A car park for sale on one of the most prominent sites on Auckland’s Karangahape Road is tipped to give rise to a high-density apartment development.
The more than 1,280-square metre property at the corner of Karangahape Road and Gundry Street is the last remaining site without buildings along the colourful ‘K Road’ strip.
Positioned on the edge of Auckland’s CBD, it lies towards the western end of the famed retail and commercial precinct which has been rejuvenated by a recent council upgrade.
A future City Rail Link station is expected to bring further life to the area.
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Currently used for commercial outdoor car parking and advertising signage, the site for sale has considerable development potential underpinned by intensive City Centre zoning.
James Chan of Bayleys Real Estate said the property was fully leased to Wilson Parking and outdoor advertising firm APN Outdoor, generating total net rental income of $252,474 plus outgoings and GST per annum.
“This represents valuable holding income for a developer. A new owner will have the option to boost this income significantly by upgrading the existing billboard to digital while they decide the best approach for the site. The potential gains have been demonstrated by numerous property owners who have maximised their returns by upgrading to digital signage in a trend playing out across the CBD and city fringe.
“The site for sale is ripe with possibilities, particularly for a high-density residential apartment project. The absence of existing buildings means any future development will be spared substantial demolition costs.
“As a result, this site is sure to be the focus of intense interest among residential developers and potential land-bankers,” said Chan.
The property at 520-536 Karangahape Road and 2 Gundry Street, Auckland, is being marketed for sale by James Chan and Owen Ding of Bayleys Auckland Central.
Sale is by way of a tender closing on Friday 8 April, unless it is sold earlier.
Chan said the site’s flexible Business – City Centre zoning under Auckland’s unitary plan makes it suitable for apartments, an integrated residential development, offices, retail or hotel accommodation.
“Its north-facing aspect, and position amid a hive of entertainment and amenity and key transport links suit it particularly well for an apartment project,” said Chan.
Ding said the site had a building height allowance of up to 15 metres, subject to requirements aimed at maintaining the distinctive character of the area’s built form and streetscape.
“This is a superbly located site with dual street access to Karangahape Road and Gundry Street. It sits around 100 metres from the key intersection of Ponsonby, Great North and Newton roads and is a few minutes’ walk from Queen Street. It’s also very handy to the Southern and Northwestern motorways.”
Ding said the location was also five minutes’ walk from the future Karangahape CRL station, which is expected to be a catalyst ramping up commercial property demand and activity around busy stations.
With completion expected in 2024, the CRL is designed to enable a doubling of rail capacity, with better travel options and journey times and more trains.
“K Road is already seeing substantial gentrification. The Karangahape Road Enhancements project has added further to the dynamic street life to create an accessible, people-friendly public space.
“Revitalisation will continue in coming years, with new apartments, boutiques and eateries. Apartment developers and retailers have been attracted by the area’s vibrancy and proximity to Ponsonby Road, the CBD and the motorway network.
“The property for sale is perfectly positioned for access to the retail, café and dining experiences of ‘K Road’, along with those of Ponsonby Road, Queen Street and the CBD – ensuring there is plenty of amenity for future residents,” said Ding.
-Article supplied by Bayleys
