A substantial standalone industrial property on a high-profile corner site in Albany is for sale with a recently renewed lease in place to a multinational tenant.
The 1458sq m building on a 2457sq m Light Industry zoned site at 9 Tawa Dr is among a selection of commercial and industrial properties featured in Bayleys' latest Total Property portfolio which will go up for auction on June 27, unless sold earlier.
It is being marketed by Matt Mimmack and Laurie Burt of Bayleys North Shore Commercial's industrial division.
The property generates net annual rental income of $245,000 from a lease to Xylem Water Solutions NZ Ltd, which has been in occupation since the building was constructed in 1994.
The New York headquartered water technology company, which employs about 17,000 people in 123 countries, has a current four-year lease until April 2022, with one further four-year right of renewal.
"This is the first time the property has been on the market in twenty years and it would be one of the best North Shore investment offerings we have taken to the market in recent times because of the strength of both the location and tenant," says Mimmack.
"In terms of location, there are few better positioned industrial premises on the Shore than this one which benefits from substantial frontage and dual access to both Tawa Dr and Miro Place.
"Tawa Dr is regarded as one the North Shore's premium industrial locations, where properties are tightly held and a number of high quality tenants and owner occupiers are situated. Visible from the motorway, it contains a good mix of building types of all sizes with different office and warehouse combinations and numerous other national and international businesses."
Mimmack says a major factor in the location's popularity is its good connectivity with motorway and arterial roads, with Tawa Drive linking with both the Northern Motorway (SH1) and the Albany Expressway.
Laurie Burt says 9 Tawa Dr has generous yard space aiding truck maneuverability and container drop offs and providing 25 car parking spaces, with good quality landscaping particularly at the front of the site also adding to the property's appeal
The building contains about 950sq m of medium stud warehousing around 6m high with multiple roller door access and a good level of natural light. There is also a 77.5sq m parts store with the balance of the building comprising two storeys of air conditioned offices and amenities located at the main entranceway to the building.
Burt says Xylem Water Solutions NZ Ltd is part of a very large multinational organisation which was recently named the Water Technology Company of the Year at the 2018 Global Water Awards. It in its latest financial year, Xylem generated US$4.7 billion in revenue with reported net income of US$331 million.
"The company provides innovative and smart technology solutions to the world's water, wastewater and energy challenges."
Its products and services move, treat, monitor and return water to the environment in public utility, industrial, residential and commercial building services settings. Xylem also provides a portfolio of smart metering, network technologies and advanced infrastructure analytics solutions for water, electric and gas utilities.
One of its New Zealand projects has involved supplying an ultraviolet disinfection facility for the $450m upgrade of the Mangere water treatment plant.
The property at 9 Tawa Dr is for sale at a time when Auckland industrial vacancy rates are at historically low levels, according to a recently completed survey undertaken by Bayleys Research.
The vacancy rate in the Albany Basin was measured at 2.1 per cent, below the overall 2.8 per cent vacancy rate across the Auckland region's largest industrial precincts.