A standalone office and warehouse building at 31-35 Dacre Street, Newton, has been put up for sale on a prized city-fringe site identified for intensive residential development.
The newly refurbished, two-level freehold property with a wide 30 metre frontage sits at the edge of Auckland’s CBD in the increasingly sought-after suburb of Newton.
Located just off Upper Queen Street and a few hundred metres from a future City Rail Link station, the property is expected to appeal to investors, owner-occupiers and buyers keen to explore the long-term potential of its development-friendly zoning.
The Dacre Street building is mostly vacant, with holding income available from the leased of part of the building to a canopy and marquee hire business. This generates net rental income of $53,173 plus outgoings and GST per annum.
The freehold land and buildings at 31-35 Dacre Street, Newton, are now being marketed for sale by way of a tender closing on 28 April (unless sold prior), through Bayleys Auckland Central.
Salespeople Alan Haydock and Damien Bullick said the property consisted of a building of some 1,533 square metres on approximately 912 square metres of land, with off-street car parking.
“Originally constructed in the 1960s, the building has in more recent times been refurbished and upgraded extensively. It now provides for two levels of high-quality commercial office and showroom-style accommodation,” said Mr Haydock.
The ground level is a mix of showroom and warehousing, which the previous tenant also used for car parking.
“Having previously been used as a warehouse, the vacant ground-floor tenancy of some 320 square metres still benefits from a roller door and loading bay, which enables a future occupier to use it as a showroom/warehouse or for car parking – or a combination.”
About half of the ground floor –325 square metres – is occupied by outdoor equipment and party hire business Kwik-N-Ezy NZ Limited. Its lease runs through to 2023.
“Level one has been extensively refurbished and provides for approximately 870 square metres of stunning contemporary, character office accommodation, with a private decking area at the rear,” Mr Haydock said.
“This recently refurbished building represents state-of-the-art, contemporary high-stud office space combined with an abundance of car parking – in an offering which is bolstered by considerable long-term development upside. Rarely do such ‘turn-key’ buildings come to the market in the highly sought-after Newton area.”
Mr Bullick said the Dacre Street site was zoned Business – Mixed Use under the Auckland Unitary Plan. It also benefited from an additional height overlay allowing development up to 32.5 metres, substantially higher than the 18 metres usually permitted under this zoning, he said.
The Business – Mixed Use zone allows for residential activity along with mostly small-scale commercial activities such as offices, retail, food and beverage and healthcare.
Under the Unitary Plan, basic and maximum floor-area ratios have also been removed.
“When coupled with the Dacre Street property’s strategic CBD fringe location, this highly-favourable planning framework makes the site a strong prospect for future intensive residential development.
“Similar advantages have already helped give rise to a number of successful multi-storey residential conversions and new apartment developments across Newton and nearby Eden Terrace, with more under construction,” Mr Bullick said.
The surrounding area was today home to a mix of low to medium-rise office and apartment buildings from the 1980s to the early 2000s, he said.
“The property for sale is close to the CBD and motorways and a short distance from amenities including the University of Auckland, Auckland City Hospital and the Domain. It’s also handy to the retail and hospitality precincts of Karangahape Road, Ponsonby Road, Symonds Street, Mt Eden and Newmarket.
“Dacre Street is a few hundred metres from the future Karangahape CRL station, which will be topped with a multi-storey building development and is expected to stimulate new commercial property activity in surrounding areas,” said Mr Bullick.
The CRL will extend from Britomart Station in downtown Auckland up through Newton and Eden Terrace, to meet the Western Line at a redeveloped Mt Eden Station – greatly boosting rail passenger capacity and cutting travel times.