A standalone West Auckland warehouse, occupied by an established industrial tenant, is for sale, with a lease providing locked-in rental growth.
The tenant, Glass Market Limited, occupies the property at 147 McLeod Rd, Te Atatu, on a six-year lease, earning $193,750 in net annual contract rent and having a three-year right of renewal. The lease provides for 2.5 per cent fixed annual increases plus a market rent review on renewal.
The 1587sq m building on a 3290sq m freehold site, comprises a double-bay warehouse with a 6m to 8m stud height, and a small portion of offices and amenities.
The sale represents an ideal opportunity to invest in Auckland's keenly sought-after industrial sector, says Matt Prentice of Colliers International who, with colleague Josh Coburn, is marketing it for sale by deadline private treaty closing at 4pm on Tuesday May 14, unless it sells earlier.
Coburn says the property comprises a standalone building set back from the road frontage on a regular-shaped, level industrial site.
"The warehouse has 1520sq m of space across two bays - each with a 6m stud rising to 8m at the apex. Individual roller doors to each warehouse bay allow the building to be split into separate tenancies if required in future.
"A small office and amenities area of 67sq m is constructed within the warehouse envelope over two levels."
The front of the site includes an 860sq m yard with asphalt or concrete seal for circulation, parking and yard storage. An additional rear yard of 400sq m allows for additional storage capacity.
The site is on the southern side of McLeod Road, with residential property to the west and similar industrial activity to the east and south.
The property is zoned Light Industry under the Auckland Unitary Plan, which allows for uses including manufacturing, production, logistics, storage, transport and distribution activities.
"This is a solid industrial offering, with guaranteed rent growth, an excellent tenant covenant and an attractive warehouse-to-office ratio," Prentice says
He says the 'secure tenant' is a New Zealand owned and operated glass wholesaler that specialises in producing fully-certified safety glazing materials for all types of applications.
"The property has excellent road frontage exposure, an extensive front yard and separate rear yard. It is well located in a small pocket of industry on the eastern side of McLeod Road, within the predominantly residential suburb of Te Atatu in West Auckland.
"The excellent motorway access and a scarcity of nearby industrial properties have made this precinct tightly-held among owner-occupiers and long-term investors," Prentice says.
It is 2.7km from the Te Atatu State Highway 16 Northwestern motorway interchange and another 10km from Auckland's CBD, giving quick access to markets.
The property is well served by road networks, with public transport accessible along Te Atatu Rd. McLeod Rd is a main road connected to various arterial roads. It links the Southern part of the suburb to Henderson.
Prentice says the wider Te Atatu area has grown in popularity in recent years, with improved infrastructure and amenities pushing up prices, making this property a good long-term investment prospect.