Mixed-use 716sq m redevelopment site in Auckland retail hotspot
A mixed-use redevelopment site less than 100m from the largest Westfield shopping centre development in the Southern Hemisphere centre is for sale with the bonus of holding income.
The 716sq m property at 7 Edgerley Avenue is superbly located in Auckland’s retail hotspot of Newmarket, close to both the northbound and southbound motorway onramps.
Business Mixed Use zoning allows for a wealth of redevelopment options including retail, hospitality, office, residential, short-stay accommodation, or a mix of these.
The property returns $108,000 in annual holding income until the site can be redeveloped upon final lease expiry in January 2023.
The site’s location on the block next to Westfield Newmarket makes it a particularly appealing investment for astute developers.
The shopping centre is undergoing a substantial $790 million redevelopment that will make it the largest Westfield in the Southern Hemisphere.
Due for completion this year, it will feature breathtaking architecture and an extensive range of speciality retail offerings, including Auckland’s first David Jones department store.
Newmarket sales specialist David Burley of Colliers International says the impact of Scentre Group’s redevelopment cannot be overstated.
“The scale and quality of Westfield Newmarket will positively transform the surrounding area for good.
“Newmarket will become the premier destination not only for the people of Auckland, but for all New Zealanders seeking a world-class shopping and dining experience.
“Demand for all types of development in the surrounding is set to increase as a result, making the sale of 7 Edgerley Avenue a superb opportunity to capitalise on the transformation of Auckland’s premier retail suburb.”
Burley is marketed the property for sale by deadline private treaty with Colliers International Investment Sales Broker Simon Child and Site Sales Director Josh Coburn.
Offers close at 4pm on Wednesday 10 April, unless it is sold earlier.
Coburn says the property is located on the northern side of Edgerley Avenue, adjacent to the Newmarket Viaduct.
It comprises an industrial workshop, originally developed in the 1980s, providing low to medium stud warehousing with mezzanine storage and two levels of associated offices and amenities.
“Given the location and highest and best use of the site, the improvements provide limited added value,” says Coburn.
“The site therefore presents a short- to medium-term redevelopment opportunity to a higher-yielding use that maximises the height limit and development controls of its zoning.”
The regular-shaped site slopes gently from street level towards the northern boundary. Business Mixed Use zoning allows for development of up to 27m in height and a broad variety of uses.
The lease to Newmarket Panelbeaters Limited, trading as Newmarket Panel and Paint, contains no rights of renewal, which means it can be unlocked for development in under four years.
Child says the site is located just off Broadway, strategically positioned in one of Auckland’s most popular and recognisable city fringe suburbs.
“The southern end of Newmarket is where multiple land uses converge, including high-street retail, shopping centres, car dealerships, offices, hospitality offerings and education providers, making the development opportunities almost endless.
“The immediately surrounding area is typified by a variety of retail outlets, commercial office space, accommodation, terrace and apartment buildings and single dwellings.
“A newly completed apartment and short-stay accommodation development, The Edgerley, is located at the end of the cul-de-sac street.”
The site offers easy access to Auckland’s motorway network, being positioned in between the northbound and southbound onramps to State Highway 1.
It is also near the intersection of three main arterials – Great South Road, Manukau Road and Broadway.
All three roads are major bus routes, while Newmarket Train Station is located some 900m to the northeast. Auckland CBD is a short 5.5km drive away.
The property is in the Double Grammar Zone as well as being close to private schools St Cuthbert’s, Diocesan, King’s School, St Kentigern Boys’ School, and the Dilworth primary and secondary campuses.
The nearby Westfield Newmarket occupies a 4.5ha site. Once completed, it will include 74,000sq m of retail space with more than 230 specialty stores.
Food and beverage options will include a market-style fresh food experience, boutique cafes, popular casual eateries and fine dining.
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