Investor confidence remains high at the beginning of a new year for commercial property, says Peter Churchill, commercial operations manager, for Barfoot & Thompson Commercial.
Commenting on the recent launch of the agency's first Insite commercial property portfolio for 2019, Churchill says, "indications are that investors are seeking office, retail and industrial properties with reliable yields".
A prime property on offer is a Mt Wellington industrial complex at 190 Marua Rd that's for sale through industrial sales manager Mike Jensen and encompasses a workshop/warehouse, two-level office building with four front tenancies and a large secure yard to the rear. Jensen is selling the property by deadline private treaty closing at 2pm on February 28 unless it sells earlier.
The regular-shaped and level site is held in one freehold 971sq m title and will be sold with vacant possession with the exception of the four front fully-leased tenancies totalling 169sq m including common area. Office Unit 1 of 43sq m and Unit 2 of 20sq m are on the ground floor; while Unit 3 of 28sq m and Unit 4 of 43sq m with their own kitchen sinks are on the first floor.
The units, with individual power meters, have direct pedestrian access off Marua Rd and share male and female toilets in the ground floor common area.
Total annual gross rent from the four tenancies is $26,909.
Jensen says the property has a total building area of around 494sq m with a seismic rating of 70 per cent of New Building Standard (NBS). It also has excellent off-street parking for 16 vehicles and a very secure and private yard of about 350sq m.
"The rear concreted yard to the rear with parking for 10 cars is unusual in this location and, importantly, provides the potential for further development of the site."
He says the other six stacked car parks, designated for office use, are at the front of the property.
The warehouse is located immediately to the rear of the office units and provides internal access to the units.
Access to the now vacant warehouse is via two separate roller doors one to the Eastern side and the second to the rear accessed off the yard. The warehouse has two stud heights ranging from 4.4m to 5.8m, a small office/reception area to the rear and an amenities block to the front with a separate toilet, shower and lunch room immediately above.
Overall construction of the building is of concrete foundations, concrete structure floors, concrete block and corrugated iron walls, iron roofing and aluminium joinery.
Jensen says the property is zoned Business Light Industry under the proposed Auckland Unitary Plan which has the objective of giving light industrial companies the ability to function productively within the zone.
Closer to the Auckland CBD, in the city fringe suburb of Grey Lynn, a 278sq m versatile mixed-use site housing a two-level 412sq m building, plus basement car parking and storage, is for sale by negotiation through brokers Murray Tomlinson and Reese Barragar.
"The building at 19 Williamson Ave was refurbished in 2014 and 2015 and is in a sought-after location on the border with Ponsonby and a five-minute drive from the city centre," says Tomlinson.
"It's a on the northern side of Williamson Ave, between its intersections with Mackelvie
and Scanlan Sts to the East and West respectively."
The ground floor comprises three fully-leased tenancies: a retail outlet renting two areas of 58.78sq and 69.27sq m – both with some common area included – which has good road frontage and floor-to-ceiling windows; and a 69.58sq m rear studio with some common area.
The basement level has three car parks, eight storage lockers and workroom/storage area of 42.65 sq m, which is owner-occupied. This can be accessed internally, or through a shared entrance on Williamson Ave, or via a ramp to the Western side of the building.
"The basement could take more car parks with the removal of the storage lockers," Tomlinson says.
A top floor houses a 130sq m boutique, two-bedroom penthouse apartment with a 45sq m North-facing deck. It is also owner-occupied and accessed internally through a shared entrance.
Tomlinson says the freehold property, with a total floor area of about 412.28 sq m, excluding storage and common areas, earns total annual rent of $120,600 plus GST
"In summary, this is a character building which will appeal to a wide and diverse range of purchasers including owner-occupiers, investors and land bankers," he says.
"Furthermore, having a Business - Mixed Use zoning which permits an 18m height limit with an occupiable height of 16m, may appeal to future developers."
Barragar says the seismic rating of the building was increased to 100 per cent of NBS when the apartment was added.
He says the surrounding area is dominated by a mix of original villas and bungalows erected during the 1880-1920 period, together with small pockets of commercial and industrial development.
"Over recent times there has been a trend toward the removal or demolition of housing stock on Business zoned sites followed by the redevelopment of the land with mixed retail, office, and residential buildings.
"A feature of the area is the 1.3ha residential-commercial complex known as Vinegar Lane, which has been developed on a site bounded by Williamson Ave, Pollen St and Crummer Rd, as a high-density freehold subdivision anchored by a Countdown supermarket."
Barragar is marketing another property, with a street frontage retail component over in Remuera Rd, close to its corner with Broadway in Newmarket.
"It's a well-located and modern retail store close to the Newmarket railway station and across from Nuffield St," he says. "It benefits from exposure to high volumes of pedestrians being near the Broadway corner and close to Scentre Group's $790 million Westfield Newmarket development."
Designated Shop K3 with Accessory Units 194B and 195B at 20 Remuera Rd, the 59sq m freehold unit is for sale by deadline private treaty closing at 2pm on February 21 – unless sold earlier.
"The property, zoned Business - Metropolitan Centre Zone, is predominantly open-plan with a separate kitchenette, storage area and two changing rooms," Barragar says.
"It's fully leased to a single tenant, Galaxy Fashion Limited trading as AUZealand, which sells contemporary and vintage fashions; men's and women's casual, quality, comfortable and stylish active-wear."
Barragar says the lease earns $47,456.37 net plus GST per annum averaged over a two-year term; and has two rights of renewal of two years each with a final lease expiry date of November 30, 2024.
"The unit features a contemporary finish with tiled and wooden floors and high ceilings. The two secure covered car parks [Accessory Units 194B and 195B] are in the basement car park which
has lift access to the ground floor.
"Auckland's regional retail vacancy rate is currently at a low of 3.1 per cent, with Newmarket at 2.5 per cent. The level of demand for retail space in Auckland CBD, the suburbs and shopping centres symbolises a healthy retail market.
"Prime locations with high exposure of foot traffic will continue to be highly sought after by
domestic and international retailers," says Barragar.