Views and value in Grafton Rd
The two-level brick building at 125 Grafton Rd has 17 car parks.
Colliers International brokers say an elevated freehold property with stunning views will be hotly contended by developers and land-bankers.
The 1028sq m site at 125 Grafton Rd is for sale by tender, with offers closing October 6 — unless sold earlier by negotiation.
Colliers International broker John Davies, who is marketing the property with colleague Kris Ongley, says it is a solid development prospect with valuable short term holding income.
“From a development perspective, this site has numerous strengths. It is naturally elevated with great views north and west, well-proportioned with a long north-facing boundary and strategically positioned between the CBD, Parnell, Newmarket and Auckland Domain,” says Ongley.
“It returns a healthy holding income from five tenants. Its zoning also allows a wide range of activities including commercial and residential developments, offering huge potential,” Davies adds.
The property is positioned on the western side of Grafton Rd, close to the intersection with the Grafton Bridge and Park Rd. It currently houses a tidy two-level brick building sitting roughly in the centre of the title, surrounded by a perimeter vehicle access way and 17 car parks.
The building has six separate commercial premises of about 95sq m each. Five of the units and 14 of the car parks are leased earning a combined net rental of $123,341.66. Fully leased, the total net income would be around $160,000. All leases contain developer-friendly terms, with four leases having six month demolition clauses and the fifth having a final expiry date of October 5, 2017.
Davies says Auckland’s well-known population growth and pressures on existing commercial and housing stock make this site an appealing prospect. “The city is desperate for an increase in property development to cope with growing population so 125 Grafton Rd is nicely positioned for commercial or residential development, including a building catering to the tertiary education providers in the vicinity,” he says.
Grafton is an established central city suburb, being home to Auckland Hospital, the country’s biggest hospital; Auckland University Medical School and the Auckland Domain and museum.
“It also has the Symonds St campuses for Auckland University and AUT an easy walk across Grafton Bridge from the subject property.” says Ongley.
The site already boasts impressive views, either north down Grafton Gully towards Rangitoto and over the CBD, or west towards the Waitakere Ranges.
“Views from the upper levels of a development would be world-class,” Davies points out.