Fringe site may allow future medium-rise

5:00 AM Saturday July 9, 2016 True Commercial

A two-storey building at 15 Nugent St, Grafton, now hosts an automotive workshop.

A big under-utilised block of land on the fringe of Auckland’s central business district is up for sale, offering potential for mixed-use development up to 20.5 metres high.

The 1988sq m site at 15 Nugent St, Grafton, close to the intersection of Khyber Pass and Grafton Rd, contains a 939sq m industrial building. The property features in Bayleys’ latest Total Property portfolio.

It is occupied by a long-standing automotive tenant on a short-term lease currently producing net annual rental income of $162,000.

The property is for sale by tender, closing August 9 unless sold prior by negotiation. It is being marketed by Alan Haydock and Phil Haydock of Bayleys Auckland’s City and Fringe division. Alan Haydock says one of the property’s big drawcards is its location within the Auckland Boys Grammar school zone which increases its attractiveness for residential development.

“The property already has a Mixed Use zoning which allows for residential development and this is retained and enhanced under the Proposed Auckland Unitary Plan by the removal of floor to land area development restrictions and an increased height allowance from 15 metres to 20.5 metres, which would permit buildings up to five storeys high.

“The large rectangular shaped site could potentially support a building with a net lettable area of just under 8000sq m under the current operative district plan and possibly even more under the proposed unitary plan. City fringe sites with this sort of potential are few and far between and this represents a big opportunity for developers, add value investors or even perhaps an owner-occupier looking for a strong location in a fast growing part of central Auckland.”

The current two-level standalone building, constructed in the 1980s, is used as an automotive workshop by Autohaus New Zealand. It was founded in 1989 and specialises in servicing luxury car brands such as Mercedes Benz and Bentley.

“There are 30 onsite carparks around the building. Autohaus’ lease can be terminated with 12 months’ notice on the landlord’s side or by the tenant giving three months’ notice.”

Phil Haydock says the property is among a diminishing number of industrial premises still remaining in Grafton, one of Auckland’s oldest suburbs which has been undergoing a rejuvenation over the last decade.

“This has resulted in a dramatic increase in the number of residential apartments and A-grade commercial premises being offered to the market. In the immediate neighbourhood.

“The Neil Group’s redevelopment of 8 Nugent St into a large-scale mix of high quality residential, office and retail premises is indicative of the transformation that is occurring in the area,” he says.

“A primary driver of this is the popularity of the location, due not only to its favourable school zoning but also to its extremely convenient position on the doorstep of the CBD and close to Newmarket, Parnell, Ponsonby, Mt Eden and the motorway systems.

“The property is in an already proven commercial location, underpinned by the presence of the Auckland Hospital, the Medical School and Auckland University’s redevelopment of the nearby former 5.2 hectare Lion Brewery site on Khyber Pass. “Strategic positioning means it will benefit significantly as Auckland continues to grow. Mt Eden train station, which is a short walk away around the corner, will connect the area directly to the CBD via the City Rail Link.”