Opportunities at city-fringe industrial property
A rare industrial property ripe for intensive residential or commercial redevelopment has gone up for sale in a fast-transforming Auckland cityfringe location.
On Surrey Crescent, Grey Lynn, the versatile single-storey premises with handy on-site parking/yard area is one of a dwindling number of functional warehouse properties still found on the rapidly intensifying CBD fringe.
With final expiry of the current lease due in June 2024, the property is expected to have broad buyer appeal among owner-occupiers, add-value investors and developers.
The existing lease to a long-standing tyre service tenant generates an annual net rental return of $66,588 plus outgoings and GST.
The freehold property at 27 Surrey Crescent is offered through James Were and Sunil Bhana of Bayleys Real Estate. It will be sold by tender, closing Tuesday April 23, unless sold prior.
Were said the approximately 225sq m building sat on 429sq m of land. “Constructed in the 1970s, the building’s warehouse space is complemented by a mezzanine area currently used as office, lunchroom and storage space. The front of the property provides excellent on-site carparking or yard space.
“These premises have served the tenant’s purposes for over 25 years and are well suited for future occupiers with similar needs.
“Alternatively, buyers could see an opportunity to repurpose the existing building to a higher and better use, such as an office/showroom. But ultimately, its long-term value is in its potential for intensive redevelopment,” Were said.
The rectangular site comes with Business– Mixed Use zoning under the Auckland Unitary Plan. This provides for intensive residential, commercial or mixed-use development to 18m, subject to necessary consents.
Bhana said the site’s potential was further underpinned by its strategic position within a short walk of West Lynn Village, a few minutes’ drive from Auckland’s CBD, and with handy motorway access.
“Over the past 10 years, Grey Lynn has rapidly evolved into one of the most desirable residential and commercial locations on the city fringe. Commercial real estate is increasingly in demand here, thanks to intensive planning provisions which have stimulated a sprouting of residential and mixed-use projects. A multitude of apartment developments are underway or completed in the area and there’s every sign this trend will continue.”