Single block with potential for many uses

By Colin Taylor

Character site in popular Mt Eden will have strong appeal for three different buyer groups, agents say

Artist's impression of redeveloped site at 30-40 Enfield St, Mt Eden, based on prepared concept plans.
Artist's impression of redeveloped site at 30-40 Enfield St, Mt Eden, based on prepared concept plans.

A large mixed-use Mt Eden character property with appeal to three different groups of buyers and with plans for a retail and apartment development is on the market.

"This is a sizeable piece of real estate that is increasingly hard to come by in popular Mt Eden," says CBRE's senior director of capital markets, Warren Hutt, who, with colleague Harold McCracken, is marketing the property at 30-40 Enfield St for Arena Investment Management.

Hutt says the three-level vacant office and retail building is being sold by way of private deadline treaty with a closing date of Thursday, April 3.

"The property was constructed in the 1950s on a prominent corner site on Enfield St and Mary St and has excellent street frontage of 88m to Enfield St," he said.

"The building, which had an extensive refurbishment in 2002, has a generous net lettable area of 3281sq m and occupies a rectangular freehold site of 3750sq m zoned mixed use.

"The ground floor has a retail space of 338sq m and a warehouse of almost 460sq m. A mezzanine floor and levels 2 and 3 contain offices ranging in size from 182sq m to 1047sq m.

"It's also a north-facing site, which means any offices or residences developed on the site would benefit from good natural light.

"With balconies on levels 2 and 3, tenants could sit outside and soak up the afternoon sun with a glass of wine on Friday afternoons - a real drawcard."

Hutt sees three investment avenues for investors and developers that include significant value-added opportunities.

For this reason, he said, several parties had shown interest.

"A demolition consent has been issued by the council which means a smart developer could quickly demolish the building and create a new state-of-the-art city fringe office facility or residential complex," he says.

"Commercial and residential space is in short and declining supply throughout Auckland, and buyers and tenants are clamouring for city fringe office space and new apartment developments."

Hutt said the architectural firm JASMAX had created concept plans and drawings for the development of a building with three commercial or retail areas and 67 apartments.

"Some developers may look to create a more intensive and lucrative development that will maximise their margins."

An astute developer could secure a short-term tenant to generate income while planning is in progress for a complete demolition and overhaul to create maximum value.

McCracken said the site's Auckland Grammar zoning and proximity to Diocesan and St Cuthbert's schools would be a lucrative drawcard for buyers if it was redeveloped into a residential apartment facility.

The second group to whom the property could appeal were owner-occupiers.

"The property presents stylish character space for owner-occupiers to buy and upgrade to a higher New Building Standard level and then occupy the building," Hutt said. "This would suit a variety of occupiers, including companies, churches and educational organisations.

"This building has character and personality and offers opportunities for an organisation to stand out and make a statement via its premises.

"With essentially no vacancy for CBD office space, organisations are increasingly looking at the fringe as an attractive, more cost-effective location from which to base their operations. The property has excellent rail and bus connections and is close to motorway connections and major arterial routes including Mt Eden Rd."

McCracken said the third group who could be attracted to the building was property investors.

"They will see the potential to upgrade the building and then rent it out," he said.

"With strong ground-floor retail presence and stylish character spaces above, the building offers good potential for a mix of revenue streams.

"As a strategically located city fringe location, Enfield St is minutes away from the CBD, Newmarket and Mt Eden Village. Eden Business Park adjoins the property and the area has become home to several high-end retail brands including Sabato, Cita and Bo-Concepts."

- NZ Herald

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