Industrial investment in Glen Eden
The interior of the clear-span warehouse at 7 Waikaukau Rd. Photo / Supplied
JLL is marketing a large industrial property with two tenanted 1970s’ buildings at Glen Eden.
The freehold property at 7 Waikaukau Rd is for sale through expressions of interest closing March 2 and is likely to attract investors and owner-occupiers, say JLL brokers Alex Wefers and Jason Armstrong.
“The single-title property, in a light industrial area, has a 3900sq m site with a total lettable area of 1992sq m,” says Wefers. It is made up of a clear-span warehouse and a smaller building at the front, with carparking.
“Together they are bringing in $90,200 net per annum. The smaller building has a five-year lease in place with one right-of-renewal, however the lease on the rear building has expired and the tenant is on an informal month-to-month lease arrangement. The warehouse is under-rented so there is upside for the new owner to increase the return on this investment,” Wefers says.
“We see huge potential and flexibility in this investment, which has been owned by the same family for more than 20 years,” Armstrong says.
“Studio Ceramics has occupied the 1728sq m warehouse for around 20 years and the business is well known to the West Auckland community for its artistic ceramics inspired by New Zealand flora and fauna, which are manufactured on site. Studio Ceramics’ lease has expired and needs to be renegotiated.
“There would be scope to turn the warehouse building into multiple tenancies in the future. It has multiple roller doors, is in good condition and has had a new roof put on it.
“The 264sq m building at the front of the site is leased to a local community group as a Learning Centre until 2020, with one right of renewal of five years. There is guaranteed income of $26,400 a year, with the next rent review coming up in June 2017.”
Glen Eden is around 16km by road from the CBD or a 30-minute drive. Waikaukau Rd is on the northern side of West Coast Rd. The property is 1.7km from Glen Eden station, a 40-minute journey from Britomart.
“When the Waterview Connection opens this year, the industrial areas of West Auckland will suddenly be much more accessible,” Armstrong says. “We expect it to have a strong influence on the industrial property market too.”
“This property offers a great opportunity for an investor with vision to immediately add value and increase their return on investment in this low interest rate environment,” Wefers says.