Character villa reaps potential of city fringe

The character cottage at the rear of 199 Mt Eden Rd is rented to an artist. Photo / Supplied

A large character villa at 199 Mount Eden Rd containing commercial and residential tenancies in Auckland's Grammar Zone has been placed on the market for sale.

The building sits on a total land area of 547sq m and is being marketed for sale by auction on August 3 by Clint Barber and Rachael Pittaway of Bayleys Auckland.

In addition to the main building, there is a 30sq m three-room cottage at the rear of the site, which is leased to an artist.

"Five income streams from commercial and residential tenancies ensure a versatile and low-risk investment for this Mount Eden villa in the Auckland Grammar zone," Barber says.

The Mt Eden Road property has a rateable value of $1.030 million and is fully tenanted to a mix of professional and residential occupants generating an annual income of about $75,100.

The standalone, two-level 1930s villa is prominently positioned opposite the Normanby Rd intersection with Mt Eden Rd.

"These types of properties are rarely available and are in short supply," says Barber. "There is a shortage of commercial and residential investments in the Mt Eden area and this property could provide an opportunity for a purchaser to own and occupy, or develop the site further with surplus land at rear."

The tenancies within the main 250sq m two-level villa comprise a boutique legal practice, which has been based there since 1983, and a medical services clinic leased to Bay Audiology. On the first floor, there are two separate two-bedroom residential tenancies.

The villa and cottage are serviced by parking directly in front of the property and five carparks at the rear accessed by a right-of-way.

Barber says the nature of the property is stereotypical of the type of business premises that were highlighted in the Auckland Council's Auckland Unleashed discussion blueprint circulated earlier this year.

"Fringe residential dwellings have been gaining council consents for conversion into professional services or home-business premises, such as medical centres, pre-school facilities, accountancy firms or legal practices for a number of years now," he says.

"It is a practice that has the tacit support of the council. What were once clearly defined industrial/commercial and residential boundaries have now become grey 'mixed use' zones. Section sizes and building structures have tended to self-govern the availability of this type of expansion."

Barber says Mt Eden and Kingsland are seeing this "professional premises conversion-creep" and the trend is particularly evident along the Mount Eden Rd arterial route due to there being no suitable premises for development in the Normanby Rd precinct nearby.

"Small companies look for character and heritage style locations with the added benefit of no-charge on-site parking amenities," he says.

Barber says that, while the 199 Mt Eden Rd building has two residential tenancies upstairs, these could be converted for a single small-to-medium-sized commercial tenant or for a larger area for a residential tenant.

Pittaway says numerous infrastructure services, particularly in the hospitality and food service sectors, have grown to support the quickly growing Normanby Rd and Mt Eden professional services hubs.

"The building at 199 Mt Eden Rd is well located, minutes from Mount Eden Village on a well-serviced public transport route for rail and bus options," she says.

"As well as having the large, flat carparking facility at the rear for staff, there is excellent parking to the front for customers and clients, which is a rarity in this area."

Pittaway says the surplus land at the rear has substantial growth and added value development potential along with the property having a sound investment income from established tenants. A purchaser could also choose to occupy the property themselves.