Massive Onehunga site has big options
This big industrial property is for sale at 298 Neilson Street, Onehunga – identified by red border.
A huge industrial property in Onehunga is on sale for the first time in more than 50 years promising the buyer with an excellent passive investment opportunity or development potential in a well-established industrial area.
“This is a versatile industrial holding with multiple income streams,” says Todd Kuzmich of Colliers International who, with colleague Greg Goldfinch, is marketing the 2 hectare freehold property at 298 Neilson St for sale by deadline private treaty closing on May 27 unless it sells earlier by negotiation.
Kuzmich says the property’s size and location along with scope for easily reconfiguring tenancy footprints and/or extending the leases, presents several add-value options.
“The tenant mix activity accommodates very diverse activities including auto repairs, furniture and home appliances storage, bathroom fitters and packaging suppliers.”
The single title property comprises 24 office/warehouse grouped into four separate blocks that are all accessed via a central driveway and an extra driveway running down one entire side.
The buildings have a combined net lettable area of 12,540 sq m and generate about $1 million in net annual rental income.
“They have been routinely maintained and are in excellent condition – a benefit of being under the ownership and management of the same family more than half a century,” says Kuzmich.
Goldfinch says over and above the property’s appeal as an investment, its sheer size also makes it a serious consideration for developers.
“Development options on this scale are rare especially given it’s situated in the middle of Auckland’s industrial belt. The mainly short term tenancies would allow the property’s rental to serve as an attractive holding income for new buyers while extensive development possibilities are explored.”
He says a similar sized neighbouring site, previously a large scrap metal operation, is planned for redevelopment as a wine bottling, warehousing and distribution centre.
“This only serves to highlight the area’s early stages of transformation, meaning that buyers of this property could benefit by being on board during the initial phases of this process,” says Goldfinch.
Most of the premises are concrete block wall constructions with steel portal frames and roof trusses allowing ample natural light. The units have low or medium stud warehouse spaces as well as office and amenity areas..
The Business 6 zoned property is reserved for a very wide range of industrial activity, and is within reach to key freight routes.
Kuzmich says Neilson Street is a main arterial route making it highly desirable for businesses seeking great exposure and ease of transport
“Direct access to the south western motorway provides easy access to Auckland Airport and Manukau, without the congestion the State Highway One southern motorway can suffer from.”
The property is only a short drive from Onehunga’s Metro Port, as well as SH1 which is the direct motorway route to Auckland’s CBD and ports.
“The Western Ring Route motorway connection, due for completion in 2017, will dramatically improve access to this area by linking State Highway 20 with State Highway 16 via a six-lane motorway, opening up easier links to west and north Auckland.”
The surrounding area includes large manufacturing complexes, high quality industrial and office developments, and some retail on the main arterial routes.
Greg Goldfinch (left) and Todd Kuzmich (right) of Colliers International.
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