328 Neilson St, Penrose comprises three tenancies.
A freehold Penrose industrial building with three long-standing tenants and significant add-value potential is up for auction in two weeks' time.
"The property is in a strong location and its rental upside will appeal to investors and owner occupiers looking for a versatile industrial holding that ticks most of the boxes," says Brennan Wyllie, commercial and industrial agent with Barfoot & Thompson Commercial.
Wyllie and his colleague, James Marshall, are marketing the complex at 328 Neilson St for sale by public auction at 10.30am on February 18 at the agency's 34 Shortland St auction room - unless it sells earlier by negotiation.
"The building's division into separate tenancies, each with warehouse and office accommodation, provides investors with the comfort of a multi-tenanted investment property that has several income streams," Wyllie says. "This is a very rare opportunity to acquire a high profile property in one of Auckland's most popular industrial areas and close to key traffic corridors."
The 1960s building is a medium stud warehouse and office development with a floor area of 708sq m on a freehold 1131sq m single-titled site zoned Business 6.
The three ground level industrial units are self-contained with each having its own amenities. The size and floor area of each tenancy varies with Unit A, occupied by High Speed Diesel, paying annual rent of $19,740; Unit B, leased to Te Papapa Print, paying $17,716 per annum; and Unit C, rented to Lauweis Autos, paying $20,000 a year.
The road frontage property is located along the northern side of Neilson St and forms part of the established commercial and industrial area of Penrose.
The site is triangular in shape with a depth of about 25.29m on the northern side and a road width frontage to Neilson St of about 40.6m.
"The property's wide road frontage gives the building an excellent site profile to high volumes of passing traffic and consequently the tenants benefit from good signage exposure," Wyllie says.
The property has three access points off Neilson St and the site also has on-site carparking.
The general construction is of concrete foundations and flooring with concrete block external walls, long run iron roofing and glazed front offices.
Marshall says the purpose of the Business 6 zone is to provide for heavy, noxious or "otherwise unpleasant" industrial activity.
"For some manufacturing or service related firms, the Business 6 zone represents one of the few areas where their industries can be located with adequate water and trade waste capacity and with limited disruptions to the surrounding community," says Marshall.
He says the council's Proposed Auckland Plan intends to retain provision for noxious industry in some of the current locations although the overall area assigned to such industry is less than that in former District Plan schemes.
For employees, the commercial area of Onehunga offers the nearest shopping and supporting business centre "although there are a number of shops and service centres throughout the Penrose [and] Onehunga industrial areas".
The area around the property is characterised by a range of small to large traditional styled factories and warehouse buildings that also generally date from the 1960s. Marshall says Penrose comprises Auckland's major industrial hub while being less than 12km from the CBD.
"The suburb is well located in relation to the main roading networks with nearby connections to the State Highway 1 motorway close at hand.
"This property sits directly opposite the Gateside Industry Park and is about halfway between Neilson St's intersections with the main arterials of Church St and Captain Springs Rd. Neilson St itself is a key traffic corridor linking SH1 to SH20 on the western periphery of the Onehunga commercial area."
Marshall says the location is benefiting from significant infrastructure projects currently under way across Auckland.
"Specifically, the Waterview tunnel motorway connection, now under construction, will dramatically improve access to this location from Auckland's western suburbs."
What's on offer?
The property: Industrial warehouse/office building.
Location: 328 Neilson St, Penrose,
Agency: Barfoot & Thompson Commercial.
Sales method: Auction at 10.30am, February 18.
Where: 34 Shortland St, Auckland CBD.
Features:
• Divided into three self-contained units.
• Three long established tenants.
• Split risk spread with multiple tenancies.
• Prominent street frontage with high visibility.
• Business 6 zoning for heavy or noxious industries.