A high-profile corner site on busy Lincoln Rd, Henderson, offers three years of holding income from an established brand-name tenant while a new owner considers development options.
"More than 45,000 cars passing by daily is a key feature for any buyer and the options of how investors can ultimately use the property are just as attractive," says John Davies of Colliers International who, with colleague Dwayne Warby, is offering the 2000sq m property at 261 Lincoln Rd for sale by auction next Wednesday unless it sells earlier.
"The site is occupied by quality tenant West Auckland Nissan for another three years.
"But there is no right of renewal so the possibilities are many and varied. A buyer could secure this investment for a portfolio leaving the existing tenants, Sime Darby Motor Group, in place for the next three years.
"This would provide a generous holding income while the buyer is planning options for either owner occupiers or continuing with its very solid rental appeal."
Sime Darby Motor Group (NZ) Ltd, part of a Malaysian-based diversified multinational, has an annual turnover of more than $550 million and operates 34 facilities throughout New Zealand.
Davies says the modern buildings, with a net lettable area of 385sq m, were built in 2003 and generate a net annual rental of $153,750.
"The buildings lend themselves to all sorts of future uses. Although purpose built as a car sales facility, the building layout and presentation would accommodate a range of other retail and commercial activities.
"These may include fast food retail, speciality showrooms, trade suppliers and garden centres. The premises incorporate a mezzanine office and amenities area or level accessed by internal stairs."
The high visibility site, zoned Working Environment, has a 30m frontage on to Lincoln Rd and a 60m frontage on to Paramount Drive. It is destined to be zoned Light Industry under the proposed Auckland Unitary Plan.
The attractively-presented showroom, office and amenities are close to a third of the lettable area, and the 180sq m workshop is nearly half the total.
There is sealed space for more than 50 vehicles.
Warby says another appealing feature is that it is on the eastern side of the Lincoln Rd arterial route.
"This is the 'going home' side of the road for traffic volumes returning from Auckland city, underpinning its strategic position for future businesses," he says.
"Mitre 10 Mega, Pak'nSave, a new big Countdown and the Lincoln North retail developments are also nearby.
"Paramount Drive also links Lincoln Rd and Central Park Drive, the two main industrial and commercial streets in Henderson.
"The Henderson commercial centre itself is only 3km away, and Auckland's CBD is a 15-minute drive east via the north western State Highway 16 motorway."
Warby says the new western ring route motorway upgrade will improve travel to the north and the Waterview tunnel, now under construction, will substantially reduce travelling times by bypassing central Auckland and give easier access to Auckland airport at Mangere and the State Highway 1 north-south motorway.
"Being close to very large residential areas, this location has additional business appeal."
What's on offer?
The property: West Auckland commercial site.
Location: 261 Lincoln Rd, Henderson.
Agency: Colliers International.
Sales method: By auction.
Date: Wednesday, November 5.
Features:
Strategic corner location.
High exposure to heavy traffic.
Occupied by Nissan dealership.
Earns net annual rent of $153,750.
No right of lease renewal.