Tenanted property on the city fringe
The freehold commercial building at 12-16 Auburn St has a six-year lease. Photo / Supplied
A two-storey commercial building for sale in Grafton on the Auckland City fringe offers abundant office and warehouse space.
The property at 12-16 Auburn St comprises 762sq m of floor space on a 749sqm site and is being marketed by JLL agent Ben Jamieson, through an expression of interest campaign, closing on March 3.
“The vendor, Tasman Machinery, currently occupies the building,” says Jamieson. “They have decided to pursue a sale-and-leaseback for business reinvestment, and will take a six-year lease over the entire building. For the new owner this means a solid, passive investment that will bring in $170,000 rent (net) per annum.
Jamieson says the lease terms are negotiable. “However, we are proposing a six-year term with two rights of renewal of three years, with annual rent reviews and fixed annual rental increases of 2 per cent and thus guaranteed growth for the successful investor.”
He says tenant Tasman Machinery was first registered in 1966 and is a leader in plastics processing technology.
“It supplies high-tech manufacturing solutions to the Australian and New Zealand plastics sector. This company exports to 82 countries and counts its customers in the millions. Sistema is just one of the companies that Tasman deals with.
“This area of Grafton is zoned for Business-Mixed Use under the Auckland Unitary Plan, which opens up many possibilities in terms of the site’s development potential in the longer term,” Jamieson says.
The property is a mix of concrete block and glazing with aluminium joinery. It was built in the 1980s and has an 87 per cent seismic rating. It has 11 covered and four uncovered carparks, and Tasman’s office space has had a modern fit-out.
Auburn St — which runs between Khyber Pass and Boston St— is within easy walking distance of Mt Eden station, Grafton station and Auckland Hospital. It’s close to the new Auckland University campus on Khyber Pass, Auckland Grammar School and St Peter’s College.
JLL’s Managing Director Nick Hargreaves says several factors make the city fringe popular and investors still have a huge appetite for property there.
“The Unitary Plan allows for Mixed Use zones around centres and along high frequency public transport routes, making it easier for a variety of residential and commercial developments to happen in the city fringe.”
Auckland Council’s investment in transport will pay dividends for city fringe property owners.
When the City Rail Link opens in 2021, Britomart will become a through-station and Auckland’s entire rail network will benefit from rapid rail access. “The City Rail Link will open up areas like Newmarket, Grafton, Mt Eden and Kingsland, bringing a new level of vibrancy to these locations,” he says.
“Tenants who can’t afford CBD locations can take premises in the fringe and still be close to town. Imagine being able to use the train to get to a meeting in the city in minutes,” Hargreaves says.