Portfolio reflects robust Auckland region

5:17 PM Friday May 3, 2019 Colin Taylor

The 13-level tower block for sale at 87-89 Albert St, Auckland. Photo / Supplied

Auckland’s economy is expected to remain one of the best performing regions in the country, says John Urlich, commercial manager for Barfoot & Thompson, citing an independent survey commissioned by the agency.

“Continuing population growth and increased construction activity are helping to drive the local economy,” Urlich says. “At the same time, strong commodity prices for our exports, ongoing low interest rates, increased government spending and investment on infrastructure, housing, and transfer payments; will continue to support low to moderate national growth over 2019.”

Urlich says over 60,000sq m of space is being constructed or refurbished within the Auckland CBD office market, which will assist with the increased demand for space. 

“The industrial property sector with low vacancy rates and increasing rents has continued to expand putting increased pressure on demand for well-located developable sites, in preferred precincts, which are in short supply.

“Vacant space is now about 2 per cent  of the total stock. The area of vacant secondary space has also fallen significantly over the last year.

“The commercial and industrial markets are in good heart, with the economic drivers for the Auckland remaining robust,” Urlich says.

On this optimistic Auckland regional scene, Barfoot & Thompson Commercial has launched a new Insiteportfolio of Auckland-only properties featuring 14 Auckland city properties, five South Auckland offerings and four properties on the North Shore.

Eleven are for sale by deadline private treaty, three will go under the hammer, five are being sold by tender, three will be sold by negotiation and one is for lease.

A featured property in the new portfolio is a 13-level office tower in the Auckland CBD.

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The classic six-shop retail block at 16 Godley Rd. Photo / Supplied

“The building comprises 10 office floors, a street retail and office level, and two basement car parking levels,” says John Stringer who, with colleague Helen Han, is marketing 87-89 Albert St for sale by deadline private treaty closing at 3pm on Wednesday May 29.

“This property is strategically located to benefit substantially from major infrastructure upgrades in the immediate area including the City Rail Link, with Aotea Station nearby which is predicted to be the busiest station on completion; as is the New Zealand International Convention Centre, due for completion late 2020,” Stringer says.

The tower building with 7210sq m of net lettable area, excluding the two basement car parks with 58 covered and secure bays, is currently 68 per cent leased.

“It generates a net passing income of $1,133,740; but fully leased there is potential for estimated net income of around $2,092,000 per annum plus GST and outgoings,” Stringer says.

“A comparatively short lease profile and vacant space gives a purchaser the opportunity to refurbish or redevelop this property to add significant value to it,” he says.

The ground floor has a floor plate of 618sq m while the octagonal-shaped levels 1-10 have areas of about 680sq m each surrounding a central core that houses three lifts, internal staircase and bathroom facilities.

The building occupies a freehold, essentially square, land area of 1290sq m with a high-profile 35m frontage to Albert St.

Han says a detailed seismic assessment of the building was carried out by Structus Consulting Limited in 2016 for the previous owner and it assessed the building at 100 per cent of new build standard (NBS).

“The property is zoned  Business - City Centre in the part-operative Auckland Council Unitary Plan,” she says.

“This zone permits a wide range of activities and the greatest intensity of development in Auckland. It seeks to ensure the city centre is an international hub for business and learning, innovation, entertainment, culture and urban living.”

Another property Stringer is marketing, this time to go under the hammer, is to the west of the city in the suburb of Green Bay.

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Unit B at 19 Douglas Alexander Parade Albany. Photo / Supplied

“This is a classic strip retail block of six retail shops and one upstairs apartment situated opposite Titirangi Golf Course,” says Stringer who, with colleague Eddie Zhao, is marketing 16 Godley Rd for sale by auction commencing 10am on May 30 in Barfoot & Thompson’s city premises at 34 Shortland St - unless the property sells earlier.

The 686.4sq m building, which occupies a large freehold 1355sq m high-profile corner site, is fully leased and is earning $202,695 per annum plus GST and outgoings.

“Most of the tenants have been there long term so this sale represents a superb opportunity to purchase a solid investment property with a secure income stream in an established retail location,” Stringer says.

Zhao says the largely rectangular corner block, with frontages to both Godley Rd and Bishop

St is zoned Business - Neighbourhood Centre under the part operative Auckland Unitary Plan. “This zone applies to single corner stores or small shopping strips located in residential

neighbourhoods which provide residents and passers-by with frequent retail and commercial service needs,” Zhao says. “It typically allows buildings of up to three storeys high with residential use permitted on the upper floors.”

He says the property has been developed in stages over the years but generally the buildings appear to mostly date back to the 1950s and 1960s.

“On the Godley Rd frontage is a two-level mixed-use structure occupied by a ground

floor and basement level mower shop with a three bedroom dwelling above; an adjacent garage; and a former block of three shops that has been opened up to provide one continuous retail space leased to Seasons Market.

“The three-bedroom, one-bathroom apartment of 154sq m has an attached double garage and is accessed from the Bishop St frontage where a separate block of four shops are tenanted by a hairdresser, pharmacy, takeaway outlet and veterinary surgeon.

“Behind the Bishop St shops is a garage-type structure that has been converted

into a vegetable preparation area,” Zhao says.

Another highlight portfolio listing, across the Harbour Bridge in Takapuna, is described as comprising a light industrial building “with a corporate and architectural tinge” along with 27 exclusive car parks. 

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Attractions of 94 Hunua Rd, Papakura are low site coverage and a Heavy Industry zoning. Photo / Supplied

“Located in the heart of Albany, it has quick access to the State Highway 1 northern motorway and the Upper Harbour State Highway 18 motorway,” says Gary Seekup of Barfoot & Thompson North Shore Commercial.

With colleague Bruce Jiao, Seekup is marketing Unit B 19 Douglas Alexander Parade Albany for sale by deadline private treaty closing at 4pm on Wednesday May 29 at the agency’s Takapuna office at 129 Hurstmere Rd.

The stratum-in-freehold building, with a total gross floor area of 1054sq m, has been configured to encompass a 277sq m high-stud warehouse; a 233sq m temperature controlled production room; ground floor office space of 191sq m with amenities and first level offices of 304sq m; a 44sq m mezzanine plant room, 5m balcony and a lunchroom with outdoor area, Seekup says.

Jiao says the property is zoned Business Light Industrial under the Auckland Unitary Plan and is to be sold with vacant possession.

Another industrial property, also for sale with vacant possession and within the Insite portfolio, features low site coverage at the other end of Auckland in Papakura.

“This will appeal to owner-occupiers and add-value investors,” says Duncan Bell of Barfoot & Thompson South Auckland who, with colleague Rob Taylor, is marketing 94 Hunua Rd for sale by deadline private treaty closing at 4pm on Wednesday May 29 at the agency’s office in Building 5, 60 Highbrook Drive, East Tamaki.

“Warehouse and ancillary buildings, with a total gross floor area of 1325sq m along with front and rear yard space; occupy one freehold title of around 7172sq m of level regular-shaped land,” Bell says.

Taylor says the property, with dual road access, is zoned Heavy Industry and is situated 3km east of Great South Rd and 4.5kms from the Papakura State Highway 1 Southern Motorway Interchange.

“With a lack of industrial land for sale in and around Auckland, this sale creates plenty of opportunities for owner-occupiers and investors,” he says.

“It will be particularly attractive to heavy industrial users in warehousing, transport, engineering, machinery contractors, fabricators, car wreckers and other heavy yard users. “Add value investors will also be interested in the flexibility the site provides,” Taylor says.