Site in position to reap rail connection rewards

Art deco styled Metalworks building for sale at 4 Porters Ave, Eden Terrace.

A 1920s art deco-styled industrial building is up for auction in the central Auckland suburb of Eden Terrace and is being promoted as an asset ripe for redevelopment.

"This property is in an area that is set for a transformation," says Peter Kermode of Colliers International who, with colleague Jonathan Lynch, is marketing the Metalworks 88 building at 4 Porters Ave for sale by auction on March 13.

"The tenant is a metal fabricator who has leased the building through to 2015, providing holding income to an investor or owner occupier who needs a space close to the CBD and wants to add value," Kermode says.

The property with its distinctive arched roofline is on a site of nearly 1000sq m fronting Porters Ave. The 789sq m building, with office space at the front and a low stud warehouse at the rear, features a front concrete facade with four steel rollers doors. The interior comprises timber floors with some brick walls.

Kermode says the property's closeness to the Auckland CBD and the planned city rail link extension makes it a prime site for redevelopment.

"In short order the area will be rejuvenated through council's transport plans which will improve connections to nearby residential areas and Auckland CBD. The building is just 200m from Mt Eden rail station, which is scheduled for a major upgrade with a neighbouring building set to be removed in about two years' time as part of the plans to improve access to the station."

"The property is on the border with Mt Eden and just 30 metres from New North Rd leading into Kingsland. Residential property values in these suburbs have rocketed in the last year due to a shortage of Auckland homes close to the CBD," Kermode says.

He says the warehouse space is still functional and will provide a conservative holding income in the short term to give the new owner time to plan for any redevelopment.

The neighbourhood is zoned mixed use and is occupied by light industrial businesses such as storage facilities and mechanics.

"We are already seeing old light industrial businesses moving out of Eden Terrace to more affordable space further from the centre of the city while professional owner occupiers and tenants like graphic designers, media production companies and trendy boutique homeware retailers move in. Another trend we are seeing is the demolition of old light industrial structures in the city fringe to be replaced by apartment buildings."

Lynch says the new city rail link will increase both land values and rents.

"The 3.4km underground line will run between Britomart station in the CBD and the North Auckland Line in the vicinity of the existing Mt Eden station.

"The adjoining property has already been acquired by Auckland Transport and we understand it will be demolished to create green space adjacent to the rail network which will make the Metalworks property very desirable for conversion to office or residential uses. We expect good interest from owner occupiers or add- value investors