A unique industrial property concept which sold out after just one week on the market during Covid-19 alert level 2 is being seen as highly encouraging for the commercial property market.
And for those who missed out – another is on the way.
In fact, the first two days saw 60 per cent of the 38 architecturally-designed units at the Foundry under contract – an overwhelming success for an innovative industrial development which attracted investors and owner/occupiers alike from various backgrounds, predominantly from the Auckland area.
The Foundry has been praised for the introduction of a new asset class for investors to access the commercial property market and respective yields without the hefty price tag that typically comes with commercial, particularly industrial, property.
Leases make up a substantial percentage of any business' annual expenditure and, in places like Auckland, these costs can be crippling. However, Foundry's new concept gave small business owners, start-ups and artisan producers the opportunity to own the workspace they occupy for a remarkably low price, starting at just $295,000.
Located in Hobsonville, the units will be well-designed, functional, and just a stone's through from the CBD.
Farhad Moinfar is the director of Citadel Capital, the company behind The Foundry development, and says they noted many interested parties discovered the easy access to Hobsonville from the CBD. Some joked it took longer to get from their current location to the Western off-ramp than it did to get from that point out to Hobsonville, a mere 15-minute drive for most.
Moinfar knows what they mean. It takes him longer to get from his Ponsonby office to the Western on-ramp than it does to travel from the on-ramp to The Foundry.
"With just a 16-minute commute, why not benefit from the same amenities of the city centre with quick access – but for a fraction of the price in a high growth area," says Moinfar. "It is a no-brainer."
The pace at which The Foundry's units sold is a testament to the attractiveness of the Hobsonville area and highlights the impact of the government's investment in West Auckland infrastructure over recent years, he says.
"It's in line with the general trend seen overseas of a shift from a CBD-centric approach to a suburban hub development. Cities like Toronto, Paris and even London have witnessed a growing demand for out-of-city-centre locations as companies realise the benefits of relocating to the suburbs, closer to where people live."
Moinfar says this is only the beginning. With the combination of continued public investment in infrastructure projects and the acceleration of remote working post Covid-19, Citadel Capital is announcing The launch of an exciting new project only a few blocks away.
This next development - The Forge - comprising 31 freehold, industrial workspaces off Hobsonville Road.
The Forge will be made available to prospective purchasers in two weeks' time and is already seeing strong interest even before being officially on the market.