Workshop and office property has potential

The 695sq m property at 8 Margot St is highlighted by the blue border. Photo / Supplied

A freehold commercial property for sale in Newmarket offers multiple opportunities for owner-occupiers, investors and developers.

The 695sq m property, at 8 Margot St, is zoned Business Mixed Use, which allows for a multitude of development options up to 18m in height.

Colliers International is marketing the property for sale by deadline private treaty, closing at 4pm on Wednesday August 21, unless sold earlier.

Newmarket sales specialist David Burley says it is a chance to secure a well-located investment with abundant potential to add value.

"It comprises a workshop and office tenanted by a car dealership on a short-term lease.,

"The property is under-rented at $94,406 net per annum, providing scope for investors to add value almost immediately through rental uplift.

"The next rental review is upon renewal in October, with final lease expiry in October, 2021. Owner-occupiers will appreciate the chance to secure a property with holding income, plus plenty of spare land.

"The property also presents a short- to medium-term repositioning opportunity to a higher yielding use, maximising the height limit and development controls associated with its zoning.

"It is located within the coveted Double Grammar school zone, making it an attractive residential redevelopment proposition.

"With multiple options, holding income and a great location, this property will have broad appeal s."

The property comprises 291sq m of warehouse and office space on freehold land with 16 car parks.

The workshop, built in the 1950s, provides low-medium stud warehouse space. The small office is on the western boundary of the property.

Both buildings are occupied by Auckland City BMW Ltd, which operates a car sales yard on nearby Great South Rd.

Colliers' broker Simon Child says the property has had the same owner for five decades. "The property is superbly located in an area with strong demand and lots of potential tenants.

"It is particularly attractive to automotive users, with numerous high-end car dealerships nearby."

Child says property in the area will benefit greatly from Scentre Group's redevelopment of Westfield Newmarket. "The shopping centre is undergoing a $790m redevelopment that will make it the largest Westfield in the Southern Hemisphere.

"Due for completion this year, Westfield Newmarket will transform the surrounding area and drive demand for all types of development. "

Child says the property provides easy access to Auckland's motorway network, being positioned close to the northbound and southbound onramps to State Highway1. It is 900m to Newmarket train station and close to key bus links along Manukau Rd, Great South Rd and Broadway.

"This accessibility, plus Newmarket's attraction as a retail hot spot, make 8 Margot St ideal for a range of uses."

- Material supplied by Colliers International