The decontaminated site of a former service station is being offered for sale on the Te Atatu Peninsula with resource consent to erect a ground-floor retail area with 36 apartments above it.
"This freehold site is only 10 minutes to the Auckland CBD via the State Highway 16 Western Motorway," says Dave Palmer, commercial and retail sales agent with Barfoot & Thompson Commercial who, with colleague Agnes Teh, is marketing it for sale by auction at 10.30am on March 5 at the agency's Shortland St auction room.
The 3052sq m property at 543 Te Atatu Rd is zoned Living Environment and has a Special Area zoning.
"The site comprises a former petrol station that is currently leased until December this year and is being used primarily for storage," Palmer says. "The rental income and operating expenditure payments from the tenant are enough to cover the current Auckland City rates." The service station forecourt canopy is still there, as are the main retail area, former car wash, associated offices and a mechanic's area.
The property has been decontaminated and a 2007 letter is available to prospective purchasers with the findings, Palmer says.
The mostly level, square-shaped property has a wide frontage to Te Atatu Rd and a right of way with the neighbouring property. A bus stop is directly outside. A two-level property to the north is leased to the popular Luscious Cafe and there is an Indian restaurant on the ground floor and three offices on the first floor.
"The property represents the chance to buy a level, well-shaped mixed-use development site within a short drive of the Auckland city centre," Palmer says. "Similar sites in Grey Lynn have sold for up to 3000 a square metre.
"The big benefit of this site is the existing resource consent that allows for ground-floor retail with 36 apartments and associated ground and basement parking. Building upwards will allow east-facing views of the inner harbour looking back towards the Auckland CBD and harbour bridge.
"While Te Atatu is not Grey Lynn, it is the next motorway off-ramp and suburb after Pt Chevalier. The current housing stock on the Te Atatu Peninsula ranges from $400,000 to over $1 million while apartment sales sit in a very similar price bracket."
The proposal is for 443sq m of ground-floor retail space with four levels of apartments above and both basement and ground-level car parking. Of a total 88 car parks, 52 would be covered spaces in the basement, two would be designated for the use of disabled drivers and only six would be uncovered.
Palmer says the ground floor retail area is envisaged as two areas of 285sq m and 158sq m but this could be sub-divided.
Accommodation would range from 56.6sq m studios to three-bedroom apartments.
"Purchasers could look at modifying the consent to suit their residential requirements, or alternatively aim for a retail development, in consultation with the council," Palmer says. "There are only a couple of national brand retailers currently on the Te Atatu Peninsula, and over the past 12 months we have fielded inquiries from larger well-known national brands looking for a position here."
The property generates annual rent of $20,000 plus GST plus outgoings on a lease to Stomp Consultants, with a two-year lease with an expiry of December 14 this year. Rights of renewal are by agreement with the rent rising to $24,000 plus GST and outgoings after 12 months, allowing a buyer to benefit from a cashflow while planning redevelopment.
"This site at 543 Te Atatu Rd sits at the southern end of the Te Atatu retail and commercial area and was valued at $2,675,000 in July 2011," Palmer says.
"Te Atatu Rd is the single arterial route bisecting the length of the peninsula and has a measured traffic count of 30,000 vehicles per day. Major roading changes and future planned transport improvements will further enhance the Te Atatu Peninsula including the upgrading of Te Atatu Rd as part of the wider Western Ring Route Project."
What's on offer
The property: Freehold 3052sq m site of former petrol station
Where: 543 Te Atatu Rd, Te Atatu Peninsula
Agency: Barfoot & Thompson Commercial
Method of sale: Auction at 10.30am on March 5
*Resource consent for retail area and 36 apartments
*Faces major arterial road
*10 minutes' drive from central Auckland