A versatile workshop property with a national brand tenant on a 10-year lease is for sale as a passive investment with an attractive rental review structure.
Unit B, 177 Wairau Rd is a 520sq m strata freehold property centrally located in the sought-after automotive precinct of Wairau Valley on Auckland's North Shore.
It is tenanted by an automotive sales and service business.
Colliers International is marketing the property for sale by auction at 1pm on Wednesday May 1, unless it is sold earlier. The agency's Euan Stratton says it makes for a highly desirable passive investment.
"As Auckland grows and land uses change, workshops and smaller industrial premises are becoming increasingly hard to secure, with many being converted to different uses or remaining tightly held," he says.
"This Wairau Rd unit presents a rare opportunity to invest in one of the most highly sought-after classes of industrial property, with the bonus of strong tenant covenant backed by a national brand.
"With a 10-year lease from June 2017 and an attractive rental review structure, this is a bankable investment to add to any existing portfolio or a comfortable first step into the industrial market."
Stratton says the property's long lease earns $64,821 in annual rent plus outgoings, with structured rent reviews every four years. Inflation-indexed reviews of CPI plus 4 per cent are every two years, except on market review dates. Two rights of renewal of four years each extend the final lease expiry to May 2035.
Colliers' Matt Prentice says the property is on a high-profile stretch of Wairau Rd that is well known for vehicle sales and servicing businesses.
"The unit for sale is one of four industrial workshops at 177 Wairau Rd, all of which are accessed via a shared driveway," he says.
Broker Sam Sherning says the Light Industry zoned property was built by Jonmar Developments in the early 1980s.
"The property has a favourable warehouse to office ratio, with almost 400sq m of warehouse and storage space to just over 120sq m of office and amenities.
"The main warehouse has 257sq m of clear span space with a high 5m stud, supplemented by an additional 76.2sq m of low stud warehouse space.
"Access is via a centrally located roller door, with four car parks located directly in front of the unit."
Sherning says the office and amenities are split over two floors. The ground floor provides access to the warehouse while the first floor has a lunchroom, two separate toilets and a 66.5sq m storage mezzanine.
The building is constructed of reinforced concrete foundations and floor slabs, with concrete block walls with pilasters, steel roof framing with timber purlins, and a long run iron roof.