This Otahuhu property was originally a grain store.
A large, standalone office and warehouse in one of the cheapest industrial areas in Auckland has come to market, presenting an opportunity for owner occupiers or investors to secure an industrial property for below replacement cost, brokers say.
The office and warehouse - with a net lettable area of 3850sq m
- on a freehold 8487sq m site at 198 James Fletcher Drive, Otahuhu is being marketed for sale by Andrew Hooper and Dwayne Warby of Colliers International. Offers close at 4pm, Wednesday May 18, unless sold earlier by negotiation.
"This is an over-spec warehouse facility in a rapidly-changing Auckland location that would appeal to either an owner-occupier looking to buy below replacement cost - the current tenant's lease expires mid-2018 - or an investor seeking to enjoy the current income stream," Hooper says.
"Historically the property was a grain store used to store animal feed - which means it has a favourable warehouse-to-office ratio and plenty of turning room for trucks - rendering it the perfect property for any large storage operator.
"There are currently minimal opportunities on the market for properties such as this, and this is the first time this property has been on the market in 11 years. We're anticipating it to be highly sought after."
The property comprises 3439sq m of warehouse space, 102sq m of office floor amenities and 307sq m of first floor office space.
"The building is also of extremely solid construction, with the warehouse comprising a reinforced concrete floor and walls and fully clear span roof which has a stud rising from five to 10 metres at the sides and is 10 metres in the middle. There is also an operational weighbridge on the property."
The current tenant is a family-owned general transport operation specialising in long distance line haul, STL Linehaul Ltd.
"STL Linehaul is an established company with branches in Auckland, Mt Maunganui, Napier, Palmerston North, Wellington, Christchurch and Dunedin, and fleets of well-presented trucks and trailers.
"STL Linehaul pays $350,000 per annum plus GST and operating costs, with the lease expiry in June 2018, and one right of renewal of two years. They have expressed interest in staying on, should the investor wish them to do so."
The Business 6-zoned property is set to be zoned Heavy Industry under the Proposed Auckland Unitary Plan, Warby says.
"A scarce resource that seldom comes available for purchase due to its flexible land use options, Business 6-zoned land has provision for almost any activity, including heavier industrial uses.
"Demand for Business 6-zoned land such as this is expected to increase more as zoning changes under the Proposed Auckland Unitary Plan continue to push heavy industrial occupiers into concentrated pockets."
The property has road-front profile in an area that is improving dramatically, Warby says. "The site is positioned on a high profile main arterial road almost exactly mid-way between two motorways - the Southern and South Western - making it a highly desirable option for businesses relying on road transport.
"Otahuhu is increasingly popular industrial suburb that is already extremely tightly-held, given its status as one of the most cost-effective industrial locations in Auckland, which features a large surrounding labour pool."
Nearby developments include Goodman's Savill Link, which includes tenants such as Toll, Holden and Super Cheap, and several well-known national and international brands have distribution centres in the area, including Progressive Enterprises, L'Oreal, Fonterra, Konica Minolta and USG.
The Waterview Connection will further improve regional transit from this location, he says. "When the Waterview project opens, there will be two motorway options for connections north, south and west from this property. It's expected that this area will only benefit from the Waterview Connection over time."