An industrial property on the fringe of Auckland's central business district - with consented plans to develop commercial and residential units - has been placed on the market.
The 1219sq m freehold site at 25 Hargreaves St, Freemans Bay, and the fully tenanted two-level building on it are being jointly marketed for sale by tender through Kris Ongley of Colliers International and Scott Kirk of Bayleys Auckland. Tenders for the property, which is featured in Colliers International's Portfolio publication and Bayleys' Total Propertymagazine, close on March 8.
Ongley says the property has a recently granted resource consent for a six-level Mixed Use building. "The approved plans involve retaining, altering and adding to the building to accommodate a commercial and residential development," he says.
This would encompass four ground floor retail or commercial units with a total lettable area of 536sq m and 29 two-bedroom apartments above. It would also include 33 carparks - 28 for apartment owners and five for the commercial units.
"The new owner could activate this consent or pursue their own plans for the site," saysOngley. "The consent is valid until late November, 2021 which gives a purchaser plenty oftime to consider future options while benefitting from a good cash flow provided by the property."
Kirk says the 1420sq m building is producing net annual rental income of $241,341 fromfour tenancies plus four periodic car park leases.
"The tenancies comprise three workshop and warehouse leases, with three-to-six-year termsbut all with six-months' notice demolition clauses, and a periodic residential tenancy on part of the upper level of the building. The short-term termination provisions of all these leases further enhances the property's development flexibility."
The ground level of the 1970s' building comprises 657sq m of light-industrial and workshop space and ancillary offices. Workshop access is via four roller doors.
The upper level has a 284sq m residential tenancy, with 478sq m of medium-stud warehousing at the rear. A ramp on the western edge of the building provides vehicle access from Hargreaves St to the upper level and a rear car parking area.
The building has reinforced concrete foundations and flooring; concrete column and beam internal structural framing; and concrete block walls. The upper level has a steel clear-span portal roof structure supporting galvanised iron roofing.
The premises has an independent Initial Evaluation Procedure (IEP) seismic rating of 36 per cent of New Building Standard (NBS). "A significant improvement in this rating would be achieved through execution of the redevelopment plans," says Kirk.
The property is on the north-western corner of the intersection of Gudgeon St and Hargreaves St. It has about 30.5m of frontage to Hargreaves St and 40.5m fronting Gudgeon St which runs off College Hill; close to its intersection with Beaumont St and Victoria St West.
The site is zoned Mixed Use under the Auckland Unitary Plan. Kirk says this zone is typically located along rapid and frequent transport service networks. It also acts as a transition area, in terms of scale and activity, between residential areas and the City Centre(CBD), Metropolitan and Town Centre zones.
"The zone provides for residential activity as well as predominantly smaller scale commercial activity but does not specifically require a mix of uses on individual sites," says Kirk. "New development within the zone requires resource consent to ensure it is designed to a high standard which enhances the quality of streets within the area and open public spaces."
Ongley says one of the property's obvious strengths is its location. "It is perfectly positionedat a point where Auckland CBD's commercial centre meets some of the city's most exclusive residential addresses. It sits just off College Hill and Freemans Bay on the CBD's western fringe, with St Marys Bay, Ponsonby and Herne Bay - among Auckland's premier residential suburbs - just a short distance away.
"The site has easy access to the motorway system while Victoria Park reserve, Wynyard Quarter and the Viaduct waterfront are all close. Within walking distance is Westhavenmarina and numerous community recreational and entertainment facilities. A New World Supermarket is only a block away and popular retailing areas are nearby along Ponsonby Rd, Jervois Rd and in the CBD. All of this increases the property's development appeal, particularly for apartment living."