The Zone Apartments located at 3 Edinburgh St, Newton have suffered from water ingress issues and require remedial work. The property’s body corporate has put the 12 apartments, associated car parking and the underlying land holding of 528 sqm up for sale as one package.
Cameron Melhuish and James Were of Bayleys City & Fringe division have been appointed to offer the property for sale in an as is where is condition by tender closing 4pm, Thursday 11th November 2021, unless sold prior.
Melhuish says the purchaser has the option of repairing and modernising the existing premises or redeveloping the underutilised site.
The Zone Apartments were completed in the early 2000s and comprise 11 spacious two-bedroom units of 84sqm each and a generous sized one-bedroom apartment of 73sqm located in twin buildings with a courtyard between them. Each apartment spans two floors. There is parking for 20 cars in the building’s basement.
“Apartments of this size have appeal to both owner occupiers and investors and undertaking remediation works would provide an astute purchaser with the opportunity to sell down the upgraded apartments individually,” says Melhuish. “Reports detailing the property’s as is condition will be made available to parties who may be interested in pursuing this option.
“There would also be an opportunity to receive holding income from tenants who are currently living in the complex while consents are sought to develop the property.”
Melhuish says undertaking a different development is also a possibility. “It may be possible to utilise part of the existing structure such as the basement carpark or alternatively you could do a complete demolition job and develop a brand new building from scratch.”
He says the property’s City Centre zoning under the Auckland Unitary Plan means there could be potential to develop the site more intensively. The zoning permits a wide range of commercial and/or residential uses, with the height limit for this location being 15m and a floor area ratio of 3sqm of building for every 1sqm of land.
One of the most attractive attributes of the offering is its strategic city fringe position, says James Were. Edinburgh Street is a short street running off Karangahape Rd not far from its intersection with Ponsonby Rd, Newton Rd and Great North Rd.
“It’s within a short stroll of many of the popular restaurants and bars on K Road and Ponsonby Rd and Countdown’s Ponsonby supermarket, as well as being within easy access of all the buzz of the CBD.
“The property is also only a couple of blocks walk away from the City Rail Link (CRL)’s Karangahape Station, currently under construction, which will bring the CBD within even closer reach, with Aotea Station on Victoria Street being a three-minute train trip away and another three minutes to Britomart.
“The station will also generate further urban renewal within the surrounding area which will continue to grow and flourish. A laneway with boutique retailers and eateries will connect the station with East St, one street away from Edinburgh St, which will provide critical connectivity to the precinct west of the station entrance.”
Recent developments close to 3 Edinburgh St include the Urba, Hereford and Hopetoun Residences apartment buildings, a new office building occupied by ezy Vet and a large, refurbished character building with substantial frontage to Karangahape Rd that houses Tesla’s New Zealand head office and its showroom, a large wedding dress shop and Spaces co-working office accommodation.
A $30 million upgrade to Karangahape Rd was completed earlier this year. The project included widening footpaths supporting a better outdoor dining experience for local cafes, native plantings, separated cycleways on both sides of the street, bike parking, new street furniture and lighting and improved bus shelters and bus lanes.
“The Karagahape Rd precinct will undergo further rejuvenation and growth in the years leading up to and beyond the opening of the CRL station which is expected to continue to push property values up and there is an exciting opportunity for the new owner of 3 Edinburgh St to part of this,” says Melhuish.