Penrose industrial goes on the block
Elevated view of the industrial property at 328 Neilson St, Penrose.
A freehold Penrose industrial building with three long standing tenants and with significant add value potential is up for auction in two weeks’ time.
“The property is in a strong location and its rental upside will appeal to a wide range of investors and owner occupiers looking for a versatile industrial holding that ticks most of the boxes,” says Brennan Wyllie, commercial and industrial agent with Barfoot & Thompson Commercial.
Wyllie and his colleague James Marshall are marketing the complex at 328 Neilson St for sale by public auction at 10.30 am on Wednesday, February 18 at the agency’s 34 Shortland Street auction room – unless it sells earlier by negotiation.
“The building’s division into separate tenancies, each with warehouse and office accommodation, provides investors with the comfort of a multi-tenanted investment property that has several income streams,” Wyllie says.
“This is a very rare opportunity to acquire a high profile property in one of Auckland’s most popular industrial areas and close to key traffic corridors.”
Constructed in the 1960s, the building for auction is a medium stud warehouse and office development with a total floor area of 708 sq m on a freehold 1131 sq m single titled site zoned Business 6.
The three individual ground level industrial units are self-contained with each having its own amenities. The size and floor area of each tenancy varies with Unit A occupied by High Speed Diesel paying annual rent of $19,740; Unit B leased to Te Papapa Print for $17,716 per annum; and Unit C rented to Lauweis Autos paying $20,000 annually.
The road frontage property is located along the northern side of Neilson Street, and forms part of the established commercial and industrial area of Penrose.
The site is essentially triangular in shape with a depth of approximately 25.29 metres on the northern side and a road width frontage to Neilson St of about 40.6 metres.
“The property’s wide road frontage give the building an excellent site profile to high volumes of passing traffic and consequently, the tenants benefit from good signage exposure,” Wyllie says.
The property has three access points off Neilson Street and the site also has on site car parking.
Industrial property at 328 Neilson St, Penrose viewed at street level.
The general construction of the warehouse and office building is of concrete foundations and flooring with concrete block external walls, long run iron roofing and glazed front offices.
Marshall says the purpose of the current Business 6 zone is to provide for heavy, noxious or “otherwise unpleasant” industrial activity within the city.
“Such activity typically generates significant effects which may pose a serious threat to the natural environment and compromise the amenity and safety enjoyed by surrounding land users. For these reasons it is important that heavy and noxious industries are located in areas where the impacts of these effects can be minimised and isolated,” Marshall says.
“For some manufacturing or service related firms, the Business 6 zone represents one of the few areas where their industries can be located with adequate water and trade waste capacity and with limited disruptions to the surrounding community.”
He says that the council’s Proposed Auckland Plan intends to retain provision for noxious industry in some of the current locations although the overall area assigned to such industry is less than that in former District Plan schemes.
“The zone overall will have a low standard of amenity and it is not expected that this standard will be raised in the near future.
“On the other hand this does not imply that these heavy industrial industries can continue to generate the same effects indefinitely.”
For employees the commercial area of Onehunga offers the nearest shopping and supporting business centre “although there are a number of shops and service centres throughout the Penrose Onehunga industrial areas”.
The area around the property for sale is characterised by a mixed range of small to large traditional styled factories and warehouse building that also generally dating from the 1960s.
Marshall says Penrose comprises Auckland’s major industrial hub of Auckland while being less than 12 kms from the CBD. “The suburb is well located in relation to the main roading networks with nearby connections to the State Highway One motorway close at hand.
“This property sits directly opposite the Gateside Industry Park and is about half way between Neilson Street’s intersections with the main arterials of Church Street and Captain Springs Road. Neilson Street itself is a key traffic corridor linking State Highway 1 to State Highway 20 on the western periphery of the Onehunga commercial area.”
Marshall says the location is benefiting from significant infrastructure projects currently underway across Auckland.
“Specifically the Waterview tunnel motorway connection now under construction will dramatically improve access to this location from Auckland’s western suburbs.”
What’s on offer?
The property: Industrial warehouse/office building.
Location: 328 Neilson St, Penrose,
Agency: Barfoot & Thompson Commercial.
Sales method: Auction at 10.30 am, February 18.
Where: 34 Shortland St, Auckland CBD.
- Divided into three self-contained units.
- Three long established tenants.
- Split risk spread with multiple tenancies.
- Prominent street frontage with high visibility.
- Business 6 zoning for heavy or noxious industries.
Brennan Wyllie of Barfoot & Thompson.
James Marshall of Barfoot & Thompson.