Commercial property set to enjoy residential-level gains in 2021
Barfoot & Thompson Commercial kicks off the start of 2021 with its “First 21” portfolio, which comprises a selection of properties with numerous opportunities for investors, developers and occupiers.
The properties being presented to the market include six properties for sale by deadline private treaty, four for auction, four for tender and seven properties for sale by negotiation.
This marks the seventh consecutive year that Barfoot & Thompson Commercial has undertaken their First of the Year series and Commercial Manager John Urlich believes that
2021 is promising to be a great year for property. “Following the recent lockdowns, the market fundamentals have remained strong,” Urlich says “The consistency and gains we have seen over the residential market are starting to manifest themselves now in the commercial market.”
Included in the portfolio are two properties occupying a city fringe location at 12 and 14-16 Nugent Street, Grafton.
“These sites offer multiple options for investors, developers, occupiers and add-value buyers,” says Cam Paterson, who is marketing the properties for sale by negotiation that can either be purchased together or separately.
The site at 12 Nugent Street houses a 218sq m highly functional 1960’s office/retail or showroom building on a 394sqm site. “There is a 20-metre frontage onto Nugent Street and five on-site car parks” Paterson says “The property is leased to Statement Inspired Design Ltd for a period of three years from 1 March 2021 with two rights of renewal of three years, with a rental of $84,949 + GST.
“The larger of the two, 14-16 Nugent Street, totals 796sq m of Freehold land with eight car parks and is being sold with vacant possession,” he says “The improvements include a
694sq m building that is a mix of industrial and office space comprising a basement of 120sq m, ground floor of
396sq m and 178sq m on the first level. “Both freehold sites are located in the favourable Mixed Use zone under the Auckland Unitary plan, providing for both residential and smaller scale commercial activity and have a height limit of 18 metres,” says Paterson.
“These properties are strategically located providing easy access to State Highways, Auckland CBD and the popular fringe suburbs, and are poised to benefit from the completion of the City Rail Link.”
Heading south of the CBD, near the Ellerslie/Greenlane intersection, is another property included in the portfolio located at 576-580 Great South Road, Ellerslie.
This large 4,683sqm site is being marketed by Wayne Muir of the City Commercial office with vacant possession who is asking for expressions of interest by 4pm, Wednesday February 24.
“This property is well known as Rod Milner Motors, which has operated successfully from the site for the past 38 years selling motor vehicles,” Muir says. “It’s now the largest supplier of disability vehicles in the country and plans to extend their business are underway.”
The site is held in five fee simple titles and boasts two broad street frontages on main arterial routes. The frontage onto Great South Road is approximately 83 metres and there is approximately 63 metres of road frontage onto the highway.
Muir says that the location of this site is a huge benefit as it’s located effectively in the centre of the Auckland isthmus meaning all round easy access to most points of Auckland. “Convenience is a major attribute of the site as the CBD is within 7km, Newmarket 4km, motorway junctions 1km, buses outside the property and two train stations within walking distance,” he says. “Major shopping centres and the Auckland International Airport are all immediately available via main roads.”
The site is zoned Mixed Use and currently has a height limit of 18 metres; however, a recent Government Policy statement (NPS-UD) creates a new development framework that potentially allows a significantly enhanced development envelope for this land despite current zoning.
Over in Sandringham, sits another opportunity for the astute purchaser in the way of a mixed retail and apartment building.
Nick Wilson is marketing 693 Sandringham Road for sale by tender closing 1pm, Thursday February 11, unless it sells prior to this date. “This property has two options,” says Wilson. “A purchaser could either buy the property alone, or there is the option to buy the property and the convenience store business and continue to operate.”
Comprising 136sqm of freehold land, this solid two-level building of approximately 172sqm includes a two-bedroom 73sqm apartment on the upper level. This is currently rented at $500 per week with a periodic tenancy while the ground level is a 99sqm retail shop, TVS Superette, and has been successfully operating for more than 20 years.
Wilson says Sandringham Road is a key arterial route providing easy public transport to rail lines and the CBD. “The surrounding suburbs of Mt Albert, Mt Eden, Balmoral, Kingsland, Pt Chevalier and Grey Lynn create the inner western fringe of the city, one of Auckland's most desirable locations to live,” he says. “Sandringham is experiencing a rejuvenation as strong residential redevelopment is occurring, deriving the need for supporting commercial amenity.”
The property is zoned Neighbourhood Centre, which applies to single corner stores or small shopping strips located in residential neighbourhoods. “This is a perfect option for someone looking to invest.”