The property for sale at 85 Grafton Rd is the grey building at bottom centre. Photo / Supplied
The property for sale at 85 Grafton Rd is the grey building at bottom centre. Photo / Supplied
A fully leased city fringe investment property with future development potential is for sale in the tightly held Auckland suburb of Grafton.
Colliers International brokers David Burley and Kris Ongley are marketing 85 Grafton Rd, for sale by deadline private treaty closing at 4pm on Thursday August 16, unless it is sold earlier.
Located on a 675sq m freehold site on the western ridge of Grafton Rd, the property is in one of the city's most desirable city fringe commercial areas.
"Here's an opportunity to acquire a prime investment property close to Auckland City Hospital, the education precinct and the CBD," says Burley.
"The property comprises a well-presented, four-level commercial building with a net lettable area of 404sq m and 16 car parks.
"It is fully leased to two commercial tenants, with one lease expiring in 2019, potentially making the property suitable for owner-occupiers.
"Investors will be attracted to the strategic location and superb access to infrastructure, including the Grafton motorway interchange, and numerous bus and train routes.
"Developers will appreciate the ability to draw on holding income while planning to unlock the future of the site, zoned to allow for mixed use development of up to 27m."
Burley says the property has 16m of profile to Grafton Rd, which acts as a critical link between the city and Parnell, Newmarket and Mount Eden.
"This property couldn't be more strategically located. It is directly opposite Auckland City Hospital and within easy walking distance of numerous amenities.
Located on the western ridge of Grafton Rd, the property is identified by a blue border. Photo / Supplied
"The property is five minutes' walk from Auckland Domain, 10 minutes' walk across Grafton Bridge to Symonds St and the university precinct, and 15 minutes' walk to the CBD.
"Nearby Park Rd is a major bus route, while plans are in place to improve pedestrian access to the Parnell Train Station from the Grafton Rd side of the Domain.
"All of this has helped to ensure the area is in strong demand from tenants, especially among medical-related industries."
The Business Mixed Use zone allows for a mix of office, residential, accommodation, medical and educational development.
Ongley says the rectangular site, which is split across two titles, slopes steadily towards its western boundary.
"The well-presented commercial building has office accommodation over three levels, along with storage and covered car parking on a basement level," he says.
"The building is accessed via a small concrete pedestrian bridge, which extends from Grafton Rd to the middle office floor, or by cobble paving to the ground floor entrance.
"A sealed concrete driveway to the north of the property provides access to the basement, as well as a timber podium to the rear."
Tenant Kaseya NZ Ltd occupies 232sq m on the top levels. The company is signed to a five-year lease returning $88,123 net in annual rent.
Two rights of renewal of three years each extend the total lease term to June 2026. The tenancy includes 11 car parking spaces, which are currently under-rented at $25 a park per week.
ABB Limited, which also occupies the building next door, occupies the 172sq m ground floor.
It is signed to a month-by-month lease earning $120,000 net annual rent.
The property is generally built of reinforced concrete columns and beams, painted fibre cement exterior walls, single-glazed aluminium joinery, and corrugated iron roofing.
It has an A+ seismic rating (IEP) from Auckland Council.
The bottom two office levels have carpet tile floors and suspended ceilings, while the top level has timber floors and a gabled ceiling that follows the roofline.
Wall-mounted air conditioning units with exterior extraction are fitted throughout.
Burley says wider Grafton is characterised by beautiful historic buildings, as well as more recent commercial, medical, educational and residential development.
"Situated between the Auckland CBD, Parnell and Newmarket, this small suburb is a prime target for investors and developers seeking value add value opportunities.
"The number of developed sites on Grafton Road reaffirms the desirability of locating an office, medical or accommodation offering in this location."
