In Auckland's industrial heart of Onehunga land and a building housing a car sales company and printing group in a dual tenancy, will go under the hammer at the end of this month.
The refurbished commercial building at 100 Princes St is leased to Gem Car Sales and One Print Group, both well-established businesses.
The property has a floor area of 911sq m on a freehold 1067sq m site and generates annual income of $107,500 plus GST.
New leases for the tenancies have been signed. Gem Car Sales has a four-year term, generating $56,000 annually; and One Print Group has a six-year lease, earning $51,500 per annum. Featured in Bayleys' latest Total Property portfolio magazine, the property is now being marketed for sale by auction at 11am on Wednesday June 26, by Michael Nees and James Valintine.
"It's in a sought-after Onehunga location and is a functional workhorse," Nees says.
"Demand for space of this nature underpins the fundamentals of the property, with industrial vacancy rates at all-time lows."
"There is also future rental growth in the contracted tenancies leaving upside in the property," he says.
Tenant Gem Car Sales operates a small car yard from its premises. Its vehicles are imported from Japan, ranging in year from 2006 to 2014. The brand has two other Gem Car Sales yards - in Tauranga and Mt Maunganui - offering the same service. As well as car sales, the company also supplies vehicle finance and insurance packages.
Next door, tenant One Print Group has been in business for more than 26 years with expertise in digital and offset printing - specialising in large signage, real estate billboards; hotel, bar and restaurant stationery like menus, coasters, docket pads, business cards and vinyl menu holders.
"This is a well-presented property in a sought-after Onehunga locality in the middle of Auckland's industrial belt; having a strongly weighted average lease term which makes it a low-risk buying option."
Nees says the Western Ring Route completed two years ago, connecting State Highway 20 with SH16 in the north and with SH1 in the south has dramatically improved access to the area.
"It is for sale at a time when Auckland's industrial market is experiencing a prolonged bull run, with both prime and secondary-grade vacancies at all-time lows, meaning growth in rental rates of between three to five per cent. New property may not be enough to alleviate the low vacancy rates."
Nees says the refurbished building has a seismic rating of 70 per cent of new building standards (NBS).