A substantial strategic landholding in the affluent Auckland suburb of Epsom, superbly located on a high-profile corner of Manukau Road, is on the market through Colliers International.
The Auckland Trotting Club has appointed Colliers' Investment Sales team to market two adjoining lots at 350 and 352 Manukau Road, next to the Alexandra Park Raceway complex.
The freehold site is for sale by expressions of interest closing at 4pm on Wednesday 16 October, unless one or both lots sell earlier.
Gareth Fraser, Auckland Director of Investment Sales at Colliers, says the offering will have immense appeal for investors, developers and land bankers.
"This is a nearly unprecedented opportunity to acquire one of the largest strategic landholdings in the heart of Epsom.
"The offering comprises a 5,851sq m site on the high-profile corner of Manukau Road and Campbell Crescent, both of which are key arterial routes.
"Business Local Centre zoning allows for mixed-use development of up to 18m in height, with permitted activities including residential, commercial, retail, accommodation or a mix of these.
"The site's current improvements comprise a convenience food restaurant and a service station, which are fully tenanted by well-known national brands Burger King and Caltex.
"The leases return a combined $422,000 in net annual rent, providing split-risk income for investors or holding income for land bankers or developers, allowing time to position the site for a future cycle.
"The lots are offered for sale either together or separately, providing a flexible range of options.
"Separate titles and staggered lease expiries make the site ideal for a staged redevelopment while retaining holding income.
"Whichever option a purchaser chooses to pursue, the site's superb location, regular shape and generous zoning allow for a multitude of add-value options."
Investment Sales Broker David Burley says the location provides exceptional access to main arterials, public transport and schools, all of which make it ideal for residential redevelopment.
"The site is strategically located on a high-profile stretch of Manukau Road, which enjoys huge exposure to passing traffic.
"Manukau Road is the main arterial route linking Newmarket to the north with Royal Oak and Onehunga to the south. It is serviced by numerous regular bus services with dedicated transit lanes.
"Nearby arterials include Market Road, which leads to Remuera, and Green Lane West, which links Greenlane with Epsom, Mt Eden and the western fringe suburbs.
"There is also excellent motorway access to State Highway 1 at Greenlane and SH20 at Onehunga, providing connections to the CBD and airport."
Burley says the surrounding suburbs of Epsom and Mt Eden continue to flourish, while the nearby city fringe suburb of Newmarket is undergoing significant residential, commercial and retail growth.
"The site's immediate locale is an established pocket of commercial activity, nestled within the predominantly residential suburb of Epsom.
"Neighbours include the raceway and convention centre at Alexandra Park, the Auckland Blues training facility, and several cafes and eateries.
"The Auckland Trotting Club is currently redeveloping part of its site into a complex of 246 apartments, of which fewer than 20 remain available. Stage 1 is due for completion by the end of February 2020, while Stage 2 is due to complete by the end of April 2020.
"The wider area is home to a Farro supermarket, offices, antique shops, motels, Cornwall Park and Greenlane Hospital.
"The site is in the coveted Double Grammar school zone and a short walk from two prestigious girls' schools, St Cuthbert's and Diocesan.
"Other schools nearby include King's Prep, Sacred Heart Primary, Cornwall Park and Epsom Normal."
As well as residential, the site would suit elements of office, retail, accommodation, or an integrated mixed-use development.
"The current low-vacancy office environment and high tenant demand, along with the surrounding area's amenity, would support elements of office in a development," says Fraser.
"The site also has natural appeal for retail or food and beverage, as evidenced by surrounding businesses and the site's existing use.
"High-demand for short-stay accommodation in the area would make the site ideal for a serviced apartment or boutique accommodation offering.
"An integrated mixed-use development could include some or all of these elements. The zoning allows for ground-floor retail with apartments, offices or accommodation on the levels above."
The corner lot at 350 Manukau Road comprises a 350sq m building on a 2,491sq m site.
Tenant Antares Restaurant Group Limited, trading as Burger King, is on a five-year lease returning $180,000 in net annual rent. The lease expires in February 2023, with two rights of renewal of five years each.
The adjoining lot at 352 Manukau Road comprises a 352sq m service station facility on a 3,358sq m site.
Tenant Bagia Petrochem Central Limited, trading as Caltex, is on a two-year lease returning $242,000 in net annual rent.
Final expiry is on 31 January 2021, allowing the site to be redeveloped in the near future.
The lease sets out clear obligations for the tenant to 'make good' on any potential contamination caused by its use of the site.