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Buyers Weigh Options To Unlock Potential Of Key CBD Site
New apartments, an office/retail complex or a hotel are among the possibilities mooted for an underdeveloped freehold site which has gone up for sale in the heart of Auckland’s CBD.
The more than 800 square metre site for sale at 17-19 Federal Street lies a short walk from Queen Street, the Viaduct, Commercial Bay, SkyCity and future City Rail Link stations.
Currently home to a four-storey building with terrace housing and two levels of parking, the property known as Federal Terraces enjoys a development-friendly zoning and a height allowance that would enable a building more than twice as high.
With the existing structure having remedial issues, the offering is being marketed as an opportunity to buy as is and remediate or redevelop to unlock the site’s full potential.
The property at 17-19 Federal Street is being marketed for sale by Phil Haydock, Alan Haydock and James Were of Bayleys Auckland Central. Sale will be by way of a tender closing at 4.00pm on Thursday 17 March, unless sold prior.
The property consists of 12 terrace houses held in individual titles, plus 41 car parks, on an 807 square metre site.
“Each two-level housing unit contains two bedrooms and two bathrooms, with an average size of approximately 91 square metres and a patio/balcony of some 11 metres, plus a storage locker,” says Phil Haydock.
“The units sit above a two-storey building containing the car parks.
“The building has remedial issues, structural defects and fire defects, with reports available to potential buyers on request. Despite these issues, the property offers an opportunity to generate holding income for a buyer while consents are sought,” says Haydock.
Alan Haydock says the site presents buyers with three major longer-term options: to fully remediate the building, to demolish it and redevelop on a larger scale, or to retain the two-storey podium and rebuild on top.
“Undertaking remediation works would provide an astute purchaser with the opportunity to sell down the upgraded housing units individually for profit, or to take advantage of the strengthening residential rental market to achieve a strong return.
“Alternatively, the property presents multiple possibilities for development or even as a land banking opportunity,” Alan Haydock says.
“Whether remediating, adding to the existing buildings or making a completely fresh
start, the favourable Business - City Centre zoning under Auckland’s Unitary Plan gives buyers a wide range of options, as diverse as the city centre itself, including office, retail, residential accommodation and hotels.”
Were says the possibilities can be seen all around the Federal Street location, in the form of new retail, apartment and other commercial developments.
“Preliminary reports indicate buildings could be developed to a height of 34 metres on the Federal Street site, potentially facilitating a development of up to 10 storeys.
“Any future uses will be supported by the site’s superbly strategic city-centre location, positioning new owners perfectly to reap the benefits of the CBD’s trend westwards and towards the waterfront,” says Were.
The immediate area is home to some of the city’s most prestigious office buildings, including the ANZ Centre and new PwC Tower. It features an abundance of amenities in the form of Auckland’s Viaduct Harbour, the Commercial Bay shopping centre and the Britomart entertainment district.
“Further benefiting this exceptionally convenient location, the downtown ferry terminal, future Aotea and Britomart CRL stations and other public transport links are all within easy walking distance,” Were says.
Changes to legislation mean that we will be asking clients for more information from 1 January 2019.
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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