A strategically-located landholding in Newmarket, which is currently under-developed when viewed against the growth fundamentals being seen region-wide, has been placed on the market for sale.
The prime 1,318sqm north-facing freehold site at 8-10 Roxburgh Street, Newmarket 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 Street runs between McColl and Melrose Streets, which in turn are accessed off Khyber Pass Road. The subject 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 Street has a land area of 842sqm 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 component of the property 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 car parks associated with 8 Roxburgh Street, six of which are leased to nearby business Maison Vauron for $9,500 + GST per annum.
At number 10 Roxburgh, an early-1900s residential villa with three levels sits on an elevated 476sqm 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 4pm Thursday, 15th July, unless sold prior.
Siegert said Newmarket is a key urban intensification hotspot and, with the amount of investment being seen in the suburb across the property sectors, the Roxburgh Street site is the sort of opportunity that residential developers, in particular, are keen to acquire.
“The Business – Metropolitan Centre zoning under the Auckland Unitary Plan 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 36 metres, 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 Road, 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, given the dynamics at play in the housing market, lean heavily in favour of more intensification through residential apartment living.”
The location is around 600-metres walking distance from the Newmarket train station and close to main bus routes. An Auckland Council paper titled:
How rapid transit access adds to property values showed that residences that are well-served by trains or express buses command a significant premium over those that are not, which further underpins the desirability of the central Newmarket location.