Prize Parnell property parcel

4:15 PM Friday November 3, 2017 Colin Taylor

This aerial view over Domain Drive and Parnell Rd approximately indicates the area for sale by a red border. Photo / Supplied

A big Parnell site of over 1.25 hectares, adjoining the Auckland Domain, is being marketed as ‘one of the largest central Auckland landholdings to come up for sale in recent years’.

Made up of four separate properties at 1 Domain Drive and 491, 501 & 509 Parnell Rd, the combined package totals 12,530sq m of land.

“The site would be ideal for a retirement village or an intensive residential development,” says Alan Haydock of Bayleys’ Auckland City & Fringe division, who is marketing the property for sale with colleague, Damien Bullick; in conjunction with James Lee and Brett Whalley of CBRE’s Metropolitan Investments division.

They are offering the four properties for sale as a single lot, by international tender closing on Tuesday, December 5, unless it sells earlier by negotiation.

Owned by one vendor and generating total annual holding income of about $770,000, the Parnell landholding is a ‘trophy listing’ in Bayleys’ final Total Property portfolio for the year that was released yesterday, (Subs: Friday).

“It’s very unusual to get a property of this size come up for sale in Parnell which makes it a must view for developers and land bankers,” Haydock says.

“With favourable zonings under the new Auckland Unitary Plan, there is excellent potential for large-scale, intensive development.

“There’s already been considerable interest from some substantial players in the retirement sector because of the sheer size of the land available and the strength of the location near the Domain, in sought-after Parnell,” he says.  

“However, for the same reasons it would also suit a substantial residential development – being within zonings for Auckland Boys and Epsom Girls Grammar schools, which adds to its appeal. Future development could also incorporate some student residential accommodation - one of the main current uses of the property.” 

The largest component of the offering is 1 Domain Drive, encompassing 10,504sq m of freehold land neighbouring Auckland Domain with road access points from Domain Drive and Claybrook Rd.

Lee says the property also has resource consent in place for an additional entry point off Domain Drive. (18).jpg

509 Parnell Rd is occupied by a two-level character house. Photo / Supplied

“This site has six standalone residential buildings with a combined total of 91 rooms providing student accommodation,” Lee says. “There is a lease over this entire site to The University of Auckland, generating close to $530,000 in annual rent plus GST. The tenancy term expires in December 2019; but there is a clause in place allowing the landlord to terminate the lease by giving the tenant 12 months’ written notice if the site is required for redevelopment.”

Lee says the land is zoned Residential – Terrace Housing and Apartment Buildings which is the most intensive residential zoning provided under the Unitary Plan.

“In relation to this property, it would allow for buildings up to 19.5m over the majority of the site, with up to 50 per cent site coverage,” he says.

Potential uses under this zoning, in addition to terrace housing and apartments, include care centres, boarding houses, visitor accommodation and a limited amount of office and retail space.  
The three properties on Parnell Rd are zoned Business – Mixed Use permitting a wide range of residential and/or business uses with a height limit in this location of 18m, including a 2m roof allowance. (17).jpg

501 Parnell Rd houses a single-level building converted for commercial use. Photo / Supplied

“The Mixed Use zoning is one of the most desirable in the city fringe, as there is no maximum allowable floor-area-ratio or restrictions on site coverage - which provides quite a bit of flexibility from a development perspective,” Haydock says.

The three Parnell Rd properties comprise:

  • 509 Parnell Rd: a 728sq m landholding with a two-level character house, constructed in the early 1900s. It has been split into four residential units: one two-bedroom flat and two one-bedroom flats on the ground floor. Level one constitutes short term residential accommodation with four bedrooms. The property earns approximately $110,000 per annum.
  • 501 Parnell Rd: an 868sq m site with a single-level character building believed to have been constructed in the 1920s as a dwelling. The property has been converted for commercial use and is leased to financial services firm NZWM Limited, trading as Wealth Mentor, on a three-year term from April 2017. It generates annual rent of $77,250 plus GST.
  • 491 Parnell Rd: a house constructed about 21 years ago sitting on a cross-lease title with a half share of a land area of 860sq m. The property is leased on a periodic residential tenancy basis and earns around $60,000 per annum.

Haydock says the intensive, flexible zonings across all four sites are a key feature of the offering, enabling high density residential and apartment buildings to be built as of right. (16).jpg

491 Parnell Rd is occupied by house constructed about 21 years ago. Photo / Supplied

“The property will also provide the next owner with considerable holding income while they put plans in place and obtain the necessary consents for work to begin. Demolition clauses plus the short-term nature of the residential tenancies give additional flexibility in terms of when a purchaser starts any development work.”

Bullick says Parnell is one of Auckland’s most desirable residential suburbs, popular with professionals and families attracted by its double Grammar zoning and closeness to the CBD.

“The property for sale occupies an enviable position, bordering the Auckland Domain and just metres from Parnell Rd on its eastern boundary.  It provides easy access to motorways, public transport and Auckland’s city centre as well as Parnell’s cafes, bars, restaurants and diverse retailing.”