An industrial investment property at 8-10 Volkner Place, occupied by a national tenant on a long lease in the popular North Harbour business district on Auckland's North Shore, is being featured for sale by auction in Colliers International's latest National Portfolio magazine.
The property is being marketed by Matt Prentice and Jimmy O'Brien of Colliers' North Shore office and is due to go under the hammer on June 21 at the agency's head office at 151 Queen St, Auckland, unless it is sold beforehand.
The freehold 1730sq m corner offering houses a 955sq m office and warehouse building, occupied by Retail Dimension on a new eight-year lease with two further rights of renewal of two years each. Net annual rental income amounts to $149,500 a year, with built-in rent reviews providing guaranteed income growth.
John Bowring, Colliers International's national auction manager, says the strong tenant covenant, combined with the property's location in a low-vacancy industrial area makes it an attractive investment.
"With a well-established national tenant in occupation on a long-term lease, this building offers a secure income-generating holding in a prime industrial precinct," he says.
Retail Dimension is a merchandising, joinery and signage manufacturer employing more than 70 staff around New Zealand, and occupies other factories in Wellington and Papatoetoe.
The company focuses on designing and manufacturing custom retail fixtures, and has completed projects for many of the best-known brands in New Zealand, including Westpac, Kathmandu, BP, Subaru NZ, New Zealand Post, Briscoe Rebel Group and Z.
Originally constructed in 2001, the property was subsequently extended and upgraded in 2003 and 2004.
"The building now provides a mix of 8m-high stud warehouse, ground floor office and graphics production areas and more offices on the first floor. Further recent refurbishment to the value of $80,000 plus mean the facility is immaculately presented throughout," Prentice says.
Office and production spaces comprise 464sq m, with 408sq m of warehouse, 83sq m of mezzanine areas and 250sq m of fenced yard space to the rear of the property. Multiple roller doors, dual street entrances and 15 on-site car parks ensure convenient access, while the property further benefits from a curved road frontage and extensive street profile. Relatively low site coverage provides the potential for future expansion of the office/warehouse into the rear yard.
"Overall, the building is of an attractive and modern design, as well as providing very functional industrial accommodation owing to features such as the substantial six-metre high main roller door and further roller door access to the yard," says Prentice.
O'Brien says part of the reason for the popularity of the North Harbour business district among industrial occupiers is its closeness to Auckland's central business district and port, via the Northern Motorway.
Volkner Place is 10-15 minutes' drive from the CBD and benefits from being near motorway on and off ramps. Two arterial thoroughfares, Bush Rd and William Pickering Drive, are connected to Volkner Place making it readily accessible. Bush Rd connects the North Harbour business estate with Upper Harbour Highway, giving access to Albany and the motorway interchanges.
A good, local labour supply and supporting industry in the immediate area have also contributed to the high demand among industrial occupiers for premises in this area, O'Brien says. "This is a tightly-held and highly sought-after location which traditionally has had very low vacancy rates."
The North Harbour business district is one of the fastest growing commercial areas in Auckland. The past 10 years have seen significant growth in the area and it will continue to be an important employment hub for the foreseeable future, Prentice says.