Super-City on steroids offers wide range of investment options
Auckland’s supercharged growth – not only on the city fringes but also the revival of traditional suburban strips and the rapid expansion of more recent industrial precincts – presents commercial property investors and owner-occupiers with an almost unlimited variety of opportunities.
The breadth of options is underscored by two properties among the 28 profiled in Barfoot & Thompson’s second Insite Portfolio for 2021.
■ 435 and 437 Manukau Rd, Epsom, are character buildings in one of Auckland’s longest established and busiest suburban shopping strips.
Melissa He and John Zhang of Barfoot & Thompson Commercial, Auckland Central, are marketing the two freehold titles with a combined total 386sq m of land, their two attached buildings fully leased to two longestablished tenants.
The property is situated on the busy corner of Manukau Rd and Great South Rd.
435 Manukau Rd is a two-storey building with a retail/ office combination with a floor area of approximately
138sq m. It is well presented and leased to 3A printing and copy, a well-established local business operating for over
20 years.
437 Manukau Rd is a single-storey building with high ceiling features. It has a floor area of approximately 115sq m and is extremely well maintained by the famous Raven hair salon, well known to locals since 1989.
He and Zhang say the nature of the two adjoined buildings presents opportunities for development to maximise the great potential of the location.
The property is zoned Business - Local Centre Zone, which applies to a large number of small centres throughout Auckland generally located in areas of good public transport.
It primarily provides for the local convenience needs of surrounding residential areas, including local retail, commercial services, offices, food and beverage and appropriately scaled supermarkets.
The zoning requires a mix of activities within the local centre. Expansion is considered appropriate if it provides greater social and economic well-being benefits for the community.
Provisions typically enable buildings up to four storeys, enabling residential use in upper floors. It’s required to be designed to a high standard which enhances the quality of the centre's streets and public open spaces.
435 Manukau Rd currently returns $35,000 per
annum for each of two leases which have one two-year right of renewal and are due to expire on 1 August 2025.
437 Manukau Rd currently returns $35,000 per annum on each of two leases. Both tenants are keen to stay.
This property is being marketed by auction closing at
10am, Wednesday 25, at 34 Shortland St, Auckland CBD.
■ In contrast, Gary Seekup and Bruce Jiao of Barfoot & Thompson Commercial, North Shore, are marketing Unit
3C William Pickering Drive, North Harbour, a fully leased, split-risk investment opportunity in a tightly held industrial precinct.
Seekup and Jiao say it’s an exceptionally positioned roadfront property with profile to the district’s busiest intersection, Bush Rd and William Pickering Drive. Industrial property in this area is characterised by historically low vacancy rates and keenly sought by investors.
One of six units in the parent development, the 549sq m building is concrete block construction with a long-run steel roof and extensive aluminium-framed glazing, allowing ample natural light.
The layout comprises a high-stud warehouse with a suspended ceiling, adjoining open-plan office, showroom and amenities over two floors.
A full-height roller door provides access to the warehouse. Two drive entrances to the business park provide easy vehicle access to the road and nine on-site carparks.
Jiao and Seekup point out that in addition to a broad range of industrial applications, the property has resource consent for an office, 24-hour sports recreation and caf retail use, offering additional freedom in the scope of operations.
The property is fully tenanted with three independent leases returning $131,000 per annum. A 126sq m groundfloor tenancy currently returns $42,000 per annum on a four-year lease, commencement pending.
A second ground-floor tenancy of 278sq m returns $55,000 per annum on a four-year term expiring 31 May
2029 and the first-floor tenancy, covering 142sq m, returns $34,000 per annum on a three-year term with a similar right of renewal, expiring 31 July 2027.
The property is being sold by tender closing at 4pm,
26 August, at 129 Hurstmere Rd, Takapuna, unless sold prior.