A commercial and industrial premises on an L-shaped site with dual road access in the city-fringe suburb of Grey Lynn presents a flexible opportunity for investors to capitalise on the strong demand for well-located accommodation while recent up-zoning underpins future development potential.
The 1,628sqm (more or less) site features drive-through capability with access via critical arterial Bond Street, which provides a link above the north-western motorway connecting Grey Lynn to Kingsland, and the western end of Dean Street.
Bayleys salesperson Jean-Paul Smit says the property is in a superb position to take advantage of myriad flexible use options, including owner-occupancy, redevelopment, or installing tenants to collect income from several lettable areas and a mixture of commercial and industrial accommodation.
“Tightened global conditions mean investors are applying a strategic lens to current purchases. However, there’s no shortage of capital in the market, and investors are hungry for flexible properties in high-growth locations.
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“The recent up-zoning of certain areas across the region has given investors greater impetus to seek add-value opportunities, which for owner occupiers, could be through redevelopment further down the track.”
The building comprises 1,310sqm (more or less) across two floors, and Smit says there is limited availability and supply of properties of this scale for owner-occupiers in city-fringe districts.
“The flexibility presented by a versatile property, with available warehouse, showroom and office options is desirable given low-vacancy rates for industrial accommodation across the city.”
Smit is marketing the property for sale by tender, closing at 4pm, Tuesday 18 October 2022 (unless sold prior) with Bayleys Auckland City & Fringe colleagues Alan Haydock and Mike Adams.
On the ground level of the property, 837sq m (more or less) comprises a mixture of office, showroom and high-stud warehousing with multiple roller door access points.
Primary vehicle access is directly off Bond Street, which opens into an asphalt sealed car park comprising 19 marked spaces, circling to the rear of the premises and accessing the ground floor warehouse.
Elizabeth Michael Uniforms is currently occupying the ground level on a short-term lease at a net rental of $176,383 plus GST per annum.
“The 473sqm (more or less) vacant office on the upper level is partly refurbished, providing an open-plan blank canvas with good natural light and west-facing views toward the Kingsland area and Eden Park,” says Haydock.
“The premises could be easily split into three tenancies accessed through separate street entrances already in place, providing a diversified cash flow for an investor and maximising the property’s potential rental return.
“An owner could also occupy part of the property and rent out the adjoining spaces to help offset financial obligations,” Haydock says.
The property is in Business – Mixed Use zone, which permits development to 18 metres.
Adams says mixed-use zoning along this part of Great North Road, introduced under the Auckland Unitary Plan, allows for moderate to high-intensity residential and commercial development.
“Neighbouring buildings include several high-quality projects, comprising ground floor commercial accommodation and luxury apartments above, that have sprung up along the ridgeline following the introduction of the unitary plan and aided the rejuvenation of the precinct.
“A higher proportion of commercial operators are opening doors to high-spec showrooms in the area, including European furniture retailer Ligne Roset, Kiwi appliance brand Fisher & Paykel, and Australian household retailer Harvey Norman.
“Both Fisher & Paykel and Harvey Norman have set their premises apart as premium centres which serve their customers’ design and build needs above and beyond the traditional retail storefronts.
“These high-end occupiers, along with planned residential developments including Ockham Residential’s new 155-apartment development The Feynman, Covington’s 36-luxury apartment development The Grey, and Conrad’s Hadlow, all on the Grey Lynn stretch of Great North Road, are indicative of a robust pipeline of planned future growth for the area,” Adams says.
- Article supplied by Bayleys
