A standalone industrial unit with a sought-after mix of warehouse and office space and a longstanding tenant covenant is for sale in Henderson providing all the fundamentals of a bankable bottom drawer investment for discerning buyers.
On offer is a 1,171 sqm unit with approximately 65 per cent of the total area in warehousing plus recently refurbished offices, a workroom and mezzanine-level storage.
The stratum in freehold title building has light industrial zoning and benefits from ample car parking as well as dual driveway access.
The property at 3/133 Central Park Drive in Henderson will go to auction at 11am on Wednesday May 5, unless sold prior.
Colliers Director Matt Prentice who is marketing the property with colleagues Jack Tuson and Dhiru Patel says it will appeal to investors looking to add a low-maintenance, profitable property to their portfolio.
“This stratum in freehold, standalone industrial unit is an exceptional find, allowing investors to capitalise on a new 6-year lease term, as Auckland’s industrial vacancy rate remains near record lows.
“Henderson’s industrial precinct is particularly sought after by occupiers, demonstrated by vacancy that continued to fall throughout 2020.”
The prime industrial vacancy rate in Henderson is now at 1.6 per cent, which is down from 2.2 per cent in August 2020, according to Colliers Research.
Tuson says the tenant covenant makes for an outstanding passive investment.
“The property is leased to Larsen & Best Limited and returns $150,000 net per annum plus GST and operating expenses.
“Larson & Best are a New Zealand owned and operated print finishing business that has provided top quality products and services to the market for over fifty years.
“They have operated from this property for the last forty years and have recently signed a new six-year lease with fixed rental growth.
“The new lease term runs through to March 2027 with a further two four-year rights of renewal giving a final expiry date of 28 February 2035.”
West Auckland Industrial specialist Patel says that Henderson is popular with occupiers due to the amenity in the area and connectivity to the rest of Auckland.
“Henderson is a prime West Auckland location that is characterised by a mix of modern developments catering for a range of light manufacturing and warehousing activities as well as retail and commercial businesses.
“It is popular with occupiers due to extensive amenity in the local area from Henderson Central as well as proximity to Lincoln Road, WestCity Waitakere mall and NorthWest Shopping Centre.
“Henderson is also well connected to the rest of Auckland being just 15kms from the CBD and having easy access to the South through the Waterview Tunnel and the North Shore via State Highway 18.
“Located on a main arterial route within one kilometre from motorway on-ramps, this property boasts particularly easy accessibility.
“Despite being an already well-established industrial location, Henderson has been earmarked as one of 10 key metropolitan centres in the Auckland Plan meaning it will continue to grow.
“Extensive urban development is expected over the next 30 years as Panuku Development Auckland leads the council’s regeneration project with plans to develop several of their owned sites in the area.
“These factors will ensure Central Park Drive remains a premium industrial location as the city grows around it.
“This functional industrial building with a high-quality tenant is expected to attract strong interest from discerning investors looking to secure a foothold in a prime west Auckland location.”