Development opportunity in Silverdale

5:00 AM Saturday May 21, 2016 True Commercial

One of the redevelopment concepts depicts long street frontages to Silverdale Avenue and Agency Lane that would suit boutique retail and food and beverage premises on the ground floor - possibly apartments and office suites above.

A large block of land in Silverdale is for sale with significant redevelopment potential under the Proposed Auckland Unitary Plan’s Town Centre zoning.

Bayleys agents say the land — at 15-19 Silverdale St and 4-8 Agency Lane and encompassing four separate land titles ranging from 824sq m to 1932sq m — also offers immediate income from seven tenants.

The company is being marketed by John Algie and Damian Stephen of Bayleys North Shore Commercial in conjunction with Steve Orr from Bayleys Warkworth office.

Tenders can be lodged for one or more of the titles, or the entire 4501sq m block, closing on June 15.

There are more than 1000sq m of buildings on the property, occupied by five retail and two industrial tenants, producing annual gross rental income in excess of $250,000, says Algie.

“This is one of the most high profile sites in the central Silverdale Village, and one of the few yet to be fully developed in this rapidly growing township,” he adds.

“It is ideal for further development given its reasonably level contour and regular rectangular shape coupled with its corner position and substantial frontage to two streets.

“This development potential will be further enhanced and unlocked by the new Proposed Auckland Unitary Plan [PAUP] zoning of Town Centre-Silverdale, which will allow for higher density mixed-use building on the site including residential dwellings on the upper levels.”

The property comprises:

• 15 Silverdale Street - 873sq m of land with a 230sq m cafe;

• 19 Silverdale Street - 872sq m of land with a 450sq m retail building leased to a Raw Essentials pet food store with lease renewal rights until 2020 and a flooring retailer with renewals until 2021;

• 4 Agency Lane - 824sq m rectangular block of land with a single-level 330sq m retail building with a large carpark at the rear. This is leased to an interior design and furniture retailer on a short-term lease and a designer clothing store with lease renewals extending to 2020; and

• 8 Agency Lane - the largest of the titles at 1932sq m is primarily occupied by Silverdale Marine on a monthly lease, while a scaffolding business occupies the balance of the land.

Algie says given the overall lease structure, with varying lease expiries, and the size of the property, the property lends itself to a staged progressive development.

The current zoning is Business-Retail, which will change to Town Centre when the Auckland Unitary Plan is activated, expected to be later this year.

He says another shorter term option that could be considered is to increase the property’s income generating potential by renegotiating and extending the leases on some of the current buildings which have sort term tenancies.

Algie says the property is located in the heart of the original Silverdale Village which Auckland Council is keen to see reinvigorated.

The PAUP Town Centre zoning provides for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services.

TRUE COMM 15  19 Silerdale St 01_RED LINE.JPG

An aerial view of the land for sale at 15-19 Silverdale St and 4-8 Agency Lane – identified by a red border. 

The increased height provision of up to 16 metres within the Town Centre Silverdale zoning is designed to facilitate more office and residential living opportunities on upper floors.

Any building work within the zone requires resource consent in order to ensure that it is undertaken to a high standard and enhances the quality of the centre’s streets and public open spaces.

Damian Stephen says concept redevelopment drawings undertaken for the current owner of the property by E.T. Urban Design Ltd show what could be possible under the Town Centre zoning and are available to interested parties.

These plans depict a three-level complex, totalling 6000sq m built around a central “village green” area, although it could be possible to build more intensively than this, he says.

“The property’s long street frontages to both Silverdale Avenue and Agency Lane, totalling over 150 metres, means it would be well suited to boutique retail and food and beverage premises on the ground floor with apartments and possibly some office suites above.

There would be an obvious opportunity for a developer to add value here by strata titling units and apartments and selling them off to individual purchasers.

“The location in the heart of Silverdale, close to all key amenities, should also make it appealing to tenants and residential occupants.”

Stephen says Silverdale has undergone rapid development over the past five years and this will continue over the long term, with the town and surrounding rural land currently zoned Future Urban earmarked for further development over the next 30 years to help cater for Auckland’s residential and commercial growth.

Already established north of the property for sale on Silverdale Street is the Silverdale Retail Centre owned by NZX listed Stride Property Group and anchored by The Warehouse and Countdown, with over 30 other shops.

Earthworks are also under way for a proposed four-storey building that will include a 5490sq m Farmers department store over two levels, up to 30 retail stores and almost 400 underground car parks on the corner of Silverdale Street and Millwater Parkway.

The massive nearby Millwater housing project is well underway to cater for a projected population growth of more than 10,000 people with a mixture of low, medium and high-density homes to be built on more than 300ha of land between Silverdale and Orewa.

Earthworks are also underway on the adjoining 60ha Highgate Business Park.

This will be between Wainui Rd and State Highway 1 and is forecast to generate around 4500 jobs over the next 20 years.

It will encompass a mix of light industrial, office, medical and educational style uses as well as some retail space, bars and restaurants.

Part of the site is also residential, with 100 homes already consented under a Special Housing Area agreement with the Auckland Council.

It will act as an interface between Millwater and Highgate’s general business zone.

“All this large-scale development means that Silverdale will be at the centre of one of Auckland’s biggest growth areas and the sale of this property offers an exceptional opportunity to be part of that,” says Algie.