A pivotally-positioned large freehold Mt Eden site with existing multi-tenanted cashflow from a 22-room boarding establishment is for sale, with inherent upside to be realised given its underlying fundamentals.
The standalone 516sqm character villa operating as St Albans Lodge sits on an elevated 1,318sqm freehold landholding at 6 St Albans Avenue close to busy and popular Dominion Road and presents as a potential-laden investment opportunity for a forward-thinking buyer, according to agents.
The north-facing site has circa 42-metres of street frontage to St Albans Avenue, and the Mt Eden volcanic viewshaft – sitting at roughly 36-metres – does not limit any development potential.
Once operating as a rest home, the villa was consented for boarding house use in 2004 and has seen good occupancy for its long-term owner, who has successfully managed the letting of the property but is now motivated to sell and move on.
On the ground floor, there are nine rooms, a central hallway, kitchen with stainless steel bench and island, two stoves, locker room and a toilet.
The rear upper level contains four rooms and bathroom amenities, while the lower rear level contains a further nine rooms, a communal laundry, and bathroom amenities.
Two of the larger rooms within the house have their own kitchens and toilet facilities, and there are seven off-street car parks.
The boarding house currently has one room vacant, but would generate a notional income of approximately $222,167 per annum (gross) if fully leased, with room to improve.
The property’s favourable Business-Mixed Use zoning paves the way for a new owner to optimise the value of the site in the future through a wide array of possible development options, buoyed by the infrastructural changes and growth being seen in the broader catchment.
It is being marketed by Phil Haydock and Alan Haydock of Bayleys Auckland Central, with tenders closing 4pm, Tuesday 23rd May, unless sold prior.
Phil Haydock said buyers could look to take advantage of current market conditions and acquire an affordable, mixed-use zoned site with cashflow and sound long-term-hold advantages.
“There’s a well-documented shortage of residential rental accommodation Auckland-wide, and this facility has cemented its position in the rental market given its affordability and locational advantages.
“While this property does require active management, the day-to-day running could be outsourced to a professional property management company to minimise involvement by the landlord.
“Seasoned investors will quickly realise that the true value lies in the land, and compared to vacant land, the holding income here makes it a more attractive proposition to fund.”
Auckland’s city fringe suburbs are being transformed as zoning changes and infrastructural upgrades create development opportunity and better connectivity.
Haydock said Mt Eden has been an enduringly popular suburb and the subject property’s genuine development credentials are underscored by its handy location close to public transport options, and the service and retail functions of Mt Eden Village.
“It’s a vibrant and eclectic village with supermarket, good range of cafes, restaurants and retail stores and the suburb is poised to benefit from proposed new connectivity initiatives like the Auckland Light Rail project,” he said.