Industrial site suited to owner-occupier buyer

295 Ti Rakau Drive is occupied by the Spa and Pool Factory and the Cue Club. Photo / Supplied

The East Tamaki industrial showroom and warehouse building housing the Spa and Pool Factory with the Cue Club above it, is being marketed as an owner occupier or investor opportunity in a mortgagee tender campaign.

Scott Kirk, of Bayleys Auckland, who is marketing the high profile, two-storey freehold property at 295 Ti Rakau Drive in conjunction with John Bolton, of Bayleys Manukau, says the building is on a large 6075sq m freehold site in a popular South Auckland commercial and industrial location.

The ground floor is currently occupied by the owner's Spa and Pool manufacturing business, with a lease in place to the licensed pool hall upstairs.

The ground floor has 675sq m of open plan showroom space. At the rear is a 2223sq m, high-stud warehouse with five roller doors providing access on both sides of the building. The warehouse has its own amenities and a small office and lunchroom area.

The upper floor was originally used as office space but this has now been converted into a pool hall and bar.

It has its own entrance way via a central stairwell and lift. Cue Club has a new three-year lease over this 666sq m of space with a final expiry date of 2018 if all rights of renewal are exercised.

Tenders for the property, which is featured in Bayleys' latest Total Property portfolio, close on September 24.

The building is being sold with a net annual rental income of $122,000 coming from this lease.

Kirk says a recent valuation indicates the potential rental for the downstairs portion of the 3360sq m building is about $311,000.

He believes an owner occupier might be the next buyer because despite the tougher economic times, some companies are looking to get out of rented premises into their own while interest rates remain at low levels.

"As a result there is quite an active owner occupier market operating at present, particularly for well located, high profile premises such as these," Kirk says.

The property would suit a variety of business looking for a combination of high profile office or showroom and accompanying warehousing facilities.

"It appears the building could also be reconfigured to partly accommodate an owner occupier with additional space available for tenants in this sought-after location," he says.

While the Ti Rakau property would suit an owner occupier, Kirk believes it could also appeal to an investor who wanted to add some value to it by redeveloping the ground floor into high quality retail showroom space or by subdividing it into smaller tenancies.

"There is a substantial concrete yard in front and on both sides of the building providing ample on-site parking or yard storage. This area not only provides functionality, but has huge exposure to a large amount of passing traffic as well," he says.