City fringe sites with consent for development

9:28 AM Wednesday September 5, 2018 Colin Taylor

An artist’s impression of a residential and commercial development envisaged for 339-359 Great North Rd, Grey Lynn. Photo / Supplied

Two adjoining high-profile properties are for sale on a strategic corner in Auckland’s city fringe with resource consent for a major residential and commercial development.

“The two properties are in six freehold titles and can be purchased together or separately with flexible options,” says Cam Paterson of Barfoot & Thompson Commercial who, with colleague Reese Barragar, is marketing 339-359 Great North Rd for sale by tender closing at 2pm on Wednesday September 26 unless sold earlier.

“The properties occupy prime elevated sites in Grey Lynn, in the heart of one of Auckland's fastest growing and trendiest suburbs,” Paterson says.

On the northern side of Great North Rd, the six lots encompass 2832sq m of land with a long 81m frontage to the busy arterial route; and frontages also to Elgin and Harcourt Sts.

“The combined offerings include a resource consent for 79 apartments with a projected gross floor area of 15,501sq m including street level commercial space,” Paterson says. “This comprises 8464sq m of residential units and ground floor commercial; plus 1517sq m of balconies; and 5520sq m of basement parking over two levels.

“The apartments would have a long-ranging northwestern outlook, only a short walk from the popular retail precincts of Ponsonby and Grey Lynn.

“The entire site is currently fully occupied with three primary tenants providing a total annual holding income of $356,340 plus GST.”

Paterson says the zoning for both properties is for Terrace Housing and Apartment Building with a maximum permitted height of 16m.

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An aerial view with a red border roughly indicating the two properties for sale. Photo / Supplied

“Whether a prospective buyer intends to invest and hold longer term; or develop sooner, these well positioned properties promise solid earnings and certain development outcomes in a rapidly improving location.”

Barragar says two of the six titles, totalling 986sq m, are tenanted by a Caltex Service Station having a building area of about 200sq m at 339-349 Great North Rd. “This property offers good holding income while being ripe for development,” he says. 

The combined area has resource consent for 26 apartments having a 2688sq m gross floor area excluding basement parking.

The property generates annual rent of $180,000 plus GST with the tenant paying all operating expenses (OPEX) on a net lease commencing August 1, 2012, with a final expiry of July 31, 2022 with no rights of renewal.

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The Caltex service station at 339-345 Great North Rd. Photo / Supplied

Auckland Towing Company leases the other four titles at 351 and 355-359 Great North Rd; and also at 349 under the tenant name A Guthrie & C Ellis.

The four titles, which have a land area of 1864sq m and a 483sq m gross floor area across three buildings, generate a total annual ‘casual’ holding income of $176,340.

The combined titles have resource consent for 53 apartments comprising 5700sq m of gross floor area excluding basement parking.

Barragar says the Grey Lynn location has become a trendy and popular city fringe village centre where a number of boutique developments have been completed and more are underway.

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The property leased to Auckland Towing at 349, 351 and 355-359 Great North Rd. Photo / Supplied

“It’s close to the CBD with regular transport services, many local amenities and near motorway on-and-off ramps.

“In addition to being near the vibrant Ponsonby Rd retail strip, with its numerous bars, cafes, restaurants and nightlife; just a few blocks away is the eclectic Karangahape Rd with its contemporary art galleries, vintage clothing stores and numerous eateries offering a range of global cuisine.”

Paterson says the surrounding area is “a hive of activity” with a number of completed and scheduled developments including: Crest apartments, under construction for 49 freehold apartments; the Turin apartment complex, a recently completed 27 apartment building; The Dylan apartments, with 23 recently completed spacious apartments; North Apartments, featuring recently completed 37 new one and two-bedroom apartments; and a new Bunnings store.

“Grey Lynn’s closeness to the Auckland CBD and other city fringe suburbs along with a flexible zoning and the completion of major city infrastructure projects is likely to see this location continue to grow both commercially and residentially,” Paterson says.

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Cam Paterson and Reese Barragar of Barfoot & Thompson Commercial.