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A chip off the ‘old block’ as apartment portfolio placed up for sale through voluntary administration

Tags: Commercial

A portfolio of 23 brand new residential units in the apartment complex constructed on the land previously occupied by homes built for the first season of the reality TV series The Block NZ have been placed on the market for sale.

The 23 apartments are located within the 92-unit The Sargeson Apartments development at 74 – 80 Anzac Street in the Auckland suburb of Takapuna. The company behind The Sargeson Apartments project, Auburn Developments, was placed into voluntary administration last month.

Some 69 apartments within The Sargeson Apartments have been sold, with many now occupied by their new residents. The remaining 23 on the market are spread across various floors within the pair of six-storey towers connected via an atrium walkway.

Dwellings within The Sargeson Apartments complex have access to a swimming pool, children’s playground, and BBQ area. The apartments are serviced by an underground carpark, with both towers having two lifts each. The Sargeson Apartments block sits on the immediate fringe of Takapuna’s central business district, and just one kilometre away from the Northern Motorway in to and out of Auckland city.

The 23 apartment portfolio is now being marketed for sale by tender through Bayleys Real Estate, with tenders closing at 4pm on September 25. Bayleys projects specialist brokers Duncan Ross, Gerald Rundle and Suzie Wigglesworth said the apartments could be tendered for individually, as one combined portfolio of 23 units, or in any multiple of combinations.

The portfolio for sale in the administration process consists of 14 studio apartments, three one-bedroom apartments and six one-bedroom plus study apartments. All have been completed, and are ready for immediate occupation.

The 69 apartments sold prior to the voluntary administration were marketed with prices ranging from $495,000 for a one bedroom unit or $860,000 for a two-bedroom ground floor apartment, up to $990,000 for a two-bedroom top floor apartment.

Mr Ross said the administration process and associated requirement to clear the developer’s debt, meant an immediate sale – or sales – were required.

“Any purchaser looking to buy the entire portfolio, or multiple units in smaller parcels, should register their interest,” he said.

“With a range of apartment configurations available on various floors, with different outlooks, and available to potentially purchase in any number, the tender process offers considerable flexibility for buyers.”

Mr Rundle said 10 of the apartments within the portfolio for sale were subject to affordability covenants.

“Due to the resource consent for The Sargeson Apartments complex being granted under the provisions of a Special Housing Area (SHA), 10 of the 23 units on offer are subject to affordability criteria,” Mr Rundle said.

“Covenants have been registered against the titles of these units. A wholesale purchaser of any of the affordable apartments will be subject to these covenants when on-selling them as retail offerings.”

The Sargeson Apartments block is named after noted North Shore writer Frank Sargeson. The land at 74 – 80 Anzac street – bordered on two sides by recreational green spaces – housed the four stand-alone homes built in the first season of The Block NZ in 2012, and won by brother and sister duo Libby and Ben Crawford.

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