The 1,836sq m freehold site at 77 Carlton Gore Road, Auckland, is being marketed by CBRE brokers Warren Hutt and Jonathan Ogg by deadline private treaty closing at 4pm on Tuesday May 25.
It is thought to be one of only a small handful of remaining sites with near-term redevelopment potential located along the southern side of Auckland Domain, says Hutt.
“Properties with views overlooking Auckland Domain with potential for redevelopment in the near future are extremely scarce. There are very few opportunities to acquire a development site like 77 Carlton Gore Road, which offers superb north-facing views over the Domain,” he says.
“This scarcity factor makes this property a highly compelling opportunity for residential developers as well as a whole host of other potential buyer types.”
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A mixed-use development comprising high-end apartments and ground floor retail/café space is one example of a potential project which could suit the location, which is arguably the best on the city fringe, Ogg says.
“The site’s size, zoning and location opposite Auckland Domain could be ideally suited to a boutique apartment development of around three to four levels in height. Apartments on the upper levels would command spectacular and uninterrupted views over the Domain, the War Memorial Museum and the wider Auckland CBD skyline.”
The property’s proximity to Auckland Hospital and the University of Auckland medical school could also make it suitable for a healthcare-related development such as medical suites or specialist consulting rooms; while the neighbouring well-established office precinct could also suit an office development, creating a strong potential value-add proposition, says Hutt.
“The site’s Business – Metropolitan Centre zoning is highly favourable and accommodative of a wide range of potential uses. It’s a fantastic development opportunity and there will undoubtedly be many buyers out there with a strong vision for its future use.”
Currently occupied by three tenants, the existing building on the site contains 1,159sq m of floor area across two levels. The upper level is accessed directly from Carlton Gore Road, while the basement level also benefits from access and signage from Carlton Gore Road in addition to access from the rear. A total of 35 car parks are located on the site.
Three street-front retail units are leased to Santos Coffee Roasters, Alpha Lighting and Brews liquor store. The basement unit was previously occupied by a gym and is now vacant, potentially making the property suitable for an owner-occupier.
Income from the three tenants amounts to $157,606 net a year. A potential 12 month vendor underwrite on the vacant unit could also provide holding income while the new owner undertakes planning or negotiates a lease with a new tenant, Ogg says.
“Taken as is, this property is an attractive income-generating holding which is likely to appeal to individual investors, family trusts and small syndicates. Among the attractive fundamentals for this buyer group will be the strong underlying land value, high-demand location and good car parking provision, as well as the potential for future value uplift as Auckland’s growth continues.”
Carlton Gore Road remains a highly sought after business location with plenty of development in recent years, says Hutt.
“Carlton Gore Road and the wider Newmarket commercial precinct have really taken off, with major developments such as the Auckland University engineering school and the redeveloped Westfield mall reinvigorating the area significantly.”
Among the multitude of local amenities are Grafton Station (a three minute walk from 77 Carlton Gore Road) and on & off ramps to the Southern Motorway at nearby Khyber Pass Road. The location also offers recreational facilities including Auckland Domain and Newmarket Olympic Pool, as well as countless retail and hospitality outlets, Ogg says.
“People living and working in this part of Newmarket have a plethora of options for shopping, entertainment and recreation on their doorstep. With the Auckland central business district only a 10 minute drive or short bus or train journey away, it’s not surprising that Newmarket continues to be one of the most popular metropolitan areas in central Auckland for residential and business property owners and tenants.”
