Entry level Wairau Valley properties
Three titles for sale are at 49 Porana Rd. Photo / Supplied
Three sought-after small warehouse properties in the Wairau Valley industrial precinct are for sale as affordable individual investments or together as a multi-tenanted portfolio.
Colliers International is marketing 49 Porana Rd for sale by deadline private treaty closing 4pm September 26, unless sold earlier.
The property comprises a block of six self-contained, fully leased industrial units and a cell tower on three freehold strata titles.
Euan Stratton of the agency’s North Shore office says the vendor is open to offers on one, two or all three of the titles.
“This is an ideal chance for both entry-level and established investors to secure a foothold in a sought-after industrial location,” Stratton says.
“Each of the three titles is split into two units, offering separate income streams. It’s very rare to find multi-tenanted assets at this price point, making this an exceptional opportunity for first-time commercial property investors. Investors also have the opportunity to secure all three titles together as a multi-tenanted investment, offering seven income streams. With strong tenant demand for smaller industrial units in the current market, the combined offering would be a welcome addition to any existing property portfolio.”
Stratton says the individual investments earn net annual rent of between $44,200 and $53,422. The combined investment earns a total rent of $145,722.
The units are of slightly different sizes, with a combined net lettable area of about 963sq m.
Each unit comprises a medium stud warehouse with a small corner office, amenities and handy mezzanine storage.
Constructed in the 1980s, the block of units runs the full length of a 1583sq m landholding with Business Light Industry zoning.
The building has a 100 per cent IEP (Initial Evaluation Process) seismic rating and is constructed of concrete foundations and floors, concrete block exterior walls and plasterboard intertenancy walls.
The clear span warehouses are accessed via roller doors, with stud heights of between 4.2m to 5m.
The units have a shared driveway off Porana Rd, with on-site car parking available directly in front of the units.
Colliers’ industrial specialist Matt Prentice says Porana Rd forms a link between Wairau Rd and Sunnybrae Rod, with controlled traffic light intersections at both ends.
“The property is well located within Wairau Valley, which is one of the longest-established industrial areas on Auckland’s North Shore.
“It is located 9km north of Auckland’s CBD and 10 minutes’ drive from central Takapuna under normal traffic conditions.
“The area remains an attractive and strong location due to the large surrounding residential population and has excellent transport links north and south via Tristram Ave.
“The area has undergone a shift in focus recently towards more retail-type activities. However, it is still home to numerous small light industrial businesses, including a cluster of automotive and engineering occupiers.
“With extremely low vacancy rates across the North Shore, hardworking, tradie-type offerings such as these make for solid performers now and into the future.”
The first freehold title, comprised of Units 1 and 2, has a net lettable area of 377.23sq m. It returns $48,100 in net annual rent.
Unit 1 has an area of 253.47sq m including a 28sq m car port. A five-year lease returns $26,000 in rent, with a four-year right of renewal to 2024. Market reviews are due every two years from October.
Unit 2 has an area of 123.76sq m. A two-year lease earning $22,100 in rent has two rights of renewal of the same term. Market review are on renewal with Consumer Price Index reviews every two years.
The second title, comprising Units 3 and 4, has a net lettable area of 257.89sq m. It returns $44,200 in net annual rent.
Unit 3 has an area of 128.17sq m. It is signed to a five-year lease returning $22,100 in rent, with a five-year right of renewal to 2026. Market reviews are due in December 2018 and 2020.
Unit 4 has an area of 129.72sq m. It is signed to a three-year lease earning $22,100 in rent, with a three-year right of renewal to 2022. Market reviews are due in October 2018 and 2020.
The third freehold title – comprising Units 5, 6 and a cell tower – has a net lettable area of 327.80sq m. It earns $53,422 in net annual rent.
Unit 5 has an area of 137sq m. It is signed to a three-year lease earning $24,000 in rent, with a three-year right of renewal to 2024. Market reviews are due in September 2020 and 2022.
Unit 6 has an area of 190.8sq m. It is signed to a four-year lease earning $26,000 in rent, with a four-year right of renewal to 2024. Market reviews are due every two years from October.
The cell tower earns an additional $3,422 in net annual income.