A block of single-storey suburban neighbourhood shops is being marketed as a "classic example of a future mixed-use residential and retail development such as highlighted in Auckland Council's Unitary Plan".
The freehold block of six adjoining shops at 1885-1897 Great North Rd in Avondale is for sale at auction on August 7 by the joint sales team of Mike Adams and William Coates of Bayleys Central Auckland.
"The shops are in the heart of a busy neighbourhood retail precinct and include a pharmacy, dairy, takeaway outlet, clothing retailer and ethnic food market," Adams says.
Building space totalling 372sq m sits on a 1068sq m site with a 2011 council rating valuation of $1.14 million under a Business 2 zoning, with seven car parks. Presently, the shops generate holding income of $64,200.
Adams says a variety of leases across six tenancies delivers a broad risk profile for an owner looking at this block for its investment returns.
"The non competing nature of each of the businesses within the block ensures some degree of compatibility, while strong, loyal, support by the surrounding community has built up a village-type feel to the wider Avondale shopping precinct."
Adams says Auckland Council's Unitary Plan released earlier this year was very specific in its call for increasing the number and scale of mixed-use buildings in suburban hubs close to transport routes and social infrastructure.
He said the Avondale property was stereotypical of such development opportunities and had been classified as town centre land for future zoning.
"The adjoining retail premises at 1885-1897 Great North Rd are the epitome of future mixed-use developments identified in the Unitary Plan, and subject to council approval, could sustain three or four levels of new apartment dwellings above the existing street premises," he says.
"The block has some 30m of prime street frontage above Avondale's retail hub, with the potential to acquire additional space at the rear.
Additional dwellings above the existing shops would enjoy substantial views over the nearby Avondale Racecourse.
"Any apartment development opens up the opportunity for having residential units in a variety of configurations with either main street or neighbourhood vistas.
"Its location on a main arterial route to and from the city underscores its prime position within Auckland's inner-western ring."
Social infrastructure in the immediate vicinity of the shops being sold includes Avondale train station with its links to the city.
The block of shops went up in the late 1930s. A report on the buildings' earthquake robustness is available.