Prentice says the tenants hold varying lease terms, some with rights of renewal, with one tenant on a monthly lease. "The property's location and excellent street visibility make the units easily rentable," he says.
"For investors, this property holds real merit because it's in a sought-after industrial precinct which attracts industrial and trade retail occupiers due to being close to Auckland CBD and having a neighbouring large residential catchment. As a result vacancy rates are very low here and properties that do become available generally get snapped up quickly."
The main building was originally constructed in 1965 as a traditional saw-tooth roofed manufacturing complex with extensions added in later years.
The total 2656 sq m of floor area has been split into tenancies of varying sizes with all the self contained units having generic, high stud warehouse space with their own offices and amenities. A concreted yard has 70 car parks along with container drop areas.
"The buildings only cover half the site, leaving a large yard shared between the occupiers - with the exception of Kiwi Automotive which has a significant portion for its own use," Hooper says.
Patel says the property is also expected to be of interest to add value buyers who may wish to draw up plans for redeveloping the site in the future while receiving an income from the tenancies.
"The property's current rental levels present a further opportunity to capture added value," says Hooper.
"Recent analysis by a registered valuer shows the property is under-rented with significant potential upside to its income stream that could be realised.
"The location also gives an add-value investor or developer the option of constructing a new modern industrial facility. Given the extremely limited availability of development land in this area, we expect the prospect to add value to be a strong drawcard."
Prentice says the property is zoned Business 5-zoned and has a wide street frontage giving the tenants exposure to about 20,000 vehicles passing every day.
"The site offers a huge profile for the occupiers due its location midway between Great North Rd and the Rosebank Rd motorway interchange."
Patel says another attraction of the property is its closeness to the State Highway 16 northwest motorway.
"With infrastructure improvements to the western ring route set to greatly enhance transport access to the Rosebank industrial area, this location will be viewed as highly strategic for its occupiers."
Hooper says the Rosebank industrial area has become a popular business location due to its roading connections.
"The Waterview Connection now under construction will further enhance transport access to the area, providing occupiers with seamless north-south motorway access to Albany and Manukau which bypasses the Auckland CBD."
Prentice says the Rosebank area is regarded as the closest large industrial precinct to Auckland's CBD - "usually less than a 10 minute drive down the northwestern motorway".
It also has business appeal due to being close to very large residential areas.
"Ease of staffing is always an important consideration and West Auckland offers the benefit of having established and growing residential catchments within a very short commute of significant commercial zones like this one."
What's on offer?
The property: Big multi-tenanted industrial site.
Location: 303 Rosebank Rd, Avondale.
Agency: Colliers International.
Sales method: Deadline private treaty closing October 14.
Features:
• Fully occupied by seven separate tenants.
• Net annual rental income of $239,791.
• Located in a popular industrial precinct.
• High street profile for tenancies.
• Near large residential areas for staffing.
