A large warehouse/office site is up for sale ripe with potential for a multi-storey apartment project in a city-fringe hive of residential and commercial intensification.
The more than 1,300-square-metre property in Auckland’s Eden Terrace offers a versatile mix of multiple warehouse, office and storage areas.
The well-presented building sits on an elevated site overlooking Basque Park, around which a ring of apartments and townhouses is sprouting with superb access to city amenities and transport links – including a new City Rail Link (CRL) station.
Dual access from Exmouth and Norwich streets maximises flexibility for existing and future uses.
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The premises are partially leased to chauffeured vehicle provider TourCorp, upmarket design house Simon James and designer furniture and lighting supplier Resident.
The leases generate a combined annual rental return of $249,000 plus outgoings and GST.
Approximately 495 square metres of vacant space and parking areas offer a new owner the potential to add significantly to the existing return.
The property’s diversified income streams, immediate rental upside potential, and attractive long-term development possibilities are tipped to generate wide appeal among owner-occupiers, investors, developers and land-bankers.
The freehold land and buildings at 9-13 Exmouth Street, Eden Terrace, Auckland, are being offered for sale by way of an international tender, through Owen Ding and James Chan of Bayleys Auckland Central.
The tender will close on Thursday 2 May, unless the site is sold earlier.
The more than 1,900-square-metre standalone building sits on some 1,322 square metres of fee simple land with 29 car parks.
The split-level industrial building encompasses two levels of warehousing with separate roller door access, plus offices and basement storage. The upper ground level contains nearly 750 square metres of warehouse space with a 5.5-metre stud height and 150 square metres of offices.
The lower ground floor offers close to 350 square metres of 4.8-metre-high warehousing, office space and a staff cafeteria. Some 345 square metres of storage space with a stud height of 3.8 metres are contained in the lower basement.
The building has an A-plus grade Initial Evaluation Procedure seismic rating of 141 percent of new building standard. The exterior walls are constructed with concrete blocks and the roof has recently been repainted.
Ding said the site had a 30-metre frontage to Exmouth Street, a short through road connecting to arterials New North Road and Newton Road. Part of the Norwich Street frontage runs along the side of Basque Park.
“Buyers will be attracted by this site’s multiple options and upside. A new owner could refurbish, reconfigure and add value to the existing structure, maximizing potential rental returns.
“One of the key investment fundamentals is the large fee-simple landholding, which provides huge scope for development or as long-term land bank. Developers can look to take advantage of the strength of the city fringe as a residential location, popular for its convenience and access to amenities,” said Ding.
The Exmouth Street site falls within the coveted Business – Mixed Use zone under the Auckland Unitary Plan.
The existing warehouse and office uses are permitted activities under this flexible zoning, which also allows an array of other uses such as residential, retail, food and beverage and healthcare. Existing warehouses with a high stud are a rare find in the city fringe.
Chan, who heads Bayleys’ Auckland-based international sales division, said future redevelopment prospects at the site were underpinned by an allowable building height of up to 21 metres (subject to height overlays), five metres higher than typically allowed in this zone.
“This property is in a superb location looking down on Basque Park, an inner-city oasis around which a large cluster of apartments and townhouses is continuing to develop. Residents are attracted by the area’s abundant retail and dining offering, excellent transport connections and easy access to the city centre, universities and Auckland Hospital.
“The wider precinct is giving rise to a growing number of successful residential developments, adding to a mix which also includes office, retail and light-industrial premises.”
Chan said the area would reap benefits from completion of the CRL, including a redeveloped Maungawhau/Mount Eden Station – a key junction linking the Western Line with Britomart and new underground stations at Karangahape Road and mid-town.
“The CRL will enable a doubling of rail network capacity, with an ability to move 50,000 people an hour at peak times. This is expected to stimulate significant commercial and residential real estate activity around key stations,” Chan said.
- Supplied by Bayleys
