A prominent residential building in the sought-after Auckland city fringe suburb of Eden Terrace offers a wide range of buyers the opportunity to secure a split-risk investment property with future growth potential and long-term upside.
12-14 Nikau Street, Eden Terrace is a 722sq m building with 13 residential units spread across two levels with an additional level of secure basement parking. The property is strategically located on a 606sq m site that is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.
The property is fully leased on a range of short-term tenancies and provides $280,800 in total gross rental income per annum, a significant amount of holding income for any prospective purchaser.
The freehold site is located on the doorstep of the new Mount Eden train station for the City Rail Link, which is due to be completed in 2024, offering excellent future connectivity for occupants. The property is also zoned for Auckland Grammar School.
Colliers Associate Directors Jonathan Lynch and Kris Ongley have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 9 December, unless sold prior.
The freehold site is rectangular in shape with a Nikau Street frontage of just over 20m and a side boundary of approximately 30m.
Located on the southern side of Nikau Street, the property sits approximately 80m from the intersection with Mount Eden Road. Following excavation to accommodate the current building, the contour drops steeply away from Nikau Street to the south-east.
One further car park fronts the Nikau Street boundary together with vehicle access points to two garages and the basement car park driveway. There are 12 car parks in the basement.
The building was constructed in the 1980s and has undergone a series of mostly cosmetic renovations and internal upgrades since, leaving it in excellent condition for the current occupants.
Lynch, Associate Director of Investment Sales at Colliers, says the property allows for future growth given there is approximately 150sq m of developable land behind the building.
“The mixed-use zoning of this property will hold significant appeal for a range of prospective purchasers who will see the long-term value on offer, coupled with the flexibility to pursue a number of different projects,” Lynch says.
“There is significant holding income available for the new owner and properties in this popular location will always experience huge demand among potential occupiers. This steady rental stream will provide the new owner with a level of security while they scope their next moves.
“The National Policy Statement on Urban Development, which will require planning rules to allow for greater development in existing urban areas, including a minimum build height of six-storeys within walkable distance of rapid transport stops, means this property comes loaded with potential if the new owner wishes to reposition it in the future given its proximity to the City Rail Link.”
The City Rail Link will allow commuters to reach Britomart from Mount Eden station in nine minutes and will have the capacity to move 54,000 people per hour at peak times.
Ongley, Associate Director of Investment Sales at Colliers, says Eden Terrace is a popular suburb given it is only 2km away from Auckland’s CBD, which allows occupants to enjoy what the city has to offer.
“The property has a vast amount of potential given the flexible zoning and prominent city fringe location, which is less than 100m from Mount Eden Road,” Ongley says.
“We expect there will be significant interest in this property and encourage all prospective purchasers to do their due diligence and contact us immediately.