A newly constructed property on a freehold title leased by a long-term government tenant has come up for sale at 25 Bairds Rd, Otara.
Marketed by Tim Boyle, David Arlidge and Claus Brewer of CBRE, on behalf of a family trust, the property is for sale by deadline private treaty closing date at 4pm on Thursday, September 12.
Boyle says the office building and associated property offers a rare opportunity to acquire a blue chip investment in the tightly held Auckland market at a time when there is a considerable lack of quality investment stock available.
"It is a golden ticket investment with passive cash flow for at least 10 years and the vendor is only selling to pursue other opportunities," Boyle says.
The freehold site is made up of a flat 4507sq m section set slightly off Bairds Rd with little road noise and good street exposure.
Arlidge says that the 1065sq m office building was purpose built for the Corrections Department in 2012.
"It is only 1 year old with high quality fit out and exteriors as well as a workshop and storage facilities on site," Arlidge says.
"As a new building, the need for capital and maintenance expenditure is significantly reduced. There is also little risk of any potential earthquake code deficiencies which is an increasingly important consideration for commercial properties."
Arlidge says there is considerable potential for expansion on the site which is fully fenced with 65 on site carparks.
It is zoned Business 5 under the Manukau Operative District Plan 2002.
Boyle says the Corrections Department is the sole tenant on a 12-year lease commencing 2012.
"The department has a long-term commitment to the site and there are solid rent review provisions for the site linked to the Consumer Price Index so there is room for improved rental performance in the future.
"The department worked alongside an experienced construction company to create a high spec building that will be relevant to its needs well into the future.
"It has been fitted out with the new specs that Corrections is rolling out at its facilities around the country so they won't be moving to another site anytime soon."
Brewer says the property is in an area that has been earmarked for future growth, has strategic connections and access to the greater Auckland region.
"It is on the southern side of Bairds Rd - just a minute's drive to Highbrook Drive and the northern and southern motorway exchanges."
Brewer says there are several projects under way on Bairds Rd supplementing established mature properties and reinforcing the value of the site in terms of development potential and growth.
"This is a location that will only improve over the course of the lease."
Arlidge says he is expecting significant interest in the property and there is also potential for first right of refusal on a neighbouring site.
Brewer says that CBRE is receiving interest from a range of investors including high net worth individuals, syndicates and institutional investors.