A substantial, commercial building adapted for educational use offers owner occupiers, add value investors, and developers a diversified opportunity to secure scale, income, and long-term adaptability in one of Auckland’s most connected town centres, Bayleys brokers say.

Bayleys Commercial director Ranjan Unka, together with colleagues Michael Nees and Geoff Wyatt, is marketing the freehold site at 12-16 Gordon Road for sale by deadline, closing at 4pm on Thursday 30th October 2025 (unless sold prior).

The 2,207sqm (more or less) building occupies an approximate 1,958sqm landholding, with 32 fully secured car parks – a significant advantage in the locale.

Currently returning a net $371,422 plus GST per annum from an education sector tenant with a current lease term through to December 2026, the property provides holding income while offering a wide spectrum of future possibilities.

Unka says it has been utilised as the tertiary campus for the New Zealand Management Academies (NZMA), and prior to that, the Otahuhu Police Station.

The building has been purpose-fitted for education and training. Its existing configuration includes classrooms, partitioned offices, a commercial kitchen, gym facilities, and lift access across all three levels. Each floor can be independently leased, allowing for multi-tenancy income streams or a large-scale single occupation.

“Adaptability is the asset’s defining feature. The property is equally well-suited for education providers, training organisations, medical or community operators, or corporate occupiers.

“Alternatively, its size, layout, and zoning classification provide a compelling platform for repositioning into residential or short-stay accommodation – aligning with the city’s ongoing demand for build-to-rent and housing solutions.”

The site is zoned Business – Town Centre under the Auckland Unitary Plan, enabling a variety of potential uses, including commercial, community, and residential activity.

The brokers say a seismic assessment of 113 percent of New Building Standard (NBS) strengthens the property’s credentials as a low-risk, future-proofed holding.

Of demand for assets of this nature, Bayleys Commercial, Investment and Development Sales associate director, Michael Nees, says that add value investors are targeting properties that deliver both near-term cashflow and strategic long-term potential.

“Today, flexibility is a critical investment theme. Buildings that can transition between commercial, community, and residential uses provide resilience against shifting market dynamics.”

Otahuhu itself is undergoing a resurgence as Auckland’s southern centres capture the benefits of major infrastructure investment. Anchored by the modern bus-rail interchange, Otahuhu has become a multi-modal transport hub with direct links to the CBD, Airport, and surrounding employment zones.

“The precinct benefits from proximity to Sylvia Park, Middlemore Hospital, and powerhouse industrial precincts such as Penrose and East Tāmaki – providing occupiers with access to both workforce and amenity,” Nees says.

“With continued population growth on the cards for New Zealand’s largest city, demand is rising for cost-effective, well-connected space in suburban town centres.

“Otahuhu is strategically positioned at the convergence of State Highways 1 and 20, making it a logical base for education providers, healthcare operators, and community-focused organisations.

“The ability to generate immediate holding income while unlocking future opportunities makes it a diversified proposition in the South Auckland market. Whether retained as an income-generating investment, repositioned for new occupiers, or converted to residential accommodation, the subject property provides a foundation of scale, location, and resilience that will appeal to a broad range of sophisticated buyers.”