A development site in a highly sought after location in Epsom, Auckland, consented for an apartment and terraced housing complex, has been placed on the market via CBRE.
103-105 Great South Road, Auckland, is being marketed by CBRE Auckland Metropolitan Investment Sales brokers James Lee and Deborah Dowling. It is for sale by deadline private treaty closing at 4pm on June 16, unless sold prior.
The 2076sq m freehold site is currently home to a three-level, 1980s office building with 34 car parks, partially leased to four tenants.
However, the site’s location and existing consents make it an “exceptional” opportunity for a new owner to develop a multi-unit residential project, says Lee.
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“This property’s scale, road frontage, zoning and location make it an excellent candidate for residential development. It is located on the Newmarket fringe in a truly central hub with quick access to parks, schools, retail, services and the Auckland CBD, making it a highly sought after location for developers.”
With the existing owner having already done most of the hard work in achieving approved resource consent for a planned residential development, the property presents a rare opportunity to acquire a compelling value-add project and carry it through to completion, Dowling says.
“Many developers will identify this location as ideal for higher-density residential, and with consented plans already in place, the process to completion will be significantly faster and more straightforward compared with starting from scratch.”
Approved resource consent is in place for a two-building apartment development containing 72 units, along with an additional six terraced houses at the rear of the site and 82 basement car parks. Total building area of the planned development is 9,732sq m.
One of the apartment buildings is designed to be four levels, with the other three levels. A roof top garden and three office spaces are also planned for the apartment buildings.
While the approved plans are for three and four-level buildings, the current owner has also explored options to intensify the site further following the government’s National Policy Statement on Urban Development 2020 (NPS-UD).
This policy statement directs local authorities to enable greater supply of housing in areas which are well serviced by public transport, amenities and services, says Lee.
“The owner has already drafted up scheme plans for possible building heights of six and 10 levels to include more apartments on the site, should Auckland Council implement more accommodative intensification rules in this locality in line with the NPS-UD.”
The property generates holding income of around $150,000 gross a year from four sitting tenants on short-term leases, providing flexibility for the new owner, Dowling says.
“The holding income is likely to be considered a useful bonus among potential buyers who may elect to hold off on their development plans until Auckland Council has announced any plan changes in response to the NPS-UD. This would enable the buyer to redesign the development to incorporate more apartments, if plan changes are implemented.”
The property is on Business – Mixed Use zoned land, which is a highly accommodative and flexible zone favoured among developers as it provides for residential use along with smaller-scale commercial activity.
It is located on the edge of the Newmarket commercial precinct, which is known as a vibrant, popular and rapidly-changing area with several new retail, commercial and residential developments well underway and recently completed.
The site also sits within the high growth node of Epsom, which is under strong demand from home owners and developers, says Lee.
“The property is within the sought-after double grammar zone, benefits from excellent transport connections and motorway access, and is also located midway between Maungawhau/Mount Eden and Maungakiekie/One Tree Hill, providing accessible green space and opportunities for outdoor recreation.”
