Henderson double act has split-risk benefits
A trade retail industrial property in the low-vacancy Henderson growth node is generating interest among purchasers searching for add-value opportunities.
Two stand-alone buildings on 2493sq m of freehold land at 159 Central Park Drive occupy a prime road front position less than 400m from the intersection with major arterial Lincoln Rd and 650m from the Northwest Motorway interchange.
Bayleys Northwest director Craig Smith says the property is offered to a market starved of well-positioned investments with future add-value characteristics.
“Where some tenants are purchasing premises to mitigate rising rental rates, demand remains high from industrial occupants, particularly along the western corridor, which is a critical link to Auckland’s north and streamlined transit to the central city.
“Investors are taking notice of this intense competition for existing space, which coincides with a slowdown in construction activity. This has fuelled their growing interest in leveraging the current supply shortage.
“At the same time, the persistent scarcity of land available for future development is prompting increased attention toward existing assets with greater value-capture potential.”
Smith is marketing the property with colleague Beterly Pan for sale by deadline, closing at 4pm, Wednesday December 6, unless sold prior.
It features two units occupied by four tenants, constructed in the late
1990s and set back from the road in a Business–Light Industry zone, with
34 carparks and convenient vehicle manoeuvrability.
Unit A comprises 371sq m of showroom and warehouse accommodation occupied by paint and coatings company Dulux and used vehicle wholesaler Croydons.
Unit B spans 675sq m of warehousing and showroom space occupied by automotive paint supplier Autopaint and indoor garden and hydroponics specialists Hyalite NZ.
The tenancies generate a total annual net income of circa $234,800 plus GST.
Pan says the property’s configuration and current tenancy profile provide a split-risk opportunity for future leasing, with scope for rental upside potential.
“Unit A is currently occupied on a month-to-month basis by both tenants, presenting a unique opportunity for a new occupant to secure the unit and commence trading.
“Vacancies rarely become available in this tightly-held location, with the existing additional rental income from the tenancies already in place set to enhance the appeal of the opportunity for new occupiers. Alternatively, the purchaser may look to initiate a more intensive refurbishment programme to unlock the property’s enormous potential.”