A versatile commercial premises occupied by a karate dojo and three other tenants is generating interest amongst investors eager to maximise the site’s preferable zoning fundamentals, Bayleys brokers say.
The two-storey building occupies a prime corner site totalling 1,012sq m (more or less) of freehold land in Business – Metropolitan Centre zone at 13 Puriri Street.
Owen Ding of the Bayleys Asian Markets team says the property’s position in one of only a few intensively zoned areas across the Auckland region will be a significant attraction for investors.
“There are only 10 major urban areas across Auckland with a Business – Metropolitan Centre zoning in terms of overall scale and intensity of development permitted.
“The zone provides for various activities, including commercial, tourist, high-density residential, and civic services. These centres are second only to the city centre in scale and intensity and act as focal points for commercial growth and development around high-frequency transport hubs.
“Intensive zoning fundamentals provide significant upside potential for a new owner should they wish to undertake value-capture improvements or transform the entire site through complete redevelopment to better utilise the 72.5m build height.”
Ding is marketing the property for sale by tender process, closing at 4:30 pm on Thursday, 21st September 2023 (unless sold prior), with colleagues James Chan and Alister Hitchcock.
The property features a 995sq m (more or less) internal floorplate comprising a mixture of offices and workshops with roller door access on the ground floor and separate office accommodation above.
There is also parking for 18 vehicles.
The property generates an attractive split-risk income of $133,296.65 net per annum.
Two automotive tenants occupy the ground floor accommodation with leases of two and five years, respectively, while a professional business and karate dojo have two and three year leases for the tenancies on level one.
Bayleys National Director for Asian Markets James Chan says the opportunity to collect income from several tenants safeguards against potential revenue disruption.
“Low vacancy rates and high demand for well-located accommodation has seen average rental rates rise, providing income growth potential and a resilient hedge against inflationary pressures.
“Investors focused on long-term financial growth and security have been carefully reviewing their balance sheets, trading in underperforming assets in favour of properties with a preferable mix of strong zoning provisions and the capacity to generate immediate income.”
The property is approximately 10 kilometres southwest of Auckland’s city centre and a short distance to the New Lynn train station and Kiwi Properties’ LynnMall retail development.
Bayleys Northwest broker Alister Hitchcock says significant investment over the last decade has transformed New Lynn into a thriving urban growth area focused on transit-oriented development.
“The New Lynn rail station is one of Auckland’s key transport interchanges and the busiest rail station by passenger volumes on the western line.
“More than 1.6 million commuters travel via this station each year – set to increase with connection the City Rail Link – New Zealand’s largest ever transport infrastructure project set for completion in 2024.
“A rapidly evolving residential catchment encircles the subject property, and it is at the epicentre of a thriving commercial precinct. The established location gives it a natural edge for development.
“However, the ability to collect a multi-faceted income will add appeal for land bankers, developers and add-value investors seeking a foothold in this thriving area.”