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Development pipeline improves the value proposition for older properties

A commercial premises in the city-fringe suburb of Morningside provides purchasers with an opportunity to upgrade the existing structure and capture value uplift amid a slowing construction pipeline.

The character warehouse on 506sq m (more or less) of freehold land at 634 New North Road is strategically located near the Morningside train station, key motorway interchanges and a popular commercial precinct where land availability for new development is limited.

Bayleys Auckland director of commercial leasing, Ben Wallace, says a reduction in forecast construction is spurring new interest in older properties, particularly those in high-profile areas with room to add value through refurbishment or earthquake strengthening works.

“Investors gaining confidence are increasingly looking through near-term volatility at the long-run financial return on future-proofed assets.

“Properties with intensive zoning fundamentals and the potential to upgrade facilities to better adhere to modern efficiencies are attracting meaningful interest, given comparative affordability when contrasted against building new.

“Recent research from our global strategic partner Knight Frank suggests mounting interest amongst owner-occupiers and private wealth clients seeking responsible investment options.

“The New North Road property fits this brief, providing an opportunity to enhance asset integrity by expanding the building lifespan.”

Wallace is marketing the premises for sale with colleague James Were via tender process, closing at 4:00 pm on Thursday, 6th July 2023 (unless sold prior).

The standalone property features a 463sq m (more or less) floorplate, which appears as two interconnected buildings constructed circa 1930.

Most recently utilised as an auto-workshop, the accommodation features three roller doors fronting New North Road and on-grade vehicle access to the building.

Bayleys Auckland City & Fringe team associate director James Were says that being currently vacant, the premises allows investors to undertake seismic strengthening and refurbishment works immediately after possession to improve the value proposition.

“For owner-occupiers, the property provides a chance to refurbish to exact business specifications whilst contributing positively to the evolution of the broader community.

“As a developing mixed-use precinct, Morningside is increasingly in-demand amongst occupiers, thanks to recent redevelopment works which have supported the transition of ageing commercial and light industrial buildings into desirable café, retail and character office accommodation.

“Demand dynamics are further enhanced by the suburb’s proximity to key commercial hubs, including Kingsland, Grafton, Auckland CBD and Ponsonby, as well as rapid transit via light rail and key motorway networks,” he says.

“Completion of the City Rail Link, scheduled for the end of the year 2025, will provide a further boost, making it easier for people to travel to and from the immediate area.”

Located on the main arterial New North Road, which sees upwards of 20,000 passing daily vehicle movements, the premises is in Business – Mixed Use zone, which permits densification to 18 metres, and allows for a mix of residential and commercial activities.

“The property presents a versatile opportunity for purchasers, who may choose to maximise the prominent position, preferable zoning fundamentals, and potential for refurbishment and future rental growth,” Were says.

Click here for more information on this listing.

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