A character property sitting on a sizeable landholding in the popular Auckland city fringe suburb of Mount Eden is being placed on the market for auction, offering purchasers a high yielding opportunity with passive management and development potential.
874 Dominion Road, Mount Eden is a two-storey building with 380sq m of total floor area on a 1,341sq m site that is zoned Residential – Mixed Housing Urban Zone under the Auckland Unitary Plan, providing significant potential for future development opportunities.
The property was originally constructed in the 1880s but was recently refurbished with a new roof and external painting and is currently used as a lodge for a government-related tenant. It has 15 rooms, each returning $550 per week, leading to a total annual rental income of approximately $429,000 including GST.
Strategically located, the property is close to Mount Roskill and Balmoral and provides easy access to nearby bus routes and local amenities, while Auckland’s CBD is only 15 minutes away.
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Dominion Road is landmarked as a strategic growth area with multiple apartment buildings under construction.
Huge exposure is experienced by businesses situated on Dominion Road with the daily traffic count topping more than 20,000 vehicles each way and it is well known for its popular eateries, creating a low vacancy area that is in demand with investors.
Colliers Brokers Ned Gow and Gawan Bakshi have been exclusively appointed to market the property for sale via auction to be held at 11am on Wednesday 26 July at Colliers North Shore, Level 1, 129 Hurstmere Road, Takapuna.
Gow, Investment Sales Broker at Colliers, says this high yielding asset presents prospective purchasers with a range of opportunities.
“With hands-off management systems in place, the new owner may choose to continue with the current business operations and enjoy the passive income available,” Gow says.
“On the other hand, there is significant value in the landholding and the long-term usage for the property may lend itself to a major development that includes intensification of the site given the favourable zoning.”
The Residential – Mixed Housing Urban Zone is a reasonably high-intensity zone enabling a greater intensity of development than previously provided for.
Over time, the appearance of neighbourhoods within this zone will change, with development typically up to three storeys in a variety of sizes and forms, including detached dwellings, terrace housing, and low-rise apartments.
Bakshi, Associate Director of Investment Sales at Colliers, says the location offers good access to the nearby motorway network, while the property is zoned for Mount Albert Grammar School and other popular local primary and intermediate schools.
“Mount Eden is one of Auckland’s most loved local precincts, boasting a huge array of retail and hospitality hot spots as well as hugely desirable residential developments,” Bakshi says.
“There is a number of different options a new owner could pursue with a property that has this much potential and we encourage all interested parties to contact us immediately.”
- Article supplied by Colliers
