Ideal opportunity to own and earn

2:48 PM Wednesday October 29, 2014 Colin Taylor

Property for sale at 30 The Concourse, Henderson.

A West Auckland commercial building at 30 The Concourse in a popular industrial area of Henderson is being offered for sale as an excellent split risk investment opportunity.

“Opportunities to buy property on The Concourse are few and far between,” says Meir Alfassi of Harveys Te Atatu Peninsula who is selling the property by expressions of interest closing on November 13.

The Lincoln North property comprises two attached industrial warehouses built in the 1980s with a total building area of about 694 sq m on a freehold irregular triangular shaped lot of 1012 sqm.

“Both units have ground floor and mezzanine levels and have been designed in a V-shape that fits neatly into the triangular shaped site,” Alfassi says.

“The combined annual income of this property is around $82,000 plus outgoings and GST for an 8-8.5 per cent return on investment,” he says.

The essentially level site has a frontage of 48.7 metres to The Concourse which runs roughly adjacent with the north western SH 16 motorway and is strategically situated close to a motorway off ramp.

“The area has high levels of occupancy and demand with the reconfiguration of the Lincoln Rd Interchange to State Highway 16 allowing for higher traffic volumes,” Alfassi says.

Commercial Property - Meir Alfassi, Harveys - cropped.jpg

Meir Alfassi, Harveys Te Atatu Peninsula. 

The part of the site not occupied by the warehouse buildings is sealed providing onsite vehicle parking for 12 cars along with manoeuvring space.

The building is configured to two separate units with Unit One fitted out to accommodate a long term established tenant, a drying cleaning company, which leases a 234 sq m warehouse, 41 sq m mezzanine office and 33 sq m plant room totalling 308 sq m for $32,000 annually plus operating expenses and GST. The 12 year lease started on December 1, 2010 and has a final expiry of November 30, 2022.

“With this lease into four years of a 12 year term that has two yearly rent reviews, this tenancy is a bonus for any investor but especially if the purchaser is an owner occupier in the second unit,” Alfassi says.

The second unit with office, warehouse, mezzanine and amenities space about 386 sq m is occupied by an importer on a short term lease of one year with two rights of renewal and paying $50,000 per annum plus GST plus outgoings.

Alfassi says the dual tenancy makes 30 The Concourse a good split risk investment or represents an ideal opportunity for an owner occupier to occupy the second unit and draw income to offset a mortgage from the adjoining unit leased to the dry cleaning company.   

Construction of the building comprises concrete foundations, concrete ground floor, concrete block walls, roof steel beams fixed to concrete walls/pilasters, timber purlins, foil and profile metal roof. The mezzanine level has particleboard flooring. The exterior cladding is also predominantly concrete block with minor areas of timber weatherboard and flat fibrolite sheet, aluminium joinery, mansard styled metal roof and a vehicle access roller door.

Alfassi says industrial and commercial leasing in West Auckland has improved with many vacant buildings being leased or being sold to owner occupiers. 

“The location lends itself to many types of businesses and there is an option to create a new title and separate the two units to stand alone properties in order to increase value.  

“Central Auckland is only 10-15 minute drive away during off-peak hours and the opening of the Western Ring Route, with the completion of the SH 16 north western motorway upgrade and the Waterview Connection on SH 20, will raise the profile of this area even higher.”  

Alfassi says the surrounding locality is established industrial in nature, with warehousing, manufacturing and yard based interests.

“Lincoln North, Central Park Drive, the new Universal Drive extension and Henderson retail areas are minutes away.”   

Under the Operative District Plan for Auckland City, the land is zoned Working Environment.

What’s on offer?

The property: Two attached Henderson warehouses.

Location: 30 The Concourse, Lincoln North.

Agency: Harveys Te Atatu Peninsula.

Sales method: Expressions of interest closing November 13.

Features:

  •          Split risk investment with two tenancies.
  •          Two attached warehouses with office space.
  •          Combined annual rental income of $82,000.
  •          Return on investment of 8-8.5 per cent.
  •          Close to motorway access.