Large landholdings in the strategically-located city-fringe suburb of Morningside are tightly held by a collection of owners, elevating the value of emerging opportunities, Bayleys salespeople say.
Bayleys City and Fringe team director Alan Haydock says the location has transcended its light industrial roots to become an attractive precinct for investors and tenants, well-serviced by public transport, amenities and a growing residential catchment.
He is marketing a tenanted corner opportunity at 6-8 Taylors Road and 2-4 Gordon Road. The properties are offered for sale individually or together by tender, closing at 4:00 pm on Tuesday, 5th December 2023 (unless sold prior).
“Within walking distance of the Morningside Train Station, the subject properties benefits from Business – Mixed Use zoning, which allows for intensive and diverse development options up to a height of 18 metres.
“At the same time, the incoming government has pledged to strengthen rules that enable mixed-use development and intensify transport corridors through additional density, which should continue to enhance the location, underpinning competitive demand dynamics for investors and developers.”
Mr Haydock is marketing the premises for sale with Bayleys colleague Damien Bullick.
Two refurbished industrial-style buildings on 2,554sq m (more or less) of freehold land present a significant opportunity to purchase a city-fringe land parcel in three titles, with strong tenant covenants.
The standalone buildings are fully occupied, returning a combined net annual rent of $526,997 plus outgoings and GST.
Commercial lighting and fit-out specialists Novii occupy the 977sq m (more or less) premises at 6-8 Taylors Road with a six year lease to October 2028, generating net annual income of circa $270,910 plus GST.
High-end lighting and furniture retailer ECC has a five year lease to September 2027, plus one five year renewal right for the 999sq m (more or less) tenancy at 2-4 Gordon Road, which it utilises as a storage and distribution base.
The lease returns a net annual income of circa $226,120 plus GST.
Lease provisions include fixed rental growth and a landlord-friendly lease structure allowing for long-term investment and development potential.
Bayleys City and Fringe team associate director Damien Bullick says the property’s configuration, which supports independent tenancies, provides a split risk opportunity for future leasing, with scope for development.
On the corner with Gordon Road, 6-8 Taylors Road comprises a warehouse and office building with crossings from both Taylors and Gordon Road.
Both warehousing and offices have been refurbished to a high standard and feature multiple entry points with roller door access.
At the rear of the site, 2-4 Gordon Road comprises a warehouse building of predominantly open-plan warehousing plus recently refurbished offices and amenities.
“As well as being a desirable passive investment proposition, one of the key value fundamentals of this underdeveloped site is its future development potential,” Mr Bullick says.
“The scale, underlying mixed-use zoning, and a north-facing corner position allow for high-density residential, commercial or mixed-use development.
“Given Morningside has been identified as a key area for residential growth, with existing and evolving public transport infrastructure, it lends itself for ready development in the medium-term, adding to the appeal of the strategic site as an add-value opportunity with flexible use options,” he says.