
Hargreaves says the nearby 14,000 sq m Vinegar Lane and Cider Building developments within the Pollen St, Williamson Ave and Crummer Rd block is likely to be a key catalyst in revitalising the area.
The commercial and residential development is being constructed on land formerly occupied by a DYC Vinegar factory and will also be zoned Mixed Use in the Proposed Auckland Unitary Plan. It will encompass a Countdown supermarket, a variety of specialty shops, showrooms, offices, apartments and five levels of underground car parking. The Mixed Use zoning will allow for both commercial and residential uses on the same site and is indicative of an area that is in transition from a commercial precinct to a residential one.
Hall says the site is within a development arch extending from Karangahape Rd to the top of Ponsonby.
“This whole area is projected for significant redevelopment throughout this property cycle and the next,” he says. “Vinegar Lane is expected to stimulate a huge transformation of the location, leading to major urban renewal and triggering neighbouring properties to come onto the market for sale or to be redeveloped entirely.”
Hall cites Statistics New Zealand figures for the Waitemata local board area (LBA) in which the property is located that forecast an increase in population from 81,300 in 2013 to 106,900 in 2023 - a growth of 25,600 residents and an increase of 31 per cent.
“With an average household size of 2.3 persons this growth is the equivalent to an additional 11,130 dwelling units in this area between 2013 and 2023 which constitutes a high level of supply to meet the demand.”
Hall says the expansion within the Waitemata LBA is expected to equate to nine per cent of the Auckland Region’s total growth over the 10 year time frame.
Nick Hargreaves (left), and Ian Hall (right) of JLL.