The AA vehicle testing station has dual road access on to Sunnybrae Rd in the Wairau Valley industrial area.
An investment property occupied by an AA vehicle testing station in Auckland's Wairau Valley industrial area has been placed on the market for sale by auction.
The freehold property at 159 Sunnybrae Rd, North Shore, is being marketed by Matt Prentice and Shoneet Chand of Colliers International and is due to go under the hammer at 11am on July 31 at 151 Queen St, Auckland, unless it sells before the auction date.
"This is an excellent proposition for investors with the property being part-way through a 10-year lease to the AA, also located in the popular Wairau Valley industrial estate," says Prentice.
"This is an ideal holding for private investors and family trusts. The Wairau Valley is a tightly held area and the security offered by a household-name tenant, which had this facility purpose-designed and built in 2007, provides an attractive investment proposition."
Chand says the property offers a solid and growing income stream generating a net income of $151,271 a year with rent reviews and a right of renewal potentially extending the lease until 2022.
"At a time when borrowing costs are at historic lows, the yields available on commercial property compared with other asset classes, mean that commercial properties like this are attractive to investors at the moment."
John Bowring, Colliers International's national auction manager, says an undersupply of quality tenanted industrial investment properties on the market makes the Sunnybrae offering an excellent proposition.
"We expect strong interest in the auction room given the restricted supply of well-located, tenanted industrial properties, combined with high demand from investors taking advantage of the continued low interest rates," Bowring says.
The freehold, rectangular, dual entry 938sq m site provides road-front exposure, large concreted yard areas and double-lane vehicle access down the side of the building to the rear of the site. The 204sq m building contains office and waiting room areas and a large covered canopy for warrant of fitness checks.
Prentice said the building was purpose built for AA but it could be modified to other purposes. "This is a near-new, high-quality development occupying a strategic position in an automotive hub. The property is in an ideal position for service businesses owing to the large surrounding residential catchments, including Birkenhead, Glenfield and Northcote."
Chand says the AA provides the strong tenant covenant of a well-established, nationwide brand.
"The AA has grown from a pioneering automobile club into a large and respected business organisation that offers motoring advice, insurance, finance, maps and travel guides among many other services," he says.
Prentice says the Business 9 zoned site provides dual road access on to Sunnybrae Rd within the popular Wairau Valley commercial and industrial area. "This location provides easy access to State Highway 1 at the Tristram Ave interchange to the east, with the Auckland CBD within easy reach via the Northcote motorway entry."
Chand says there is a lot of re-development under way in the Wairau Valley with bulk and trade retail businesses moving in. Pak'n Save, Bunnings Warehouse and Mitre 10 Mega have opened nearby and this growth has led to substantial associated commercial development in the area, he says.
Industrial property vacancy data from Colliers International research shows industrial vacancy in the Wairau Valley continues to be very low falling to just 1.7 per cent in February 2013 - down from 2.4 per cent in August 2012. This is significantly lower than the overall industrial vacancy rate in greater Auckland, which was 4 per cent in February 2013 and 5.1 per cent in August 2012.
"However, it is not just the favourable position of the site that makes this property an appealing investment. The high growth and low vacancy in the Wairau Valley area means there has never been a better time to get hold of property in the precinct," Chand says.