Amid high demand from investors seeking Auckland city fringe property, a fully occupied, dual-tenanted commercial investment property is for sale in sought-after Eden Terrace.
Located at 22-26 New North Road, Auckland, the refurbished two-level building is on a high-profile corner site.
It is being marketed for sale by tender closing at 4pm on Thursday July 25 through Nigel Ingham, John Davies and Conrad Traill of Ray White Commercial Auckland.
The freehold Business Town Centre zoned property is occupied by two well-established tenants on long term leases, with annual rental income amounting to $318,540, says Ingham.
"This property's investment attributes make it an ideal holding for individuals, small investment groups and trusts. It's an excellent location in a high-growth area, with a modernised, well-presented building and the security of two separate income streams from reputable tenants."
The 500sq m ground floor is leased to Sopersmac, a New Zealand-owned architectural hardware supplier which was formed via the merging of two longstanding and successful family businesses.
Sopersmac, which has over 70 staff nationwide, operates a showroom at the New North Road property, and also has office and warehouse space on the ground floor.
The first floor tenant is Potter Building Services, a mechanical and electrical services company which was established in 1983. The company, which specialises in commercial and industrial control systems and software solutions, moved in to the property in November 2018 from smaller premises in nearby Grafton.
Conrad Traill, who negotiated the lease to Potter Building Services, says the company has settled in well to the property, which is in an ideal location close to its major customers and also facilitates further business growth.
"Potter has gone from 200 square metres to 500 square metres, which gives them the ability to grow and the space was also flexible enough for the company to configure their premises to suit. The first floor space now features offices along the sunny New North Road frontage, with a separate space for computer technicians and also a workshop."
Both leases have rights of renewal providing potential final expiry dates of 2031 (Sopersmac) and 2027 (Potter Building Services), with regular rental reviews built in.
The convenient city fringe location and ample car parks are beneficial to both tenants, Davies says.
"The property has 18 car parks, split between a semi-basement covered secure car park and further external car parking. To have this number of car parks provided in a central Auckland location right on the edge of the CBD is a big plus for the tenants."
The property is owned by the Jubilee Crippled Children Foundation Trust Board, which has owned the property for the past 14 years, says Davies.
"As an investment, the property has served the trust very well as a consistent source of income, which it has distributed for charitable purposes in line with its purpose. With the trust now divesting the property, this opens up a fantastic opportunity for a new owner to secure a strong-performing investment holding on the Auckland city fringe."
Ingham says the demand for city-fringe property among investors and tenants in Auckland remains very strong.
"There is no shortage of tenant demand for commercial space in good locations near the CBD. A central location cuts transport costs and time for companies which service the CBD, and can also help businesses attract and retain staff as there are plenty of retail and food & beverage amenities nearby."
The site's location just 300m from the upcoming City Rail Link Mt Eden station is also expected to be a strong drawcard for buyers, says Traill.
"This is an area which is set to change fundamentally, with a major piece of transport infrastructure being constructed just a few minutes' walk down the road. Increases to both land values and rents are widely expected as a result of the rail link, which is another reason there is such high demand for property in this area among investors."
The 1191sq m building, which was originally constructed in 1962, has been extensively refurbished and provides well presented, modern interiors.
It sits on a 718sq m site on the corner of New North Road and Flower Street, in a mixed commercial location providing offices, retail and cafés. Many of the neighbouring properties are owned by Mediaworks, which is one of the largest corporate occupiers in the area.