"The high-profile site is well located in a popular low-vacancy area, with extensive frontage to Great South Rd providing huge exposure to passing traffic.
"A Business Mixed Use zoning makes the site ripe for a multitude of redevelopment options, including residential, accommodation, retail, commercial and hospitality uses, or a mixture of all of these.
"The property is fully leased to two tenants, earning a significant holding income of $361,000 per annum. This is below the current market rate, offering scope for upside, while demolition clauses in the leases provide flexibility for redevelopment.
"With its favourable zoning, solid holding income and prominent location, this is an excellent chance for investors, developers and land bankers to capitalise on the Southern Corridor's growth."
The property comprises two freehold titles, with standalone commercial buildings and about 25 car parks each. With a combined net lettable area of about 2125sq m, they are:
• A 1250sq m building, at 614 Great South Rd, comprising two levels of offices and amenities at the front of the site, with a warehouse at the rear. Orthotic Centre occupies this, the larger property. The company, which provides clinical and manufacturing services, is signed to a two-year lease earning $201,000 plus GST in annual rent. The lease expires in March 2020, with no rights of renewal or rent reviews. The lease includes a 12-month demolition clause.
•A 874.8sq m building, at 616 Great South Rd, comprising a showroom, amenities and warehouse. Evolution Cycles occupies this property, having recently been fully refurbished internally for use as a cycle shop, workshop and warehouse, and repainted outside. Evolution Cycles is signed to a new 10-year lease earning $160,000 plus GST in annual rent, with fixed annual rental reviews of 3 per cent. A six-year right of renewal extends the total lease term until June 2034. The lease includes a 12-month demolition clause, with the landlord to pay $40,000 plus GST if this is exercised within the first three years of the lease.
The buildings have reinforced concrete foundations with concrete slab floors, steel portal frames, concrete block external walls, and long-run metal roofing. Services include wall-mounted air conditioning and fire safety systems.
Child says they are well located for growth within a popular commercial, retail and residential area.
"This land holding provides exceptional access to main arterials, public transport, schools and amenity, making it ideal for a range of redevelopment options," he says.
"Great South Rd is a key arterial route that forms part of the Southern Corridor, connecting Newmarket, Greenlane and Ellerslie.
"This property is just north of Kalmia St, which provides access to the Ellerslie Train Station and town centre, a short 650m walk away.
"Main bus routes service the area, while State Highway 1 north and south is easily accessible at the Greenlane and Ellerslie-Panmure interchanges.
"Newmarket to the north is undergoing significant growth, while the immediate locations of Greenlane and Ellerslie continue to flourish."
Herdson says the property is 8.6km from the Auckland CBD and 15.6km to Auckland Airport. The site is easily accessible thanks to 55m of frontage to Great South Rd.
