Two neighbouring properties are up for sale in central Kingsland offering a variety of add value options.
Both are located on 976 sq m rectangular sites at 4 and 6 Kingsland Terrace and are zoned Business - Mixed Use, permitting a wide range of commercial and residential activities.
The properties are one block back from Kingsland Village in an elevated position backing onto and overlooking Nixon Park.
Featured in Bayleys’ Total Property portfolio, they are being offered for sale on behalf of different vendors by Nigel McNeill and Kate Kirby, Bayleys Auckland. They are each up for tender closing on October 25, unless sold prior to that date.
McNeill says both properties provide opportunities for owner occupiers, add value investors and developers.
The offering at 6 Kingsland Terrace has a net lettable area of 1158 sq m with the partially tenanted building occupying just over half the site.
“Constructed in the 1960s, the two-level building was originally warehouse premises but was subsequently modified and now provides predominantly character office suites for a mix of small businesses across both floors with some workshop space also located on the lower ground floor,” says McNeill.
The property is currently generating net annual rental holding income of $144,341 plus GST but there would be an immediate add value opportunity for a new owner to increase this as approximately 42 per cent of the building is vacant, he says.
“The current building has been assessed as having potential net rental income of over $260,000 a year, fully leased. The purchaser could add further value by upgrading and possibly expanding the premises and by improving the tenancy mix and converting month to month tenancies into longer term leases.
“The current, short term flexible lease structures also open up opportunities for owner occupiers and developers to make the most of this sought after location,” McNeill says. “The building’s structure and zoning would allow a mixture of warehouse, office space and residential space for an owner occupier.”
The building was constructed of reinforced concrete floors, concrete block external cladding, steel framed security glazed windows and a super six fibrolite roof. Kate Kirby says the sloping nature of the site means there is roller door vehicle access to both levels with cart dock access on the top level and separate ramp access to the lower ground level. There are separate men’s and women’s toilet facilities on both levels.
“Internally, the building provides well-presented business accommodation with its high stud providing a good level of natural light,” says Kirby. “Externally, its appearance could also be easily enhanced to give it more street appeal to assist in attracting tenants.”
The adjoining, same sized site at 4 Kingsland Terrace has a smaller 620 sq m building. This is also a two- level industrial structure built in the mid 1960’s. At ground floor level is the main 337 sq m factory/warehouse with a four to five metre stud height plus an 18 sq m front office and a 38 sq m covered loading area. A 227 sq m workroom is located on the lower ground level and there is vehicle access to both levels.
The building comprises a concrete column and beam frame with predominantly concrete flooring. The exterior cladding is concrete block with part shadowline fibrolight and mainly aluminium joinery with long run iron roofing.
There is holding income of $91,500 per annum net plus GST from a three-year lease which expires in July next year with no right of renewal. However, Kirby says this rental does not reflect the market value of the land and buildings.
She says 4 Kingsland Terrace presents similar add value options to 6 Kingsland Terrace including upgrading and expanding the existing building, incorporating a mix of warehouse, office and residential accommodation to increase its appeal to occupants.
“Alternatively, subject to obtaining the necessary resource and building consents, you could undertake a complete redevelopment of both sites by demolishing the existing premises and rebuilding, making full use of the land area.
“Due to its proximity to the train station and the popular Kingsland village with its restaurants and cafes this is a favoured location for apartment development. The natural contour of these two sites which slope down towards Nixon Park also increases their appeal for residential development.”
A recently completed apartment complex is located opposite the two properties while on the other side of 6 Kingsland Terrace, the NXN apartment project is well advanced. This substantial development with incorporate 73 one to three bedroom apartments with two levels of underground parking.