Grafton property provides plenty of possibilities

The 807 sq m building constructed in 1984 on 615 sq m of freehold land at 79 Grafton Rd is for sale by tender closing 4pm, Tuesday, December 3, 2019 unless sold prior. Photo / Supplied

A four-level office building in Grafton on a site that is zoned for mixed-use development up to a height of 27 metres offers a multitude of options for its next owner.

The 807 sq m building constructed in 1984 on 615 sq m of freehold land at 79 Grafton Rd is for sale by tender closing 4pm, Tuesday, December 3, 2019 unless sold prior.

"Available for the first time in over 30 years, this offering provides an opportunity to secure a well maintained standalone building with 14 car parks and profile in a highly convenient and tightly-held CBD fringe location," says Bayleys senior broker Phil Haydock. He is marketing the property with Bayleys Auckland City & Fringe colleague James Were.

"Except for one office suite, the property is able to be offered with vacant possession, which makes it an attractive proposition for owner occupiers and add-value investors, particularly as the building has an A Grade seismic assessment.

"Given its high profile position and favourable Business – Mixed Use zoning, with height variation control permitting development up to 27 metres, the property also has untapped add-value potential for refurbishment, conversion to residential and/or constructing additional floor area."

The building is set back slightly from the street frontage, providing room for three parking spaces by the front entrance with a further 11 at the rear of the site. Haydock says the property has been attractively landscaped with the building surrounded by a variety of mature trees.

It is currently configured into multiple commercial office suites, with individual floors ranging from 166 sq m to 236 sq m. The property is generating short-term holding income of approximately $119,293.

James Were says this income could be increased relatively quickly by upgrading the office accommodation and leasing up vacant space. However, most of the property's value lay in the underlying land zoning which allowed for much more intensive development of the underutilised, rectangular site across a wide range of potential commercial and/or residential uses.

He says the site's position within the highly sought-after Auckland Grammar School zone increases it attractiveness for residential development. "Its location between Auckland Hospital and the city's two main universities also means it would be well positioned for student accommodation.

"It's in a popular commercial precinct on the CBD border and is also close to Auckland Domain, Newmarket, Parnell and Mt Eden with excellent access also to motorways," Were says.

"The Grafton Gully motorway interchange is just down the hill providing connections to the northern, southern and north-western motorway systems. This places Avondale, Greenlane and North Shore all within 10 minutes' drive off peak. As the CBD and Newmarket expand, so too will the value of this central Auckland location."