Ponsonby property has potential on tap

5:00 AM Saturday March 7, 2015 Colin Taylor

This Ponsonby property leased to Plumbing World is for sale at 40 Mackelvie St.

A Ponsonby warehouse and office investment property is for sale for the first time since the 1980s and is being billed by its exclusive selling agents as “one of the best city-fringe investment properties on the market”.

Jonathan Lynch and Kris Ongley of Colliers International are marketing the freehold land and buildings at 40 Mackelvie St for sale by tender closing on Thursday March 19 unless it sells beforehand by negotiation.

The building, constructed in the 1970s, is a versatile two level warehouse and office structure, providing 1152 sq m of lettable area. The site encompassing five off street car parks comprises two adjacent freehold titles with a combined land area of 962 sq m.

The ground floor contains offices, amenity areas, storage and a showroom that is accessed by roller doors which service two loading docks, both fronting Mackelvie St, along withy two pedestrian entrances. Further storage, as well as a staff kitchenette, is on the mezzanine level.

Lynch says the property is occupied by a Plumbing World on a three year lease generating net annual rental income of $151,900 and is one of 40 stores operated nationwide by the plumbing retailer.

He says the property has has all the key attributes investors are looking for including a strong tenant covenant and a good location.

“It represents the very best in city fringe commercial investment stock. All the boxes are ticked including a national brand name tenant, a simple and versatile building, flexible zoning and an outstanding Ponsonby location surrounded by a variety of strong commercial operators and a sought-after residential catchment.”

Ongley says the property is a strong contender for redevelopment in the future.

“There are several options for adding value to this property at a later date, given its excellent location on Mixed Use zoned land near Ponsonby Rd. A residential development would be an obvious possibility, with several apartment blocks and townhouses already in the immediate vicinity.”

He says the Proposed Unitary Plan would allow a development on this site to go up to 24.5 metres or six stories when it becomes operative.

“Whether buyers view this property as a medium-term investment or a longer-term add value proposition, it is an excellent opportunity to acquire a significant freehold land holding in a part of Ponsonby that is undergoing a wave of transformation,” Ongley says.

Lynch says the property is only a block from the 1.3 ha Vinegar Lane development and the completed Ponsonby Central complex.  

“This is a rare chance to acquire a well-priced parcel of land in the sought-after sub-$5 million bracket, in an area which is likely to experience rising property values and rents as a flow on result of the $200 million Vinegar Lane project,” he says.

Lynch says the property is on the border of Ponsonby and Grey Lynn, two of the most popular suburbs in central Auckland.

“Mackelvie St runs between Ponsonby Road, across Williamson Ave and along to Great North Road in what is a vibrant area housing a wide variety of occupiers including light industrial, design studios, retailers, offices and apartments. There are also several townhouses and upmarket freestanding homes which complete the residential component of this popular area.”

Great North Road and Ponsonby Road are the primary suburban arterials which link the western city fringe to the Auckland motorway network, Lynch says.

“This immediate area has excellent accessibility to the southern, northern and north western motorways, meaning occupiers here are in an excellent position to serve customers throughout greater Auckland, as well as in the nearby central business district.”

The thriving retail and hospitality strips of Ponsonby Road and Karangahape Road are an easy walk from the property and there is also excellent public transport serving the area, he adds.

Ongley says Ponsonby has an excellent leasing history and benefits from easy access to the CBD, as well as being near to a large and affluent residential catchment.

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