"The freehold property at 104-140 Neilson St is signed to a 15-year lease, with two six-year rights of renewal extending the final expiry date to 2038.
"The lease earns $757,209 in net annual rent, with locked-in rental growth from a mix of fixed annual and market rent reviews. A market rent review is due in 2019."
Jarvie says the site's overall built coverage of about 10 per cent gives investors, developers and land bankers options long-term.
"Large industrial sites like this are becoming rarer as Onehunga continues its a mixed-use transformation," Jarvie says.
"Located on the fringe of the suburb's residential and commercial precincts, just a stone's throw from the train station and numerous bus services, this property has plenty of future potential."
Auckland Transport Corporation Ltd (NZ Bus), a wholly owned subsidiary of New Zealand and Australian Stock Exchange-listed company Infratil, uses the site as its Onehunga bus depot.
The property comprises a substantial 16,385sq m yard with 2042.6sq m of floor space within two industrial buildings and two purpose-built structures. The main building has an 886.53sq m workshop and 727.92sq m of office space over two levels.
The recently refurbished offices have a mix of open plan and partitioned space along with a large staff cafeteria and amenities.
The workshop has a stud height of about 6m and two pits. Constructed of reinforced concrete and steel cladding, it has drive-through via roller doors on both sides. A 382sq m medium stud warehouse of the same construction is behind the main building.
The two purpose-built structures include a bus wash facility and a refuelling station, with a small office.
The yard has a specialised heavy-duty polymer asphalt surface that was installed specifically to cater for heavy vehicle movements on the site.
Greg Goldfinch, industrial national director at Colliers, says the location has excellent connectivity to the motorway network and the rest of Auckland's southeast industrial suburbs.
"The property has 160m of frontage to the northern side of Neilson St — one of New Zealand's busiest roads, with up to 30,000 vehicle movements a day," he says.
"The street forms part of the main arterial route connecting the established industrial suburbs of Onehunga with Penrose and Mount Wellington."
Goldfinch says Onehunga's popularity is due to its ease of access to State Highway 1 and 20, its relatively short distance from the CBD, and good access to Auckland International Airport via SH20.
NZ Bus is the largest operator of urban bus services in New Zealand, with a fleet of more than 1000 and 1900 employees.
