Long-term tenant in Wairau Valley
A stand-alone warehouse and office building with a strong tenant covenant in Wairau Valley presents prospective purchasers with the opportunity to acquire a passive investment with a steady rental stream.
131-133 Sunnybrae Rd houses an 834sq m building on a 2163sq m freehold title zoned Business–Light Industry Zone under the Auckland Unitary Plan.
Northern Foods, a food service specialist that has a 25-year history of successfully supplying bakeries, restaurants, cafes, caterers, private hospitals, retirement homes, aged-care facilities and other consumers, is the long-time tenant. They recently took up a lease renewal and the final expiry is 31 August 2028.
Total annual rental income is $137,068 plus GST but that figure is set to rise to $159,420 on 1 September 2024. Another market rent review is scheduled for September 2026.
The highly visible property has dual rollerdoor access, possesses excellent exposure to passing traffic and is easily accessed with parking for staff and suppliers.
Colliers directors Matt Prentice, Shoneet Chand and Jack Tuson are marketing the property via deadline private treaty closing at
4pm, Wednesday November 15, unless sold prior.
The multi-level property has a 530sq m warehouse alongside 117sq m of ground-floor office and showroom space. The first-floor office spans 124sq m, while there is also a 63sq m mezzanine lunchroom. There are 14 carparks.
Prentice says the highly functional property also has an A-grade NBS rating. “The vendor has given us clear instructions to present them with all offers and we think there will be considerable interest in the market given the strong underlying investment fundamentals.”
Chand says favourable lease terms will appeal to buyers seeking an investment with a strong tenant covenant. “The current tenant has occupied this premises for more than 20 years, which shows their commitment to this property and location, which has clearly served them well for a long period of time,” Chand says.
“The rental increase that kicks in next year means there is strong rental growth, while the opportunity to conduct a further market review in 2026 is another positive.”