Triple investment potential at 30-40 Enfield Street, Mt Eden
Triple investment potential at 30-40 Enfield Street, Mt Eden
8 March 2014
Auckland, 8 March 2014 - At a time when commercial and residential space is in short and declining supply across Auckland, and vendors, buyers and tenants are clamouring for new apartment developments and city fringe office space, a large mixed-use character property with appeal to three different groups of investors has come on the market for sale at 30-40 Enfield St, Mt Eden.
Marketed by Warren Hutt and Harold McCracken of CBRE New Zealand on behalf of Arena Investment Management Limited, the strategically-located property is for sale by way of Private Deadline Treaty, with a closing date of Thursday 3 April 2014.
Warren Hutt, Senior Director Capital Markets for CBRE, says that 30-40 Enfield Street is a three-level office and retail building with excellent street frontage on a prominent corner site on Enfield and Mary Streets.
“The property was constructed in the 1950s and underwent an extensive refurbishment in 2002. With a generous NLA of around 3,281sq m and a total land area of 3,750sq m, this is a sizable piece of real estate that is increasingly hard to come by in popular Mt Eden.”
He adds that the character building sits on a large regular-shaped, freehold site, with 88m of street frontage to Enfield for the mixed-use zoned land.
“The building has a superb blend of spaces and mixed uses currently in place, with a ground floor retail space of 338sq m and a ground floor warehouse measuring almost 460sq m. There are some good-sized office spaces on the mezzanine floor, Level 2 and Level 3, ranging in size from 182sq m to 1,047sq m.
“It’s also a North-facing site which means office or residential would benefit from good light and sun exposure. With balconies on Levels 2 and 3, tenants can sit outside and soak up the afternoon sun with a glass of wine on Friday afternoons - a real draw card.”
Harold McCracken, Director Metro Services for CBRE, says that properties of this size, style and scope are rarely available in Mt Eden or anywhere in Auckland, presenting three investment avenues for astute investors and developers, including significant value-add opportunities.
“This is a truly exciting offering, an exceptional property that appeals to three different types of investors. This gives the building a major advantage in the current market.
“Firstly, the fact that a demolition consent has already been issued by Council means a smart developer could quickly make the most of an opportunity to demolish the building and then create a new residential complex or a state-of-the-art office facility.
“The property is currently vacant, so an astute developer could secure a short-term tenant to generate income while planning is underway for a complete demolition and overhaul to create maximum value. We know that serious developers will be looking at 30-40 Enfield Street as a great opportunity to develop a city fringe office building for large or mid-sized office tenants.”
Hutt adds that JASMAX have already created a scheme for the development of a 67 apartment facility with three commercial/retail areas within the site. Equally, some developers may look to create a more intensive development to maximise margin.
“It scopes the potential for a lucrative development that places tenant comfort and sophisticated, efficient design at the centre of high-quality, highly-desirable city central living.”
Hutt adds that the second group of investors to whom the property will appeal is owner occupiers.
“The property presents stylish character space for owner occupiers to buy and upgrade to a higher New Building Standard level and then occupy the building. This would suit a variety of occupiers, including companies, churches and educational organisations, among others.
“This building has character and personality, and it offers opportunities for organisations to stand out and make a statement via their premises. With essentially no vacancy for CBD office spaces, organisations are increasingly looking at the fringe as an attractive, more cost-effective location from which to base their operations. With its excellent connections, accessibility and nearby amenities, 30-40 Enfield Street is ideally placed for the future.”
McCracken says that the third investor group to whom the building will appeal is the investor group.
“Investors will see the potential to upgrade the building and then rent it out. With strong ground floor retail presence and stylish character spaces above, the building offers strong potential for a mix of revenue streams.
“For this reason - and many others - we have already had a number of interested parties.”
Located on the corner of Enfield and Mary Streets in busy Mt Eden, the property is well-positioned to take advantage of the many commercial and residential developments in the area.
McCracken says: “As a strategically located city fringe location, Enfield Street is just minutes away from the CBD, Newmarket and the Mt Eden Village. The Eden Business Park adjoins the property and the area has become home to several high-end retail brands including Sabato, Cita and Bo-Concepts.”
He adds that the property has excellent rail and bus connections and is close to major motorway connections and major arterial routes, including Mt Eden Road.
McCracken notes that if a developer took advantage of the opportunity to redevelop the site into a residential apartment facility, the site’s Double Grammar zoning and close proximity to Diocesan and St. Cuthbert’s schools would present a lucrative draw-card for potential owners.
“With a good range of retail, bars, cafes and terraced housing, 30-40 Enfield Street offers the best of Auckland’s trendy city fringe lifestyle for office tenants or potential residential owners.”
Hutt says that Auckland’s fringe office market is powering ahead, the residential market is still in a very strong state, and the CBD and fringe apartment market is going from strength to strength, with rising median sale prices since 2011.
“With a rapidly growing population and simply not enough homes, opportunities to develop state-of-the-art, city fringe apartment buildings are hot property. Consider the interest new apartment developments like The Isaac and The Square in Grey Lynn are receiving right now. The office sector is equally in demand, with low vacancy rates for Mt Eden office spaces.
“The demand is there, the opportunity is there, the consent is there - and we know the property market is going to act fast on the Enfield Street property because they know the value is there too.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.