For the first time in 12 years, an Auckland city fringe freehold commercial property is for sale in the heart of Newmarket with a single short term-tenancy in place.
"It offers the purchaser a blank canvas with many options," says Cam Paterson of Barfoot & Thompson Commercial who, with colleague Kim Loo, is marketing 1 Melrose St for sale by tender closing at 3pm on Thursday, March 22 unless it sells prior to that date.
Paterson says the high-profile, rectangular, flat and strategic site of 364sq m has a width of just over 12m and a depth of just under 30m. It is occupied by a single-level polished concrete and exposed brick building of 363sq m with a mezzanine floor.
"It's 35 metres south of Khyber Pass, a major inner city arterial adjoining Newmarket and Newton, with quick access to the on-and-off ramps of the southern motorway section of State Highway 1. Only 400 metres from Grafton train station, the property is just 340 metres from Broadway - Newmarket's main retail strip.
"The building has excellent natural light and is divided into two self-contained tenancies. However, it could be opened up for one large single larger tenancy and a buyer could increase the property's retail appeal by refurbishment," he says. "Then there's the option of redevelopment, to take advantage of the favourable Mixed zoning and nearby schooling."
The Business - Metropolitan Centre Zone - Mixed zoning under the Unitary Plan normally allows development to 72.5m but this property is restricted by a volcanic viewshaft overlay to a height of 59m or around 19 levels.
"The zoning encourages centres to act as focal points for intensification, community interaction, commercial growth and as hubs for high frequency transport services," Paterson says.
"It allows for a wide range of activities including retail, leisure, high-density residential, tourism, cultural, community and civic functions.
"Permitted activities include dwellings, integrated residential projects, aged care facilities, visitor accommodation, retail, commercial services, entertainment, cinemas, offices, education facilities, light manufacturing and warehousing."
An area of 215sq m is leased to Sage Lifestyle until July 19 paying $78,750 plus GST per annum with the other area of 175sq currently occupied by Textiles 'n Things which will be vacating prior to settlement.
Loo says 1 Melrose is within an increasing desirable precinct of smaller commercial buildings that were once used for manufacturing and warehousing.
"The area has grown in intensity and older buildings have been redeveloped into mainly office, showroom and retail spaces," he says.
"Due to the double grammar school zoning and closeness to the CBD with excellent public transport services, residential development in the surrounding area is also now commonplace.
"There are several nearby large-scale developments which will further enhance the location including the University of Auckland's new mixed educational and residential campus on the opposite side of Khyber Pass."
Loo says other big developments in the vicinity include the expansion of Westfield's 277 Broadway store to about twice its previous size; the development of 33 Broadway by Manson TCLM with Mercury as anchor tenant; and the redevelopment of The Warehouse site on the Broadway Central Rail Loop.
"The property at 1 Melrose is strategically located between two stations, Broadway and Grafton; about 400 metres away from both," he says.
"The neighbourhoods surrounding Newmarket like Remuera, Epsom and Parnell, are some of the most affluent in New Zealand. In recent times these areas have seen an increase in population density as more intensive residential development takes place which bodes well for the future demand of both tenancies and properties in Newmarket."