A large development site with drive-through access on a prime Grey Lynn corner provides a desirable opportunity to leverage locational fundamentals.
An extremely desirable corner site, strategically located on the main thoroughfare linking Grey Lynn with Ponsonby, Western Springs and key motorway interchanges, is positioned as a trophy opportunity for developers and land bankers.
The freehold land and buildings at 606-620 Great North Road are offered for sale by tender, closing at 4:00 pm on Tuesday, 31st October (unless sold prior), and are being marketed by Alan Haydock and Damien Bullick of Bayleys Auckland City and Fringe team.
Mr Haydock says the property’s Business – Local Centre zoning presents one of the most attractive land classifications under the Auckland Unitary Plan, allowing for flexibility and a combination of residential and commercial development, generally building heights to 13 metres.
“Zoning provisions allow for intensive residential and commercial development at a time when the new-build market is recalibrating following a period of inactivity.
“Residential values have moved into positive growth territory recently, and sales volumes have steadily risen for the last four months, which is a buoy for development and the new-build market.
“Construction costs have stopped rising and labour shortages have eased making projects more viable. At the same time, economists are predicting a supply-demand imbalance exacerbated by high levels of migration, which we have seen flow through to rising rental rates in main centres.
“Over the past 18 months, more challenging economic conditions have seen residential developers pull some projects, meaning we can expect fewer new apartments in the market in the next year or two. This creates an opportunity for an experienced operator to acquire the subject property - a high-profile site - and augment it to maximum advantage.”
The property is held in two titles totalling 1,079sq m (more or less) plus a share of the right of way to the southern side of the site, providing drive-through access from Tuarangi to Great North Road.
Mr Bullick says drive-through and rear access, and the site’s natural contour provide advantages for future development.
“The large landholding is north-facing, with an elevated profile in an area well-serviced by existing transport infrastructure, making it a natural choice for intensification.”
Existing improvements include a two level building, the upper level being utilised as a gymnasium and the lower level currently configured as an office/workshop.
The remainder of the site is occupied by the gym, with the balance of income derived from advertising signage, leveraging a high-profile position at a key intersection, whilst offering a classic split-risk investment profile.
“Attractive holding income of circa $121,988 plus GST per annum with flexible leases provide options for near-immediate development, or the opportunity to collect income with a long-term view to intensification.”
Mr Bullick says the location is second-to-none with Grey Lynn shedding its eclectic image over the last decade to become one of the most desirable mixed-use precincts on the city fringe.
“The subject property is at the end of the Grey Lynn Village retail area, where boutique retail and trendy cafes/eateries draw visitors from across the region.
“It is highly visible to passing vehicle traffic, and the wider area comprises a mixture of modern apartments, commercial and retail operations, with the most significant proportion of Victorian heritage architecture in the southern hemisphere.
“The recent urbanisation along Great North Road speaks to confidence in the area as a mixed-use hub, providing superb development fundamentals and the opportunity to transform this underutilised site into a trophy property within a key city-fringe locale,” he says.