A block of flats for sale in one of Auckland’s most upmarket locations is tipped to generate competing interest among investors, land-bankers and developers.
The block of four well-presented two-bedroom flats lies in the heart of Herne Bay, whose housing prices consistently rank among the highest in New Zealand.
The flats are fully tenanted, returning combined annual gross rent of $126,880.
Intensive residential zoning, and a city-fringe location on arterial Jervois Road, will present new owners with attractive options for a multi-unit townhouse or apartment development.
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Placed on the market by its long-term offshore owner, the property at 181 Jervois Road, Herne Bay, Auckland, is being marketed for sale by James Were, Phil Haydock and Wei Wei Elder of Bayleys Real Estate.
Sale is by tender closing on Tuesday 12 July, unless the property sells earlier.
Were said the offering consisted of a well-maintained building of approximately 260 square metres underpinned by some 701 square metres of flat, fee-simple land.
“The flats have been refurbished to meet the Healthy Home Standards and each comes with its own power and water meter. Individually, they generate weekly rent of between $590 and $630.
“The building was re-roofed in 2015 and the driveway was re-sealed in 2011. The rear of the site provides for seven off-street car parks.
“Overall, the property presents in good condition and with its four residential tenancies, it offers a superb split-risk opportunity for investors,” said Were.
Haydock said the freehold landholding, in such a desirable and tightly held location on Herne Bay’s northern slopes, would also appeal to land-bankers seeking to capture future value growth.
“The rear of the property also presents a possible building platform for future development.
“The site’s development potential is maximised by its position within the Residential – Terrace Housing and Apartment Buildings zone under the Auckland Unitary Plan,” said Haydock.
This is a high-density zone that supports residential intensification in the form of multi-unit complexes. It targets areas around urban centres with good public transport.
The creation of townhouses and apartments is encouraged in this zone to ensure efficient use of land and infrastructure and boost the supply of housing.
The zone also seeks to give residents convenient access to services, employment, education facilities, retail and entertainment opportunities and open space.
Elder said Herne Bay’s small city beaches and quiet streets filled with both modern and heritage homes, many with sea views, helped make it one of New Zealand’s most prestigious locations.
“Close to the celebrated cafes and restaurants along Jervois and Ponsonby roads, and about five minutes’ drive from Auckland’s CBD, the Jervois Road site epitomises the advantages of city-fringe living.
“The exciting potential of this area for residential projects is demonstrated by the successful development of the Jervois & Lawrence luxury apartment complex at 165-167 Jervois Road, around 120 metres from the site for sale,” said Elder.
- Article supplied by Bayleys
