A large freehold commercial property with favourable development options and school zones in the city fringe suburb of Epsom, has been placed on the market for sale by its long term owners.
The prime 2,103sqm site at 3 Margot Street, which runs parallel to main arterial Great South Road, supports a partially-leased 1,602sqm standalone three-level office building and 31 off-street car parks.
Agents say the property has flexible options for add-value investors, developers, owner-occupiers and landbankers.
The property is within the double grammar school zone (DGZ), has Business-Mixed Use zoning, and also falls within the Newmarket Walkable Catchment area which allows for higher-density residential development in-line with the National Policy Statement on Urban Development that champions growth in key nodes.
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The Walkable Catchment designation typically allows development to a minimum six storeys, allowing more people to reside within easy walking distance to work, shops, services, schools and public transport hubs.
There are currently multiple tenants on varying lease terms across the 1980s-constructed office building, returning net annual income of $222,554 plus GST.
This creates a split-risk opportunity for investors who may look to refurbish and add value, or flexible options for owner-occupiers with potential to occupy the majority of the building in the short to medium term.
The property is for sale by tender through Alan Haydock and Damien Bullick of Bayleys Auckland Metropolitan Markets team, closing 12th March, unless sold prior.
Bullick said this is a flexible property with potential waiting to be unlocked by a wide range of prospective purchasers.
The shortage of quality office stock in the immediate area, a continued demand for quality office premises, and the fluid leases in place here means that a motivated investor/developer could refurbish and upgrade then relaunch to the occupier market with a vastly-improved product.
Owner occupiers could potentially transition to the building, taking up additional space themselves or re-leasing surplus space as existing tenancies roll over, or developers could leverage the location and favourable zoning classification to create something entirely new for the site.
Given the easy access to amenities, public transport and motorway networks, proximity to the Newmarket retail precinct and CBD, and DGZ drawcard, Bullick said developers will recognise the inherent value of the 2,103sqm site which is under-utilised and could unlock residential opportunities.
With due process explored, the site could be cleared and a medium-high density residential development undertaken.
The fundamentals for such projects are gradually improving with surging net migration numbers for Auckland, and indications that house price growth could rebound this year.
This is a good-sized flat site which is not subject to volcanic view shaft retention overlays that can limit maximum allowable building heights in other parts of Auckland, and has capacity for 100% site coverage.
Haydock said Epsom has always resonated with buyers and typically, property is hotly-contested.
With this property being in zone for Auckland Boys and Epsom Girls Grammar Schools, and with population growth happening, a residential conversion could also make sense.
DGZ is music to buyers ears and helps protect property values through market cycles.
A land banker could view this site as a residential opportunity waiting to happen and be prepared to navigate office leasing options to provide holding income while they ride out any remaining bumps in the development market and pursue options.
- Supplied by Bayleys
