Building promises more than parity returns

5:00 AM Saturday March 7, 2015 Colin Taylor

An elevated view of industrial building for sale at 4 Parity Place, Wairau Valley.

A North Shore industrial building on four separate titles and offering the split risk security of multiple income streams in the popular Wairau Valley is due to go under the hammer.

The freehold property at 4 Parity Place will be sold as one parcel by auction at 11 am on Wednesday March 18 at Colliers International’s offices at 151 Queen Street unless it sells earlier by negotiation.

“The building is situated within one of North Shore’s most tightly held commercial areas,” says Euan Stratton of Colliers International who, with colleagues Matt Prentice and Mike Ryan, is marketing the 893 sq m site.

“This property is especially appealing because there are literally only three or four similar properties on the market within the Wairau Valley Industrial Estate.

“The fact this property offers four separate units ranging in size from 198 sq m to 123 sq m makes it even more attractive to investors,” Stratton says. “Small units of this nature are extremely hard to find in this locality – and with no more land available, they won’t be building any more like them.”

The property with four tenants and a net lettable area of 656 sq m currently earns annual rental income of $83, 278 plus GST.

Stratton says the multiple income streams provide a reduced investment risk for new buyers.

The tenants include three auto mechanics and a waterproofing business. The separate leases have the flexibility of a range of expiry dates over the next two years which adds more options for prospective buyers, says Stratton.

“Investors can enjoy the current rental income of the property and then look to free up capital by selling some of the titles over the next couple of years as leases come up.

“Commercial and industrial units of this size are keenly sought after by owner occupiers especially in this location.”

Stratton says the current vendor found new tenants very quickly for the three units that became available during his seven years of ownership.

“One of the tenants Berton Automotive has occupied the rear unit for more than 12 years and has a further right of renewal to extend its current lease to 2019 so there is also a degree of stability with this investment without needing to consider selling individual units in the short term if desired.”

The circa 1970s concrete block construction building with its steel portal frame roof and long run iron has an Initial Evaluation Procedure (IEP) of 90 per cent.

Prentice says this is impressive for buildings of this vintage and underlies the quality of the premises.

The simple rectangular structure features a saw tooth roof allowing the entry of natural light, roller shutter doors and pedestrian entries for each of the four units. Each unit has a mezzanine area running along their eastern walls, accessed by internal stairs and running back to the clerestory windows incorporated within the saw toothed roof design.

4 Parity Place, Wairau - exterior frontage.jpg

The unit sizes are 198 sq m, 177 sq m, 155 sq m and 123 sq m and include a small office and amenity space for each unit along with generous car parking facilities.

“The four to six car parks allocated per unit is exceptional for units of this nature in Wairau Valley,” says Prentice

The Business 9 zoned,flat, level access site has a road front position on Parity Place which is a cul-de-sac off Sunnybrae Rd and directly opposite Porana Rd.

“The central location on Auckland’s North Shore, just a 10 to 15 minute drive to the central Auckland central business district and close to the Tristram Avenue State Highway One motorway on and off ramps further enhances its attractiveness,” Prentice says.

“However, it is not just the favourable position that making this property an appealing investment. The high growth and low vacancy in the Wairau Valley area means there has never been a better time to get hold of property in the precinct.”

“Ongoing development in the area has seen a number of well-known retail and commercial occupiers move in recent years.

“Pakn’Save and Bunnings Warehouse have opened in the Wairau Valley within the past few years complemented by a number of new retail offerings.”

Ryan says strong demand in the Wairau Valley means there are very few investment properties offered here for sale.  

“Properties in this area tend to be very easy to let, with many occupiers queuing up to gain a foothold in the locality,” Ryan says.

 Euan Stratton of Colliers International.jpg

Euan Stratton of Colliers.