Vast range in First 24 portfolio
Barfoot & Thompson’s Commercial division has launched into the new year with the release of First 24 — a curated portfolio of its best properties on the market.
Tailored to attract investors, developers and owner-occupiers, this issue boasts 10 properties for sale via deadline private treaty, two for auction, two open for tender, five for sale by negotiation, two with a nominated asking price and three properties for lease.
This release comes amid a notable uptick in buyer interest, along with the prediction by Barfoot & Thompson Commercial manager John Urlich that “2024 will be a good year to invest.”
In his introduction to the company’s First 24 portfolio, the tenth issue in the series, Urlich says:
“The post-Covid years have seen central banks seeking to address the persistent inflation that is a hallmark of global economies, which has made conservative property investing over the last two years challenging.
“Global inflation rates however are decreasing and the data from the US and Europe is compelling. Are we right in assuming that an OCR cut may be timed for the third quarter of this year?
“We are not alone in making this prediction. Regardless, it is clear that countercyclical positions will abound and 2024 will be a good year to invest.”
Asked to highlight top picks from the portfolio, Urlich and his team came back with the following opportunities in Wiri, Newmarket, the CBD and North Shore.
■ First up is a prime commercial property at 1185 East Coast Rd, Redvale. This is the first time this significant North Shore holding has been on the market in 36 years, and with its exceptional rural positioning on a sprawling 4.4ha freehold block, it presents an exciting prospect for investors.
Zoned as Rural—Countryside Living and with approved resource consent to provide for seven tenancy areas — five of which are occupied — 1185 East Coast Rd is for sale by tender closing at 4pm, February 29.
Gary Seekup is marketing the property with his Barfoot & Thompson Commercial colleague Bruce Jiao. Seekup confirms the current lease areas have an assessed annual net market rent of $390,114 plus GST, and that “the options for growth here are considerable.
“In terms of layout,” Seekup says, “you’re currently looking at a selection of sheds, yards and structures on-site, as well as a sizeable residential dwelling that’s occupied as part of one of the leases.
“This two-level dwelling dates from the 1970s, covers approximately 186sq m and includes bedrooms, amenities, office space and a basement.
“A sealed accessway runs through the site, providing easy access to the various tenancy areas,” he adds.
“Location-wise it’s excellent – positioned within a key growth area on the Shore, benefiting from close proximity to the amenities of Albany and enjoying quick access to the Northern Motorway via the Oteha Valley Rd interchange.”
■ At Wiri, a prime opportunity awaits an investor looking to secure a tidy industrial position at 6/1 Hautu Drive, a freehold commercial unit being marketed by Barfoot & Thompson Industrial Sales and Leasing broker Alex McNeil.
It’s available for sale by deadline private treaty closing at 4pm, February 29.
McNeil says the property is part of a threeunit title complex and comprises both warehouse and office, with a total floor area of approximately 489sq m.
“The warehouse, showroom and storage area take up around 436 sq m, while the office, lunchroom and amenities cover the remaining 53sq m.
"It’s well-designed with easy roller-door access, and has a generous stud height of around 5.5m at the front of the building, rising to 6.5m to the rear. There are also five carparks on-site, which is a bonus.”
The unit is currently occupied by NZ Safety Blackwoods Ltd but is significantly under-rented, based on current market rates.
“The lease expires on 30 June so there’s the chance to optimise rental return then. You’re in the middle of Wiri, which is one of Auckland’s fastest-growing industrial areas, and demand for space here is high.
“It's an exceptional location, close to both SH1 and SH20, as well as the inland port, which means you have distribution access in every direction.
“The unit is brilliantly positioned, with high visibility and excellent exposure to the main arterial route of Roscommon Rd, giving added value and the opportunity for signage.
Zoned Business—Heavy Industry, 6/1 Hautu Drive is expected to be popular with both owner-occupiers and investors, McNeil says.
■ In Newmarket, 11 Alma St is a rare, twolevel commercial building, being marketed by Cam Paterson from Barfoot & Thompson Commercial. It is for sale by deadline private treaty closing at 3pm on Wednesday February 21 unless sold prior.
Occupying a 482sq m freehold corner site, the asset comprises a spacious factory warehouse with first-floor offices. It’s estimated the building was constructed in the late
1960s or early 1970s with significant upgrade recently, and now provides a sleek and modern showroom space, staff amenities, and an internal mezzanine office.
Cart dock loading facilities in Clayton St and off-street parking for two vehicles off Alma St offer added convenience.
“The property is currently drawing a rental return of $88,489.68 plus GST and outgoings,” Paterson says. “It is zoned Business —Mixed Use with development potential to
27m, which provides for residential activity as well as smaller-scale commercial activity, which means opportunity abounds here.
“Investment in office space in this particular location is significant, due to a marked increase in demand post-Covid for high-quality locations,” Paterson says.
“Newmarket is known for its great amenities, first-class shopping, and excellent restaurants and cafes. You’re close to Broadway, the CBD and the Domain, and easy access to the main rail and bus routes.
“The Mixed Use zoning, proximity to Auckland Hospital, Auckland University, and in-zone for Auckland Boys Grammar and Epsom Girls Grammar all provide options for the future.”
■ In the CBD, a unique holding comprises the sub-lessor’s interests of the land occupied by the Scene 3 building and Countdown supermarket at Quay Park.
“Rarely does an offering like this come to the market,” says Wayne Muir from Barfoot & Thompson Commercial who is marketing
30 Beach Rd and 76 Quay St with his colleague John Stringer.
It's for sale by tender closing at 2pm, Thursday March 8 unless sold prior.
The property interests include 167 individual ground lease titles.
Each title comprises a ground lease for a fixed term of 150 years expiring 1 August
2146, with rent reviews at 7-yearly intervals. Muir says the offer includes a ground rental ‘margin’ of 2.5 per cent on the Scene 3 units, being the difference between the rental payable to the head lessor at 5 per cent of the freehold land value and that received from the various unit owners for Scene 3 at
7.5 per cent.
“The current net income of around $1,097,250 a year provides a substantial ongoing cash surplus.”
Muir says this makes for an attractive investment position for prospective purchasers.