Three-level CBD fringe building
Aversatile three-level building on a corner site with a favourable City Centre zoning is up for sale in an increasingly sought-after Auckland CBD fringe location, offering attractive options for owner-occupiers, add-value investors and developers.
Located on a 607sq m freehold site at 20-22 Gundry St, on the corner with Ophir St, the partially tenanted 1095sq m building comprises a mix of ground floor workshop and office space with another level of office space above and plenty of secure basement car parking.
It is the first time the property has been on the market in over 25 years and it has been occupied by the vendor’s business for a good portion of this time. Phil Haydock and Jean-Paul Smit of Bayleys Auckland City & Fringe commercial team have been appointed to sell the property, featured in Bayleys’ latest Total Property portfolio, by tender closing 4pm, September 18, unless sold prior.
“This is a central Auckland opportunity with broad appeal,” says Haydock. “It represents a prime add-value project given that the current demand for centrally located, quality character space with good car parking far outweighs supply.
“With the vendor expanding to a new location, the 578sq m top floor will be available immediately, along with 120sq m of further ground floor office accommodation, a loading dock and all 20 car parks.”
Haydock says the top floor underwent a refurbishment around 2003 and is partitioned into multiple smaller offices, meeting rooms and amenities lending itself to multi-tenanted or serviced office type premises.
“The floor has windows on three sides, providing good natural light throughout and along with the ground floor office space has been well maintained by the vendor.”
The ground floor is split into two tenancies separated by a central loading dock and a goods lift. The western side has modern office space with a lobby and stairwell linking it to the Level 1 office accommodation.
A 397sq m workshop on the eastern side of the ground floor, accessed off Ophir St via a roller door, is occupied by Johns & Gee Automotive on a four-year lease from April 2015 with three two-year rights of renewal.
This tenancy is generating net annual rental income of $53,856 plus GST. There are rent reviews to market every two years and rental increases based on the Consumer Price Index every other year.
The property is about 150m from Karangahape Rd and about 90m east of Newton Rd, and is a short drive away from multiple access points to the Southern, Northern and Northwestern motorways. The Northwestern, accessed off Newton Rd, provides easy access to and from the airport via the Waterview tunnel.
While surrounding development is predominately warehouse and workshop premises and low rise commercial offices, there has been an increase in recent years in property owners leveraging off the growing desirability of the area as a residential location and developing new apartment buildings or converting commercial properties into high-end apartments, says Smit. Tesla has opened up a new showroom and New Zealand head office opposite Gundry St on the corner of Karangahape Rd and Hereford St.
“Being within walking distance of the many cafes, bars and restaurants of K Rd and Ponsonby Rd as well as the future City Rail Link’s Karangahape Rd Station will underpin the continued popularity and growth of this location both commercially and residentially,” says Smit.
“20-22 Gundry St provides an attractive opportunity for owner occupiers seeking a central location with parking for staff and clients. The location, northwest facing corner aspect and flexible City Centre zoning, which permits wide ranging and intensive commercial and/or residential activities, means it has development prospects longer term.”