Grey Lynn car yards development site

The 1727sq m block of freehold land at 667-671 Gt North Rd. Photo / Supplied

A large Grey Lynn car yard site is being promoted to the market as a prime residential development site.

The 1727sq m block of freehold land at 667-671 Gt North Rd is zoned Terrace Housing and Apartment Building; but it presently encompasses four dwellings operating as the administrative offices for a trio of second-hand car sales yards.

Bayleys Auckland is selling the land and vacant buildings by a deadline private treaty, with offers closing at 4pm on June 6.

Agent Graeme Sun says the Auckland Council Terrace Housing and Apartment Zone allows for the intensification based on Grey Lynn's closeness to the city, and the supporting town centre amenities.

Depending on height-to-boundary and floor plans, apartment blocks of five-to-seven storeys (and up 16-metres-high) may be built within the zone.

Sun points out that the property has resource consent for construction of 62 one and two-bedroom apartments in blocks up to five storeys tall. This also allows for the allocation of 46 basement carparks.

"As a main arterial route linking Auckland CBD with the city's inner-west suburbs, apartment development 'creep' has been evident along Great North Rd over the past eight years. Apartment blocks are now visible from the Ponsonby and Karangahape Roads intersection right through to Grey Lyn. Development on this property could become an extension of that ripple effect as it continues to move west," says Sun.

"The Auckland Unitary Plan was the catalyst for the reconfiguration of inefficient land across Auckland, pushing for greater intensification of land as and when it came up for redevelopment. The site totally delivers on town planners' visions for a more compact living format based around existing suburban centres."

Sun says under the council's zone definition, the site could be also developed as a boutique retirement village.

"With council consent already existing for the construction of 62 apartments, there is an opportunity for a new owner of the site to determine the ultimate price point for any resulting apartments," says Sun.

"That could be influenced by altering the number of dwellings — potentially adding three-bedroom configurations, and even penthouse suites to the mix, or alternatively building 'entry level' units targeting first home buyers and investors.

"With Grey Lynn village and its full range of retail amenities less than a kilometre away, all is in place for the latest apartment development in the area."

Sun says at present the property derives $123,100 of gross rental income per annum from the various car sales dealerships on site. The periodic leases for all tenancies are on termination notices ranging from 10-90 days.

"While the leases are all periodic, the tenants have each expressed their willingness to stay as long as possible in Great North Rd, which has sustained used car dealerships for many years," Sun says.