"About 5800sq m of the road frontage part of the site has been occupied by Central Landscaping Supplies Silverdale Limited since May 2013. A new lease beginning on May 1 2018— for a term of 15 years — has been established to provide the tenant with security of tenure. Three smaller tenants on short term leases are located in the rear yard with room for more, and the property is now earning a total of $235,000 from all four tenants," says Masefield.
He adds that Central Landscaping's premises comprises 142sq m of office space, which was refurbished in 2013, and this provides a high standard of amenity value. Directly under the office area is a 385sq m warehouse with four roller doors, allowing drive through capacity for trucks and trailers.
There is another 137sq m four-bay shed on the site, used for storage and the yard area of about 5000sq m has been concreted.
"The building is set well back on the property, allowing for off-street car parking for customers. The strong tenant covenant and long lease term to Central Landscaping Supplies Silverdale will certainly appeal to investors while the balance of the land of about 9232sq m can be further developed."
Claire says this rear yard would make a great development site being relatively flat in contour.
"Barfoots' recent industrial vacancy survey for Silverdale indicated zero vacancy, so its no surprise that we're fielding constant inquiries from both investors and tenants for industrial buildings," says Claire.
"In this case, entrepreneurial developers can capitalise on the unsatisfied demand from tenants and investors in the area."
Claire says the considerable cash flow being generated from the property would help ease the financial burden for a developer, as they go through the consenting/building process.
"Alternatively, an owner-occupier could subdivide and sell the Central Landscaping supplies area and develop the 9232sq m of remaining land for their own use," says Claire.
Masefield thinks the property will also be of interest to land bankers, who could simply continue leasing up the rear yard and sit on the cash flow generated from the land.
"We are now getting between $20-$30 psm for yard space and have a shortage of available options for potential tenants," he says.
Masefield says Silverdale and the surrounding Hibiscus Coast area has undergone significant development activity over the past few years.
"Statistics NZ tells us say the Hibiscus Coast area, including Silverdale, grew by 9.7 per cent from 81,858 to 89,832 residents between the two consensus," says Masefield.
"The Silverdale Millwater subdivision of about 3500 homes is nearing completion and the new Milldale Subdivision, on the Western side of the motorway, creating another 3500 homes, is now under construction."
Foundry Rd is about a four-minutes' drive to the State Highway 1 motorway North and South on-ramps and is a 25-minute-commute to Auckland CBD under normal traffic conditions. Adjoining neighbours include medium to large manufacturing and distribution businesses including Highway Stabilisers, Herman Pacific and Go Bus.
