A trade retail industrial property in the low-vacancy Henderson growth node is generating interest among purchasers searching for add-value opportunities.
Two standalone buildings on 2,493sq m (more or less) of freehold land at 159 Central Park Drive occupy a prime road-front position less than 400m from the intersection with major arterial Lincoln Road 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,” he says.
Mr Smith is marketing the Central Park Drive property with Bayleys colleague Beterly Pan for sale by deadline, closing at 4:00 pm on Wednesday, 6th December 2023 (unless sold prior).
The property features two units occupied by four tenants, constructed circa the late 1990s and set back from the road in Business – Light Industry zone, with 34 car parks and convenient vehicle manoeuvrability.
Unit A comprises 371sq m (more or less) of showroom and warehouse accommodation occupied by paint and coatings company Dulux and used vehicle wholesaler Croydons.
Unit B spans 675sq m (more or less) of warehousing and showroom space occupied by automotive paint supplier Autopaint and indoor garden and hydroponics specialists Hyalite New Zealand.
Together, the tenancies generate a total annual net income of circa $234,800 plus GST.
Bayleys salesperson Beterly 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 program to unlock the property’s enormous potential, reflecting its position in an extremely desirable high-growth area.”
Located within the Lincoln North industrial precinct, the area primarily comprises industrial and quasi-commercial businesses serving the growing local catchment and wider Auckland area.
“Lincoln Road is a significant arterial carrying large volumes of daily traffic and provides for a considerable proportion of the immediate community’s commercial activities whilst servicing the needs of a growing residential catchment.
“Local investment like the recent addition of a Ryman Healthcare Village speaks to the confidence in the immediate locale, which provides a variety of amenities, professional services and a Westfield Shopping Centre.
“The subject property is in esteemed company with major national tenants in close proximity and positioned to benefit from the huge growth of the northwestern corridor,” she says.