New portfolio properties for keen buyers
The building at 436 Broadway is occupied by a car dealership showroom. Photo / Supplied
There seems little end in sight to the pronounced demand for investor and owner-occupier commercial properties, says John Urlich, commercial manager for Barfoot & Thompson in his foreword to the agency’s latest Insite portfolio to be released this week.
“As we go to print, Barfoot & Thompson has over $100 million in CBD buildings under contract,” Urlich says. “Demand for tourism opportunities, office space and redevelopment sites are a feature of the Auckland market at present. Upward pressures on interest rates are secondary to the lack of supply and the record low vacancy rates over prime office and industrial markets.”
A feature property in the new portfolio comprises two individual titles in the heart of Newmarket that are being marketed for sale by agents Cam Paterson and Rex Fowler with tenders closing at 2pm on Wednesday May 17.
“The leasehold sites at 436 Broadway and 89 Nuffield Street have a combined land area of 1809sq m,” Paterson says. “For sale on a 'buy one or both basis' they represent a significant future development opportunity.
“Their individual land areas are 1002sq m and 807sq m; and they earn respectively $320,850 and $101,417.97 per annum plus GST.
“Zoned Metropolitan Centre under the Auckland Unitary Plan they have combined three street frontages that total over 117 metres.”
At 436 Broadway, on the corner with Mahuru St, a two-level 622sq m commercial building is fully occupied by a 270sq m car dealership showroom along with a 429sq m car yard leased to Gullivers NZ Ltd until October 31, 2022. The building also has a separate one-bedroom apartment on the first floor.
The other title at 89 Nuffield St is also occupied by a two-level commercial building but of 1077sq m which has a mix of retail and office space. Currently three tenancies are leased and one is vacant.
Fowler says the Unitary Plan is providing for greater density with Newmarket already seeing new developments like the 85 Nuffield Apartments, the 41-43 Gillies Ave hotel and apartment complex, and the planned extension of the Westfield shopping centre.
Among the industrial properties featured in the new portfolio is a standalone warehouse and office building at 154 Captain Springs Rd, Onehunga, which is being marketed by James Marshall and Nick Wilson and is for sale by auction at 10am on Thursday, May 18, in Barfoot & Thompson’s auction rooms at 34 Shortland St in the Auckland CBD.
“This freehold property of 1793sq m in one title is zoned Light Industrial which is hugely popular with businesses as it provides for a variety of industrial uses,” Marshall says.
The 1321sq m building, with three-phase power and container access, comprises a large warehouse with minimal office space that was constructed about 1973 and which has off-street car parking for nine vehicles.
Wilson says the property is currently leased to Special Wire and Tube Limited on a monthly basis for a rental of $122,000 per annum plus GST and outgoings.
“Under the lease agreement either party can give three months’ termination of lease notice after settlement has occurred,” he says. “There’s a strong leasing market for Light Industrial zoned properties and it’s rare to have the opportunity to purchase an industrial site like this with short-term holding income.”
Unit G5 is within this four-level commercial building at 70 Ponsonby Rd. Photo / Supplied
Marshall and Wilson are marketing another industrial property in nearby Penrose at 922 Great South Rd which is also for sale at the same 10am May 18 auction.
“This Light Industrial zoned property is in one of the best locations in Penrose just 200 metres from the State Highway 1 access ramps, near the intersection of Great South Rd and Church St,” Wilson says. “Comprising a 482sq m concrete-block and iron-roofed warehouse with office space and showroom, it sits on a 1163sq m freehold site and will be sold with vacant possession - which will open up the sale process to investors, developers and owner occupiers.”
Marshall says the property, with three-phase power, multiple roller doors, on-site air compressor and a “container friendly” 450sq m yard area at the rear, offers add-value potential through refurbishment and could be split into two separate tenancies.
“There’s a strong leasing market for Penrose industrial property and our instructions for this property are, that it must be sold.”
Among the land offerings contained within the latest Insite portfolio is a prime 6.7549ha freehold development site at 92 Fred Taylor Drive, Westgate, that Gary Seekup and Bruce Jiao of Takapuna-based Barfoot & Thompson North Shore Commercial are selling by tenders closing at 4:30pm on Wednesday May 24.
Seekup says the property is currently used as farmland but is zoned Terraced Housing and Apartment, and Mixed Housing Urban.
“One option could be to subdivide it into 187 lots,” he says. “It’s just 1.9km away from the fast-growing new metropolis of Westgate and presents a chance to invest in one of Auckland’s more affordable and up-and-coming suburbs.
“The Fred Taylor Drive land is central to the developing Westgate suburb; close to main north and south arterial routes via the north western and south western motorways; near the new North West Shopping Centre, the existing Westgate Shopping Centre, and the large format bulk retail Zone 7 in which major brands have opened stores like Freedom Furniture, Kitchen Things, La-Z-Boy, Nood, Forest Furniture, Lighting Direct, Lighting Plus, Hunter Furniture, The Furniture Store and Rebel Sports.”
Jiao says the property has preliminary surveying completed and forms part of the emerging suburb of Westgate which is in its infancy but growing exponentially. “It’s one of the few places in Auckland where land has been re-zoned for future high density development,” he says.
The standalone warehouse and office building at 154 Captain Springs Rd, Onehunga. Photo / Supplied
Back in Auckland city, agents Murray Tomlinson and Reese Barragar are marketing for sale, in trendy Ponsonby, a well-located ground floor commercial unit in a modern commercial and apartment development. The property will be auctioned in the agency’s Shortland St auction rooms on Thursday May 11 unless sold earlier.
“G5 is a 91sq m stratum-in-freehold unit title on the ground floor, or street level, of a four-level commercial building at 70 Ponsonby Rd,” Tomlinson says. “The building was constructed around 2004 and the overall property comprises two levels of underground car parking, ground level street-front retail space and three upper floors - all strata-titled into separate units. These are all held under a lease agreement by Quest Hotel, the anchor occupier. “Unit G5 with one car park is accessed from an internal courtyard and the incumbent tenant, Rowe Baetens Architecture Limited, has occupied the premises for the last four years.
The tenant has a four-year lease with two four-year rights of renewal from settlement date and is paying $42,640 per annum net plus GST. The lease includes annual rent reviews of 2 per cent reviewed to market on renewal and a ratchet clause also included at renewal.
“Should a purchaser be a prospective owner-occupier and require lease terms varied from those stated, the tenant may choose to negotiate,” Tomlinson says.
Barragar says the unit is on the southern side of Ponsonby Rd, facing northeast across to Western Park, and is 40m from the intersection with Williamson Ave and 300m from Karangahape Rd.
“This investment property is centered in the middle of one of the hottest development precincts in Auckland City during the last four years,” he says.
In the nearby suburb of Grey Lynn, a 257sq m two-level building on a high-profile corner site and in an elevated ridgeline position, is also being marketed Barragar with Cam Paterson for sale by tenders closing at 2pm on May 16.
“This sale with vacant possession, offers superb development opportunities for owner-occupiers, investors and developers,” says Paterson.
The building, at 606-620 Great North Rd, sits on a freehold 1079sq m site held in two titles.
It has a 124sq m retail area and 133sq m of lower ground commercial space and comes with 24 onsite car parks.
“The property has massive exposure to a major city arterial route, a northerly aspect and drive through access,” Barragar says.
“It is within the busy Grey Lynn retail precinct only 2.3kms from the Auckland CBD with good access to public transport networks and motorway interchanges. The land is zoned Business Local Centre under the Auckland Unitary Plan which has a maximum permitted height of 13 metres.”
John Urlich, commercial manager, Barfoot & Thompson.