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Rural residential investment block with huge development potential placed on the market for sale

A block of five adjoining residential properties on a substantial portion of land in the established and prosperous Hauraki Plains township of Ngatea has been placed on the market for sale.

The 4,735-square metre corner block facing directly onto State Highway 2 consists of five homes sitting on individual titles generating a combined annual rental income of $97,084. The block is zoned Industrial 7A under the Hauraki District Council Plan.

Sitting on the border of Ngatea’s urban boundary, the block has a large Farmlands warehouse retail premises and sealed yard on one side, and a cement plant and engineering premises on the other.

The land and buildings located at 105 Orchard Road West in Ngatea are now being marketed for sale by tender through Bayleys Hamilton, with tender process closing on June 29. Salesperson Josh Smith said the property, and its configuration and zoning, would appeal to a broad range of potential buyers – from residential investors through to commercial developers.

“The flat corner site location benefits from dual street frontages – with entrance points off both Orchard Road West/State Highway 2, and off Kohunui Street which services a multitude of industrial tenancies including motor vehicle and automotive firms, and a self-storage business,” said Smith.

“The predominantly industrial tenancies running along Kohunui Street delineate Ngatea’s residential neighbourhood to the south-east – with farmland sitting just a few hundred metres away to the west.

“Accordingly, development of new commercial or industrial tenancies on the Orchard West Roadblock makes obvious sense.”

Smith said the real potential for the Orchard Road West property lay in its development upside – with the ability to take advantage of the property’s strategic location on the urban outskirts of Ngatea township, and its high-profile positioning alongside one of the busiest roads in the Coromandel Peninsula.

“Commercial development options for the site range from the creation of a block of mid-sized terraced light industry units of around 250 – 300-square metres for occupancy by trades-based tenants, through to one or two large warehousing structures serviced by what could be a central parking space, he said.

“There is a dearth of both of these building configurations within Ngatea, so any construction along either of these lines would fill a demand in the market for new modern premises in a high-profile location which has some 4,388 vehicle movements past it every weekday according to Waka Kotahi.

“Underpinning any development opportunities, the five residential tenancies will of course generate substantial holding income while any plans for new premises are scoped out and duly filed, and resource consent sought from the council.

“All of the tenants have indicated they are more than happy to stay on in the homes for the medium term, and longer if possible, as there are few if any other homes to let in this location.”

Smith said the single-level low maintenance standard design homes could also be kept as they are under existing rights use – with affordable rental housing at a premium, not only in Ngatea, but across the Hauraki Plains.

Four of the residences are ex-state houses, while the fifth dwelling is a new Keith Hay brand transportable home. The five individual but adjoining land titles range in size from 842-square metres up to 997-square metres – providing ample garden spaces, as well as separate garaging, and off-street parking for tenants.

“Subject to council consenting, there is also the possibility of adding minor dwellings or secondary dwellings to four of the addresses to further sustain a residential investment portfolio,” he said.

As a compact rural services town within a well-defined generally square-shaped boundary, Ngatea is strategically geographically located in the Hauraki Plains – with Thames to the North-East, and Paeroa to the South-West both within easily commutable distances. Agriculture is the predominant business activity in the surrounding area.

Orchard Road West is the main arterial route running through central Ngatea, and sustains a broad selection of retail businesses including food and beverage, fuel service stations, real estate agencies, and supermarkets, along with council offices.

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