"With solid fundamentals and strong tenant covenant, this is an astute acquisition for both passive and add-value investors."
Thomson notes the property's good exposure to Smales Rd - one of the main arterial routes linking Auckland's southern and eastern suburbs.
"The location is also close to State Highway 1 via both the East Tamaki and Manukau motorway interchanges," he says.
"With easy access to nearby industrial areas such as Highbrook, Manukau and Mount Wellington, this is a desirable location."
Higgins says the property comprises two buildings with a net lettable are of 2316sq m, both providing excellent industrial accommodation.
"The original building has 380sq m of tidy showroom and office space at the front of the property, with 800sq m of warehouse space to the rear," he says.
"The newer building, at the rear of the property, comprises 858sq m of warehouse space with excellent natural light. An extra 278sq m of office, accessed via the warehouse, is at the back."
Thomson adds that both warehouses have stud heights of about 6.5m to 8m and have good access via multiple roller doors.
"The buildings were constructed in 1984 and 1996 respectively, and meet modern seismic standards, with the property having an A-grade IEP [initial evaluation procedure] rating of 80 per cent."
The Bathroom Direct lease commences upon settlement, with the five-year lease term followed by two five-year rights of renewal.
"The tenant is a long-standing bathroom supplier specialising in full-service design, creation and renovation," says Higgins.
Higgins says the property's Heavy Industry zoning under the Auckland Unitary Plan is Auckland's heaviest industrial zoning.
"Development of up to 20m is permitted, while greater levels of odour, dust and noise emissions are allowed than in lighter industrial zones."
