Split-risk Albany industrial with uplift potential
Two industrial units with established tenants are for sale in Auckland’s Albany precinct, offering a chance to acquire a split-risk investment with potential for rental uplift.
Situated on a high-profile eastfacing site, the adjoining buildings at 7-9 Cowley Pl offer motorway access via the nearby Greville Rd interchange.
They have been occupied for a combined 26 years by two longstanding tenants, European Ceramic Tiles and Plumb’In Bathrooms. Both tenants have indicated they would like to remain after their leases expire, providing scope for a new owner to add significant value.
Colliers International has been appointed to market 7a and 9b Cowley Pl for sale by deadline private treaty closing at 4pm Tuesday, March 17, unless sold earlier.
Janet Marshall, director of Colliers North Shore, says it is a chance to acquire a split-risk investment in a sought-after industrial location.
“This is a truly premium offering that provides quality improvements, strong tenant covenant and a highly accessible location. The property comprises two adjoining industrial units, constructed in 1998-99, situated on a 3740sq m freehold site with ample car parking.
“The longstanding tenants return a combined $275,800 in net annual rental income plus outgoings. With high tenant demand, record low vacancy and rising rents in the area, there is scope for uplift when the leases expire over the coming two years.”
Matt Prentice, director of Colliers North Shore, says 7a Cowley Pl has been occupied by European Ceramics Tiles Ltd since 2010.
European Ceramics has recently renewed a three-year lease returning $170,000 plus GST in net annual rent. There is one market rental review in December 2020, with lease expiry in December 2022.
Unit 7 comprises a 1276.6sq m building with warehouse, office, showroom and amenity areas. There is ample on-site car parking, with 26 allocated spaces.
The 1001.4sq m warehouse predominantly has an 8.2m stud height, plus an additional medium stud area. The main entrance is via a 6.5m-high roller door.
The 273.1sq m air-conditioned office area includes three partitioned offices on the ground floor and six on the first floor.
The second unit at 9b Cowley Place has been occupied by Plumb’In
Bathrooms since 2003. Bathroom and Kitchen Factory Shop Ltd, trading as Plumb’In Bathrooms, is on a threeyear lease returning $105,800 in net annual rent, plus GST and operating expenses. The lease expires in April 2021.
Unit 9 comprises an 830.2sq m building including warehouse, office and amenity areas. There are 12 allocated car parks. The main warehouse has 501.6sq m of high stud accommodation and can provide for a gantry unit. There is also 134.7sq m of low stud warehousing and a storage mezzanine of the same size.
The 59.2sq m office area is split across two floors. Amenities include a lunchroom and toilet on the ground floor and a toilet and shower on the first floor.