Grey Lynn site ideal for small investor
This small industrial investment property is for sale at 29 Nixon St, Grey Lynn.
A small industrial investment property for sale on a corner site in Grey Lynn is likely to have future residential development potential on the final expiry of its lease in 2018.
Located at 29 Nixon St, on the corner with Burgoyne St, the 266 sq m site with an industrial building on it is being marketed by Simon Aldridge of Bayleys North Shore Commercial in conjunction with colleagues James Were of Bayleys Auckland and Tony Chaudhary of Bayleys South Auckland.
The property is among 14 properties featured in Bayleys latest Greater Auckland commercial and industrial portfolio which will go for auction on July 1.
“The property presents an opportunity for smaller investors looking for an add value or development opportunity to purchase a Mixed Use zoned holding on the border of the thriving Auckland CBD fringe suburbs of Grey Lynn and Newton,” says Aldridge.
The property is currently producing net annual rental income of $30,000 plus GST from a lease from June 2012 to RSB Electrical which last year exercised the first of two two-year rights of renewal.
“The lease’s final expiry occurs in mid 2018, at which stage the new Proposed Auckland Unitary Plan [PAUP] is expected to be operational,” says Aldridge. “There will be a continuation of the property’s current Mixed Use zoning under the new plan which provides for residential activity as well as predominantly smaller scale commercial activity.”
He says the Unitary Plan’s Mixed Use zone does not specifically require a mix of uses on individual sites or within areas, but buildings are required to be adaptable so that the uses within them can change over time. The standard zone height is four storeys but there is a range of possible building heights depending on context and closeness to major metropolitan areas. New development within the zone requires resource consent in order to ensure it is designed to a high standard which enhances the quality of streets within the area and public open space.
“The zoning should allow more intensive development of the Nixon Street site either for commercial or residential use or a combination of these,” says Aldridge. “The site would be well suited to some sort of residential redevelopment given its location next to the playing fields of Newton Central School and within a short walk of bus stops on Great North Road which Nixon Street connects to. The property is also within walking distance of a range of retail and entertainment facilities on Ponsonby Rd and Karangahape Rd and is also near the CBD and motorways as well as the main arterial of Newton Rd.”
The current, predominantly concrete block building comprises ground floor office and warehousing, with front roller door access and mezzanine office space above. Aldridge says the tenant has undertaken some improvements to the building including extending the office area into the warehouse and creating additional mezzanine which has increased the rental area to around 190 sq m.
The front entrance opens onto an office which extends through to the rear warehouse portion of the building. To the northwestern side of the office are basic kitchen and bathroom facilities. There is stairwell to the mezzanine level which is situated above the existing office.
The front portion of the under utilised site provides open off-street parking for four angled vehicles and one or two stacked vehicles.
What’s on offer?
The property: Mixed Use industrial site.
Location: 29 Nixon St, Grey Lynn.
Sales method: Auction on July 1.
- Mixed Use zoning.
- Add value or development potential.
- Ideal for smaller investors.
- Earning annual rent of $30,000.
- Residential possibilities under PAUP.
Simon Aldridge of Bayleys.