With development land on Auckland’s city fringe in short supply, and corner sites always hotly-contested, the opportunity presented by a strategically-located Grey Lynn mixed-use property stands out in the current market.
The freehold land and buildings on the corner of Surrey Crescent and Richmond Road in the perennially-popular suburb, are up for sale as the motivated vendor who has owned the property for some 29 years, opts to realign his investment portfolio.
The 1,170sqm site is zoned Business-Mixed Use – undeniably one of the most attractive land classifications in the Auckland Unitary Plan as it allows for flexibility, residential development as of right and, generally, building heights to 18 metres.
The property is held in four titles and comprises multiple, two-level buildings – circa-1920s and subsequently upgraded in various ways over the years – and has been seismically-strengthened to 67 percent new building standard.
The ground floor features retail, showroom and hospitality spaces, while the first floor comprises a mix of character office space and two generous residential flats; one with three bedrooms, and one with four.
The buildings are fully-leased, with the 1,533sqm of space occupied by eight tenancies allowing for a classic split-risk investment profile. The property has a gross return of approximately $455,366 per annum.
Tenants include interior design company Uno Design, Design Tribe Architects, clothing store Jetset Bohemian and eatery Romulus and Remus.
James Were and Phil Haydock, Bayleys Auckland Central, along with colleague Beterley Pan, Bayleys Northwest, are marketing the land and buildings known collectively as 35A and 35B Surrey Crescent, by way of tender closing 4pm Tuesday 1st June, unless sold prior.
Were said while the offering could appeal to an occupier wishing to secure well-located space, it is also likely to resonate with a well-resourced add-value investor or developer buyer that recognises the intrinsic value of such a site in this progressive city fringe location.
“Although leased to several longstanding tenants, the property is unquestionably under-rented and there is definitely rental upside to be unlocked given the way the existing leases are structured,” he said.
“Someone with some property management experience and market intel will see the leasing opportunities through fresh eyes and could optimise the occupancy over time.
“For a developer, this could be categorised as a trophy hold and represents an-inherently valuable future development proposition for a forward-thinking owner.”
The site’s prime corner position with its extensive frontage to Richmond Road and Surrey Crescent, is further enhanced by the rear access off Stanmore Road which provides additional flexibility for the future redevelopment of the site.
“The popularity and strength of the Grey Lynn market is evidenced by significant residential development activity in the wider area, with the likes of The Hadlow on Great North Road typical of the sort of housing stock that the market is responding to,” said Were.
“There’s plenty of new low- and high-rise residential builds along the Grey Lynn ridge, supported by good retail and service hubs, such as the neighbourhood West Lynn shopping village on Richmond Road.
“Eateries like Lilian and Honey Bones are seeing loyal and repeat support from local residents, along with being dining destinations for a broader audience.”
Grey Lynn is a favoured location thanks to its easily-accessible position close to Kingsland, Ponsonby and the CBD.