An aerial view of 43 Carbine Rd - the orange fronted building and rear yard at lower centre foreground. Photo / Supplied
A big 2.2ha freehold property, which previously served as a New Zealand Post sorting and distribution depot, is for sale in Mt Wellington, immediately next door to Sylvia Park.
"This site offers immense potential," says John Bedford of CBRE who, with colleagues Bruce Catley and Claus Brewer, is marketing 43 Carbine Rd for sale through a deadline expressions of interest campaign closing on Wednesday August 1, unless it sells earlier.
Used as a bulk storage facility since 2009, the property is for sale with vacant possession.
"It's one of the most exciting development opportunities to come to the market this year," Bedford says. "This sale comes at a time when Auckland Council is focused on developing suburbs across Auckland to cater for growth. The site adjoins the Eastern Rail Line next to Sylvia Park, and could well become a suburban equivalent of the Auckland CBD's City Works Depot or of trendy Ponsonby Central.
"Its size and closeness to a well-established commercial hub, coupled with its up-zoning potential, gives the site a wide range of possible future uses including a mix of retail, hotel, residential and commercial buildings.
"It's development prospects have been further strengthened with the site's height limit having been increased under Council zoning from a standard 16.5 metres to 27 metres which allows for a gross floor area potential of around 27,000sq m."
Bedford says he expects interest in the Carbine Rd property from adjoining owners, investors and strategic holders of other significant property assets in the neighbourhood, who will understand the site's long-term investment prospects.
"This property has been on the radar of various groups wishing to add it to their portfolios for some time."
Brewer says well-located blocks of land the size of 43 Carbine Rd consistently hold their strong underlying value in Mt Wellington which is one of the most popular commercial precincts in Auckland.
"They don't come up for sale in this tightly-held stretch of land very often," he says. "Properties from the South Eastern motorway flyover, to the Coca-Cola Amatil manufacturing plant at the end of Carbine Rd, have been held in their current ownership for a long time."
Catley says the key to the future of the site for sale is the possibility of 'up-zoning'.
"The site is currently zoned Business – Mixed Use under the Auckland Unitary Plan and forms part of a cluster of similarly-zoned Mixed-Use sites to the east of the railway line. This zoning already provides for a wide variety of activities including residential, offices and retail along with a range of other activities. It also benefits from an additional height variation control, which permits a total maximum height of 27m of which 25m can be 'occupiable'.
"However, it is highly likely that an enhanced zoning could be adopted by Auckland Council in due course. Either way, this site offers considerable development flexibility in a rapidly growing location, right next to the significant Sylvia Park landholdings of Kiwi Property."
Catley says the site also offers the prospect of interim holding income through the short-term leasing of the warehouse and large rear yard until a phased development or conversion is undertaken.
"We have undertaken some preliminary work with architects to investigate and understand what's possible for the site. Taking into consideration the various options for alternative use on the site, we have looked at possible Mixed-Use schemes.
"One is for a residential, retail and office new build comprising three blocks with seven levels per block. This envisages a total of 315 apartments – with 15 apartments per level, – plus 4300sq m of ground floor retail and office space."
Catley says the stand-out feature of the Carbine Rd site is the wide diversity of options it presents. "For example, a purchaser may be able to build a hotel at the back of the property in an undeveloped area, while undertaking planning to create a City Works Depot-styled Mixed-Use development for the whole of, or part of, the front of the site.
"The site may also be suitable for a small to medium size hotel, with the nearest hotel being the Waipuna Hotel and Conference Centre.
"The property is relatively close to Auckland Airport, compared to many hotels in Auckland, and is connected to other parts of the region via State Highway 1 and key arterial routes.
"The landholding also has the potential to complement the retail offering at Sylvia Park by providing a destination cluster of retailers, similar to that of Nuffield Street or The Pavilions at Britomart. While shopping malls benefits from agglomeration, specialist stores are destinations that customers seek out for a 'bricks and mortar' experience. The wider Mt Wellington area is currently lacking this type of retail destination, and the site for sale provides an ideal opportunity to capitalise on the well-established retail appeal of neighbouring Sylvia Park."
As a further example of the diversity of options offered by the site, Catley says the site is well placed to benefit from the boom in suburban apartment development.
"A record 843 suburban units were constructed during 2017, which is more than the CBD and City Fringe precincts combined. The property at 43 Carbine Rd is well positioned to take advantage of a trend toward suburban apartment living, due its ease of access and nearby retail and service amenities.
"The dramatic shortage of housing in the greater Auckland area over the past five years has driven demand to intensify fringe suburbs such as Mt Wellington. Recognition by Auckland Council, as evidenced by the rezoning of traditional industrial precincts to Mixed-Use, is a clear demonstration of the Council's intention to build up these areas.
"The site for sale is a prime example of a location where residential construction could be pursued by developers and house buyers alike within walking distance of excellent facilities."
Catley says there is also potential for a mix of offers. "The highest and best use of the site is likely to encompass several market sectors. In the meantime, it could offer short-term income while a larger scale development is contemplated."
Brewer says another feature of the property is the location of the Sylvia Park train station at the rear of 43 Carbine Rd. "Not only does the site stand alone on its own merit due to its scale, but because of its closeness of the train station, the site could - subject to approval - be connected into the existing train station. This would open it up to be serviced by public transport, which in turn would open up further uses."
Brewer says properties in the Mt Wellington area are likely to be developed for more intensive activities due to the expansion of local amenities and improved motorway and public transport services.
"We envisage that, over time, the conversion rate will increase, particularly due to the fact that there is a residential enclave close by to the north-east, with the Panmure Lagoon beyond this."
