A rare investment opportunity has emerged on a prime corner site adjacent to Parnell’s dynamic village precinct, presenting a chance to collect immediate income and occupy while exploring avenues for future development.
Bayleys Auckland Metro Markets director James Were and colleague Ben Wallace are marketing the 579sqm (more or less) freehold site at 10 Heather Street for sale by tender, closing at 4:00 pm on Tuesday, 3rd December 2024 (unless sold prior).
Were says the property’s versatility and strategic location provide a powerful lure for purchasers re-engaging with the market.
“With its corner location, city skyline views, and a position parallel to Parnell Road, the site offers an attractive mix of accessibility, income, and visibility supported by flexible zoning permissions.
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“Recent market volatility has made investors more responsive to properties that can adapt to changing conditions. The subject property’s location within the 'double grammar school' zone and designation as Business – Mixed Use enhances its appeal.
"The benefit of a 27m height overlay is that it provides further development opportunities, aligning with market trends that prioritise adaptive reuse and diversification of urban spaces.
“This opens the door for potential residential conversion, particularly given the high level of local community amenities and a location amongst some of the best-preserved character dwellings in the area.
“The property also features 18 designated car parks – an increasingly desirable commodity on the city fringe – enriching usability for tenants and customers.”
Comprising 519sqm over two levels, the Heather Street property features carparking and two storage lockers at lower ground level accessible via a driveway entrance off Cheshire Street.
The building, constructed in the 1970s, is well-maintained and features a mix of partitioned offices and workspaces across two floors, with both levels fully self-contained.
Bayleys Auckland Corporate Sales & Leasing director Ben Wallace says the vacant top floor is ideally suited for an owner-occupier looking to secure a foothold in Parnell.
"With the ground floor tenant in place, the 255sqm (more or less) upper level offers an opportunity for an occupier to move in, immediately benefitting from a position in one of the city’s most desirable mixed-use precincts.
“The ground floor tenant – an audio engineering school – occupies 252sqm (more or less) of the space on a lease that runs to February 2025, with renewal options extending to 2031.
"This provides a stable income for the new owner, while the market rental valuation of $232,537 net pa on a fully leased basis highlights the significant upside for those looking to further develop or fully lease the building.
“Parnell is one of Auckland’s most prestigious locations, and it continues to perform as a thriving commercial and residential hotspot.
"The subject property’s address near essential amenities like the Parnell Train Station, Auckland City Hospital, motorway interchanges, and the CBD enhances its appeal for the widest user pool – whether they’re looking for a foothold for their own business or a strategic addition to their investment portfolio.
“Today’s purchasers demand assets that deliver strong short-term performance with the potential for adaptability and growth.
"This property exceeds those credentials, providing a solid foundation for immediate returns with various options for future expansion. We expect significant interest from investors – both add-value and strategic, owner-occupiers and developers drawn to the high-calibre opportunity in an area always in demand.”
- Supplied by Bayleys
