The rejuvenation of Onehunga on the back of flexible usage zonings and the insatiable demand for housing is underpinning the strength of the commercial property market in the accessible Auckland suburb.
Seasoned developers are scoping out opportunities in Onehunga, buoyed by the interest and speedy sell-down of several recent apartment complex developments and further backed up by plans for the significant urban regeneration of Onehunga by the Council-aligned entity, Panuku Development Auckland.
The demand for, and uptake of, space in the new Woollen Mills light industrial business park on the Penrose-Onehunga border also shows the appetite for industrial space in the area.
A fully-tenanted commercial investment offering close to the main retail and business strip, Onehunga Mall, has been placed on the market for sale by auction and will go under the hammer with Bayleys at 11am Wednesday 2nd June, unless sold prior.
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The freehold land and buildings at 49 Princes Street, have been occupied by the Onehunga branch of automotive retailer Repco Limited since 2008.
International corporate GPC Pacific Limited, trading as Repco Limited, which has more than 400 stores through Australasia, has a 10-year lease commencing February 2015 with one, two-year right of renewal and rent reviews every two years.
The property returns a net income of $129,000 per annum plus GST and outgoings.
Marketed by a team headed by James Valintine of Bayleys South Auckland, the well-located 1,365sqm site supports a 554.14sqm building comprising a 377.5sqm trade retail showroom, 89sqm warehouse, plus 87.5sqm office and amenities space, and good off-street parking.
Valintine said while the property is fully-leased to a longstanding tenant that has traded successfully from the site for 13 years, the underlying Business - Town Centre zoning of the land holds the key to its market appeal if the early stages of the marketing campaign are any indication.
“Although the property is undoubtedly pushing the buttons of future owner-occupiers and more-traditional investors, the true value of the property lies in the future potential of the land, so developers are siting up and talking notice,” he said.
“Business - Town Centre zoning generally allows for a 27-metre height limit and that being the case, the site is clearly underutilised with its current single-level trade and retail function – albeit, occupied by a well-established business.
“Based on the timely sell-down of numerous higher-density residential developments in the immediate area, this site is very likely to be earmarked for similar projects by a proactive new owner.”
Multi-level residential developments in the neighbourhood include Fabric and Beachcroft Residences.
“The private equity company behind the popular Fabric residential project, Lamont & Co., are embarking on another development on the site of the former Onehunga Working Men’s Club along Onehunga Mall,” said Valintine.
“This will create 102 new premium apartments to be known as The Onehunga Mall Club, and, with the suburb identified by Council as one suitable for growth and intensification, we’d expect to see other similar projects follow suit.
“Residential intensification, along with a revitalised town centre itself, means Onehunga will well and truly come of age in the next five to 10 years.”
Access to State Highway 1 lies slightly east of the property, while State Highway 20 is accessed via the Neilson Street on-ramp nearby.
