An oldie but goodie … quiet location enhances multiple options

5:00 AM Saturday December 6, 2014 Colin Taylor

This vacant warehouse os for sale at 14D Haultain St, Mt Eden.

An older Mt Eden vacant, mixed use warehouse and office complex in the Auckland city fringe presents multiple options for its buyer including eventual redevelopment into an apartment complex.  

Peter Kermode and Jonathan Lynch of Colliers International are marketing the industrial property at 14D Haultain St for sale by auction at 11 am on Tuesday December 16 unless it sells earlier by negotiation.

The 1980s building is of solid, concrete block and steel construction with a five metre high stud warehouse running down one side covering 192 sq m. The other half of the building incorporates a 73 sq m low stud warehouse and 78 sq m of office and amenity space on the ground floor. Directly above on the top level is 154 sq m of open plan offices.

“The beauty of this freehold unit is its closeness to the inner-city market but within a hideaway location at the end of a quiet cul-de-sac,” says Kermode.

“Along with a Mixed Use zoning and the added bonus of being able to live on site, this makes it immediately attractive to a range of potential owner-occupiers or tenants who could include artisan businesses, catering companies and cottage industry manufacturers. Or it could simply be used for storage.

“Packages like this, in locations like this, don’t come along very often.”

Kermode says the “expected net annual rental income” is in the vicinity of $60,000 with the likelihood of increasing this through refurbishment.

The 495 sq m building is divided in half, with a high-stud warehouse along one side and a two-level combination along the other side, made up of low stud warehousing and office space with amenities.

From an add-value investment perspective there are more options, says Kermode.

“Astute investors could take advantage of the record low Auckland industrial property vacancy rates and likely generate a tenant income stream at short order, while they consider development or refurbishment options for either apartments or other mixed use possibilities.”

He says the area is already changing towards more residential, semi-commercial uses. “This city fringe precinct has undergone recent significant intensification from industrial to boutique industry and even hospitality uses – for example a nearby warehouse conversion into a micro-brewery and restaurant in Akiraho Street.”

Kermode says the property sits beside expensive inner city villas and has an elevated north-westerly aspect. It is also within the Auckland Boys Grammar school zone.

Substantial residential developments are underway in the immediate vicinity including the Station R apartment block at 9 Fenton St.

“The property could easily accommodate four to six apartments with an industrial-styled aesthetic.

 “Although the premises lends itself to redevelopment within its existing envelope, it’s significant to note, for investors considering more extensive development, that there’s only one other owner within the unit development at 14 Haultain Street,” says Kermode.

He says the Mixed Use zoning, which will remain under the Proposed Auckland Unitary Plan, allows for broad based activities like childcare facilities, residential, retail, office and healthcare uses as well as light industrial.

Lynch says Haultain Street is only three kilometres from downtown Auckland and equidistant from Newmarket and Grey Lynn, providing easy access to the CBD, other key suburban business hubs and to motorway access ramps.  

Although a quiet side street, it is close to the main arterials of New North Rd and Dominion Rd.

 “The site’s location near Mt Eden railway station means it is set to benefit from development associated with the city rail link project which we anticipate will increase land values and rents in the area,” Lynch says.