A pair of large properties on the market in Auckland’s Morningside epitomise the possibilities in a colourful mixed-use transformation sweeping the city-fringe suburb.
Over the past five years, Morningside has fast evolved from light industrial to a diverse and vibrant location for tenants and commercial property developer-investors – largely fuelled by the flexibility of the new Business – Mixed Use zone introduced under Auckland’s unitary plan.
This ongoing metamorphosis has breathed new life into the traditionally quiet bastion of warehouses and small factories, sprouting a host of cafes and restaurants, event and creative spaces and character offices.
The area also continues to draw strength from its excellent transport links and proximity to the CBD, other city-fringe suburbs and key amenities. A short drive south along Morningside Drive is the Westfield St Lukes Shopping Mall and surrounding bulk retail developments.
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Commercial property specialists from Bayleys Real Estate say the numerous refurbishments and repurposing projects that have shaped much of Morningside’s change to date are potentially just the beginning, with the new zoning favouring further intensification and redevelopment with multistorey buildings.
The two neighbouring sites Bayleys is now offering for sale occupy centre stage within the popular Morningside precinct and are home to a colourful mix of established tenants.
Sitting prominently on a large corner site near Morningside train station, a more than 1,600-square metre landholding housing the renowned Crave Café, along with Anytime Fitness and a Carpet Court showroom is on the market.
This landmark freehold property with two adjacent buildings at the corner of Morningside Drive and McDonald Street boasts around 80 metres of street frontage, dual access and all-day sun.
Crave Café is a social institution in Morningside. In 2016, it moved into the northern end of the former tyre shop at 6-8 Morningside Drive, which was converted specifically for the collective café in conjunction with the current owner.
The single-story building retains its industrial vibe, with a wide-open front entrance from McDonald Street. The café also features two function rooms available for hire. A separate entrance on Morningside Drive provides access to the Carpet Court showroom and a secure underground carpark.
The adjacent title, 20 McDonald Street, houses Anytime Fitness in a converted single-story warehouse with an added mezzanine level and off-street parking at the front.
Together, the two buildings offer some 1,511 square metres of lettable space generating a net rental return of $509,482 plus outgoings and GST per annum.
A few metres down the road another large site, Part 10 Morningside Drive, is also on the market. This more than 1,500-square metre freehold landholding contains four buildings with a combined floor area of some 1,290 square metres.
The premises are a mix of tastefully refurbished and upgraded high-stud character office, with two warehouse-style tenancies at the rear. They are fully leased to multiple tenants, however flexible lease structures provide opportunities for occupiers, add value investors and developers.
This property returns a net rental income of $308,677 plus outgoings and GST per annum, with noted potential to grow the rental through further refurbishment and redevelopment.
The corner site encompassing 6-8 Morningside Drive and 20 McDonald Street, and the neighbouring property at Part 10 Morningside Drive, are being marketed for sale through Alan Haydock, Damien Bullick and Phil Haydock of Bayleys Auckland Central.
The two properties are being offered by way of separate tenders closing on Tuesday 6 December, unless they are sold prior.
Alan Haydock, director of Bayleys’ Auckland City and Fringe team, said the properties and the projects that have shaped them embody much of what is possible with existing buildings under the area’s flexible mixed-use zoning.
“The quality and diversity of the tenants they’ve been able to attract speaks volumes about the inherent demand for this revitalised area on the city fringe, and of the potential that has been unlocked under the Auckland Unitary Plan,” he said.
As a CBD and city-fringe specialist with over $1 billion in property sales spanning two decades, Haydock said Morningside’s ongoing transformation exceeded anything the area had seen since its earlier development as a suburban hub of light industry.
Bullick said, alongside the development of the now iconic Crave Café, further examples of what could be achieved sit immediately next door, in the placemaking concept called Morningside Precinct, by innovative architect Nat Cheshire.
“This project started with a derelict curtain factory, upgrading and repurposing it into a variety of smart office and hospitality spaces which are now home to a lively and complementary mix of tenants,” said Bullick.
Phil Haydock said the area’s flexible mixed-use zoning encouraged diversity in building uses, from housing to a myriad of smaller-scale activities including office, retail, food and beverage, healthcare and visitor accommodation – as well as the warehousing and light manufacturing that previously dominated.
But the same zoning also provides strong scope for intensification, allowing much taller buildings, typically up to 18 metres. This has spawned sizeable clusters of multistorey apartment blocks, a number of which are planned or underway a short walk away in Kingsland.
“In Morningside, we’ve started to see the exciting breadth of possibilities; in future we may increasingly see the height,” said Haydock.
“In many ways, this suburb’s remarkable transformation has just begun.”
- Article supplied by Bayleys
