Big development opportunity on doorstep of CRL station

A central Auckland development site offering spectacular harbour and CBD views is up sale with the added bonus of a lease for at least the next two years to the company that is building the City Rail Link.

Located at 17-27 Beresford Square, with substantial frontage also to Hopetoun St, the freehold 1,777 sq m land holding comes with a City Centre zoning. This enables the most intensive commercial and/or residential development permitted under the Auckland Unitary plan – up to a height limit of 35 metres.

The entire site is currently occupied by City Rail Link Limited which is using it as a base for the construction of the nearby giant underground Karangahape station. It has a lease of up to five years from November 2019 (with a break clause provision after four years) which is generating annual net rental income of $755,250 plus GST.

The offering is one of the trophy listings in Bayleys Real Estate’s sixth Total Property portfolio for 2021. Bayleys Auckland City & Fringe Division agents Alan Haydock and Damien Bullick have been appointed to market the property by tender, closing at 4.00pm, Wednesday, September 9, unless sold prior.

“This is a must-view for all developers and land bankers with an eye for the future,” says Haydock. “It represents an unparalleled opportunity to acquire a truly prime CBD fringe development site located in an unobstructed, north-facing corner position in one of Auckland's hottest growth locations.

“Adding to the offering’s appeal is the CRL lease which will provide a substantial cashflow while the next owner works on plans and obtains the necessary council consents and any sales or leasing commitments required for a development to proceed. In particular, it increases the land’s attraction for residential developers who often face significant periods of no income from vacant sites while sufficient apartment pre sales are secured to trigger development funding.”

Haydock says no demolition of existing buildings is required which is very unusual for a development site which is producing income. A reinstatement clause in the CRL lease requires the site to be restored a similar state to what it was before their occupation when it was used as a tiered open air carpark.

The property’s City Centre zoning permits a wide range of commercial and residential uses. It has a basic floor area ratio of 4:1 up to a maximum of 6:1 and a height limit of 35m, although there is a volcanic viewshaft restriction of 27-30m over some parts of the site.

Damien Bullick says the offering is one of only a few quality larger sites which remain available for development in the inner city.

“The elevated position and sloping nature of the property enhances its development flexibility and means that it could be possible to include lower level parking without too much excavation being required. The site offers stunning, wide ranging views which can’t be built out across Hopetoun St and the motorway system to the harbour and the CBD and landmarks such as the harbour bridge and Sky Tower. This makes it ideal for residential development, perhaps with some boutique retail, food and beverage or other commercial space at street level.

“The property is metres from Karangahape Rd and a short stroll away from Ponsonby Rd, two of Auckland’s most popular shopping, dining and hospitality precincts, as well as being within walking distance of the CBD. All of this increases its appeal for residential dwellers which is reflected in the large cluster of nearby apartment buildings that have sprung up along or close to the Hopetoun Street ridge line.”

Haydock says the other obvious advantage of the site is its proximity to the City Rail Link’s Karangahape station, being constructed under the intersection of Karangahape Rd, Pitt St and Mercury Lane. The station’s Beresford Square entrance will be within a minute’s walk of the property.

The station, scheduled for completion in 2024, will be the CRL’s deepest at 33m underground and have 150m long platforms stretching from Mercury Lane to Beresford Square. It will link with the Britomart transport hub in the CBD via a station at Aotea Square and also connect with existing western line at a new Mt Eden station.

It will take only three minutes to get from the Mt Eden to Karangahape station, three minutes from there to Aotea station, on Victoria Street, and another three minutes to Britomart.

“The CRL will drastically reduce travel times to and from K Road, making it a desirable inner city location for businesses, workers and residents alike,” says Haydock.

“Perhaps as importantly, Karagahape station will unlock additional high-density residential and commercial activity and generate further urban renewal within the surrounding area which will continue to grow and flourish.”

An estimated 400 residents, 200 dwellings and 100 jobs will be added to the K Road precinct according to City Rail Link Ltd. Once the station is completed, land on which the Mercury Plaza was located on will also become available for new development. A laneway with boutique retailers and eateries will be created that connects Mercury Lane with East Street which will provide critical connectivity to the precinct west of the station entrance.

Beresford Square and Pitt St are also expected to be rejuvenated by the station’s opening. Beresford Square is a short street which runs between Hopetoun St and Pitt St, close to the latter’s intersection with Karangahape Rd which has recently undergone a $16 million enhancement project which has included the addition of cycle lanes.

The surrounding area contains a mix of recently developed apartment complexes and original character buildings. The neighbouring property contains the 142-year-old Hopetoun Alpha hall, which has a NZ Historic Places Grade 1 classification and was sold in 2019 for $4,000,000 by Haydock and Bullick.

In addition to many nearby bus links, the property is also a short drive from multiple motorway on-ramps to both the southern and north western motorways.

- This article was supplied by Bayleys