Two prime commercial properties are being marketed for sale as one package or individually in the highly-sought after city fringe suburb of Grafton.
"The two freehold sites at 1-9 Park Rd and 118 Grafton Rd are right at the hub of Auckland's education precinct," says Reese Barragar of Barfoot & Thompson City Commercial who, with Ric Parore of the agency's residential sales, is marketing them for sale by tender closing at 4 pm on Thursday April 9 unless they sell earlier by negotiation.
"This sale represents a chance for prospective purchasers to break into this tightly held area by tendering for one or both of these neighbouring buildings," Barragar says.
The property at 1-9 Park Rd occupies a prominent corner site block occupied by retail outlets with residential flats above on 1068 sq m of land. Built in the mid 1920s the building is known as the Grafton Bridge Flats building.
Barragar says the four shops generate $121,627 annually in rent while the 19 flats above are earning $281,760 giving the building a total income of $403,387. "Most are monthly tenancies or have demolition clauses," he says.
At 118 Grafton Rd, the property for sale is a standalone two level villa with nine flats on 948 sq m of land that generate total rent of $126,360.
The flats are at the rear of the adjacent 1-9 Park Rd property and some of the tenants have been in occupation for more than 30 years.
"The combined land area of the two properties is 2016 sq m with a total holding income of $529,747 per annum including GST," Barragar says.
"The sites offer an ideal opportunity to developers and add value investors with the properties being close to Auckland Hospital and the University of Auckland. And the instructions are very clear - our elderly vendor says these properties must be sold," Barragar says.
Parore says that under the Auckland Council Operative District Plan the property at 1-9 Park Rd is zoned Business One and has a 10 metres height limit. "The Business One zone is applied to existing small centres, which can be found throughout the residential areas of Auckland City," he says. "It principally functions to satisfy local retail and service needs as typified by the shops within this complex that were prevalent prior to the mid 1960s."
However, under theProposed Unitary Plan it is zoned Business Local Centre, with a height limit of 16.5 metres.
"This new zoning provides for the local convenience needs of surrounding residential areas, including local retail, commercial services, offices, food and beverage, and smaller-scale supermarkets. The zone discourages single large-scale commercial activity that would prevent a mix of activities within the local centre," Parore says.
Under the council's operative district plan, 18 Grafton Rd is zoned Residential 7B with a 12.5 metre height limit. But under the Proposed Unitary Plan, it is in a Terrace Housing and Apartments Zone with a height limit of 14.5 metres if the building has basement parking or 13.5 metres without basement parking.
"As indicated by its title, the proposed new zone allows urban residential living in the form of terraced housing and apartments," Parore says. "It provides for the greatest density, height and scale of development out of all the residential zones. Buildings of four to six storeys are allowed, depending on the scale of the centre the zone adjoin. This new form of development will lead to a change from a suburban to urban residential character and a moderate to high degree of visual change over time."
Parore says that in recent years the Grafton city fringe location has grown in popularity with many businesses and residents due to its central position - not only to Newmarket, but also to the Auckland CBD. It is also close to a wide range of high quality amenity and services including to the Auckland Domain and both the main Auckland city hospital and Starship Children's Hospital.
"A short drive away is the 277 Westfield Mall in Newmarket while the ASB Tennis arena is just down the hill towards Parnell."
Nearby apartment developments include Summit on Symonds and Grafton Crossing.
What's on offer?
The property: Two Grafton commercial properties.
Location: 1-9 Park Rd and 118 Grafton Rd.
Agency: Barfoot & Thompson Commercial.
Sales method: By tenders.
Deadline: 4 pm on Thursday April 9
• For sale as one package or individually.
• Combined land area of 2016 sq m
• Total annual income of $529,747 including GST.
• New zonings under Proposed Unitary Plan.
• Ideal for developers and add value investors.