Two Newmarket sites, one opportunity
A strategically-located landholding in Newmarket, which is currently underdeveloped when viewed against the growth fundamentals being seen across the Auckland region, is on the market for sale.
The prime 1318sq m northfacing freehold site at 8-10 Roxburgh St is held in two separate titles and is fully leased for the short term which will provide holding income while a new owner conceives a plan for its future use.
Roxburgh St runs between McColl and Melrose streets, which are accessed off Khyber Pass Rd.
The property is close to Westfield Newmarket, University of Auckland’s Newmarket campus, transport hubs and is in-zone for Epsom Girls’ Grammar and Auckland Grammar Schools.
The property at 8 Roxburgh St has a land area of 842sq m and currently supports a two-level commercial building with a small retail showroom and office on the ground floor, an adjoining warehouse to the rear and a one-bedroom apartment with a study on the second level.
This is occupied by a leisure and recreational goods importer, with a lease expiring in May next year. This property currently returns $51,000 plus GST per annum.
There are a total of 14 carparks associated with 8 Roxburgh St, six of which are leased to nearby business Maison Vauron for $9500 plus GST per annum.
At 10 Roxburgh St, an early-1900s residential villa with three levels sits on an elevated 476sq m site and returns $800 per week.
Andre Siegert, James Chan and Owen Ding of Bayleys Auckland Central are marketing the combined properties as one lot to be sold by tender, closing at 4pm on Thursday, 15 July, unless sold prior.
Siegert said Newmarket is a key urban intensification hotspot and, with the amount of investment being seen in the suburb, the Roxburgh St site is the sort of opportunity that residential developers, in particular, are keen to acquire.
“The Business – Metropolitan Centre zoning is second only to the CBD in terms of overall scale and intensity, so there’s definite value to be unlocked here,” he said.
“The landholding is large enough to support a residential apartment development with scale, as the height overlays are around 36m, along with ground-floor commercial or retail space.
“With leading commercial developers Mansons seeing huge potential in Newmarket and currently progressing a substantial nine-level office tower at 110 Carlton Gore Rd, and the likes of proactive residential developer Core City continuing to invest in the suburb, the value equation is strong.”
Chan said the current short-term leases – with tenants who are flexible – would give welcome holding income while a new owner conceptualises plans and waits for consents to be issued. “The properties could tick over with minimal input as the due diligence and design phase for a new development was carried out.
“Both properties work well in their current guise, but clearly, there is opportunity to realise the best and highest use for the sites which lean heavily in favour of more intensification through residential apartment living.”
The location is around 600m walk from the Newmarket train station and close to main bus routes.