Add-value opportunity in sought-after Grafton
A prominently placed multi-level office building in the popular Auckland city fringe suburb of Grafton has been placed on the market and will appeal to owneroccupiers or investors given its considerable add-value potential.
128 Khyber Pass Rd has 1651sq m of total net lettable area on a 2104sq m site zoned Business–Mixed Use under the Auckland Unitary Plan.
The property is currently home to multiple tenants but approximately 1200sq m will be available as vacant on settlement, meaning the new owner could set up their operations and begin trading immediately or undertake refurbishment.
Dress for Success Auckland, which occupies 433sq m of space on the ground floor, has a two-year lease that runs until August 2025 and will be the only remaining tenant on settlement. The lease provides $84,000 plus GST in annual rental income.
The location is highly appealing given it is only moments from the motorway network. The property benefits from 51 dedicated on-site carparks, a strong figure for a building of this size. There’s also a range of public transport options nearby.
Westfield Newmarket, one of the country’s premier shopping destinations, is less than 2km away, while there’s a collection of hospitality offerings and shops in walking distance.
Colliers directors David Burley and Kris Ongley are marketing the property via deadline private treaty closing at 4pm, Wednesday November 29, unless sold prior. Burley says the vendor is clear that this property must be sold.
“Owner-occupiers have remained strong players in the commercial property market throughout this year. These purchasers are actively seeking opportunities to secure their own premises and control their future without being bound to a lease and this property offers that,” Burley says.
“On the other hand, an investor may choose to acquire this building and either lease it immediately or explore refurbishment options to try and maximise its true value.”
Ongley says the zoning offers considerable flexibility for the new owner. “The zone does not specifically require a mix of uses on individual sites or within areas. There is a range of possible building heights depending on the context. Provisions typically enable heights up to four storeys. Greater height may be enabled in areas close to the city centre, metropolitan centres, and larger town centres.”
Burley says there have been significant commercial and residential developments near the subject property during the past few years, which have added to the popularity of this location.