A hard to find Mt Eden unit
The 516sq m commercial unit at 45C Normanby Rd, Mt Eden. Photo / Supplied
One of a diminishing number of smaller commercial and industrial units on the fringe of Auckland’s CBD is for sale fully leased to a long-standing occupant and with fixed rent increases.
The 516sq m commercial unit located at 45C Normanby Rd, Mt Eden, is earning $188,236 plus GST net per annum and comes with the added bonus of 19 car parks, a very large allocation for a property of this size, says Mike Adams of Bayleys’ Auckland City & Fringe team.
Adams, in conjunction with colleague Jean-Paul Smit, is marketing the propertywhich is one of 14 down to be auctioned on Thursday April 11, commencing at 11am, unless sold earlier.
The unit comprises an 84sq m entry and reception area, 236sq m of ground floor office and amenities plus a 196sq m mezzanine office and amenities area. Adams says the property has been occupied by C & L Group Ltd for over 15 years.
“The company specialises in providing electrical services for commercial buildings and has built up a considerable track record of success across a variety of large-scale commercial development projects.
“It took out a new six-year lease on the premises in 2015 after an extensive refurbishment and modernisation which included a new roof and upgrade of electrical/security systems.
“The unit is now fitted out to a high standard as quality, character office space with a good stud height plus a mezzanine floor for use as C & L’s head office,” Adams says.
“The company also leases a warehouse unit next door which is under separate ownership and is accessed by a consented entranceway between the two. It has therefore made quite a commitment to this location.”
C & L’s lease runs until June 2021, with three two-year rights of renewal.
Jean Paul-Smit says one of many attractive features of the offering is the lease’s built in rent growth with fixed two-yearly rent increases based on the increase in Consumer Price Index (CPI) plus one per cent.
“This means that rental growth will always outstrip inflation, with the next increase due in July 2019 which will result in an uplift in income from the property not long after settlement.
“Also underpinning the lease’s income is the added surety of a bank guarantee.”
He says smaller units of this nature close to the CBD are in increasingly short supply as commercial and industrial properties continue to be redeveloped for residential use.