A mixed-use Onehunga property with a high-stud warehouse, substantial yard and standalone office is for sale by auction, presenting a chance to acquire a freehold investment property with future development upside in one of Auckland's fastest-changing suburbs.
The recently refurbished property at 19-23 Hill St is fully tenanted, with two new leases offering investors a split-risk annual income of $296,000 plus GST in net annual rent. Low site coverage, holding income and generous Business Mixed Use zoning provide scope for developers to unlock the future potential of the site.
The property is being marketed by Hamish West, Ben Herlihy, Gawan Bakshi and Ned Gow of Colliers International.
It will go to auction at 11am on March 6, unless it sells earlier.
West says the property provides multiple options for both investors and developers.
"A new owner can either make the most of strong tenant demand for quality industrial space in this tightly held area, or reposition and transform the property in line with Onehunga's urban renewal."
The site comprises a 4312sq m landholding spanning two freehold titles. Improvements include two standalone buildings on separate tenancies with a combined net lettable area of 1006sq m.
Both buildings underwent full refurbishment and asbestos removal in 2018.
The larger building, on the southern boundary, is a 750sq m warehouse with a 167sq m office at the front of the building. Access to the high stud warehouse is via a single roller door fronting Hill St.
The smaller building, on the northern boundary, comprises an 89sq m house converted for office use. The 3135sq m yard is accessed via two driveways down either side of the warehouse, giving drive around yard access. A third driveway provides parking for the office conversion.
Used vehicle company 0800 Best Deals Limited occupies the warehouse, associated office, and yard, which it uses for vehicle storage.
The tenant is signed to a three-year lease earning $260,000 plus GST in net annual rent. A three-year right of renewal extends the final lease expiry to July 2024.
The lease contains fixed annual rent increases of 2.5 per cent, plus a market rent review on renewal.
The standalone office is tenanted on a commercial lease to A&R Partner Services Limited.
The company is signed to a two-year lease earning $36,000 plus GST in net annual rent, with fixed annual rent increases of 2.5 per cent.
A two-year right of renewal extends the final lease expiry to October 2022.