A highly functional, fully refurbished industrial building with split-risk income streams is for sale, offering prospective purchasers an exceptional opportunity to secure a high-profile building in the investment hotspot of Albany.
Colliers Director Matt Prentice, who is exclusively marketing the property for sale alongside Associate Director Ryan De Zwart and Director Shoneet Chand, says it’s the premier Albany industrial asset that investors have been waiting for.
“This property is a compelling investment option due to its solid, split-risk income stream, the quality of the recently refurbished building and its profile in a highly sought-after precinct that has an extremely low vacancy rate.
“On offer is a standalone 2,088 sqm building, that is split into two adjoining tenancies, on a high-profile 3,740 sqm freehold site at 7-9 Cowley Place in Albany.
“The asset will appeal to those looking for a diversified income stream with the fully-tenanted property returning some $311,985 per annum plus GST from two separate leases, both with built in rent reviews.
“The building has been recently refurbished and is highly functional with a sought-after high warehouse ratio of 84 per cent and a stud height of up to 8.3 metres.
“With 69m of street frontage, dual access, ample car parking, a secure yard and a designated container drop area, this property provides some serious presence and ticks all the boxes for a top-quality investment.”
De Zwart notes that the calibre of tenants and favourable lease terms further add to the appeal.
“The largest tenancy of some 1,277 sqm at the southern side of the building is occupied by European Ceramics, a 30-year-old New Zealand owned business and leading tile and stone importer who have been on the site since 2010.
“Their tenancy at 7a Cowley Place has over 1,000 sqm in warehousing plus two levels of office totalling some 200 sqm that includes a lunchroom and amenities.
“The warehouse is highly functional with access through a 6.2m roller door and stud height of up to 8.3m. It also has the ability for gantry cranes to be installed onto the two existing heavy-duty rails.
“The building is flanked by some lower stud warehousing of approximately 6.5 metres on both sides that benefits from excellent natural light through full length clerestory glazing on the eastern and western sides of the building.
“The lease to European Ceramics is currently returning some $201,985 per annum on a six-year term that’s expiring in December 2025. There are two market rent reviews, in 2022 and in 2024, as well as a personal guarantee in place.
“The adjoining tenancy at 7b Cowley Place is occupied by Wine Central, an online liquor store that provides customers a carefully curated profiling service to assist them when selecting beverages that align with their taste profiles.
“Wine Central leases some 811 sqm on the northern side of the building, which is in an 'L' shaped configuration that’s accessed via a 6.2 metre roller door.
“The space at 7b Cowley Place includes open mezzanine storage across the full width of the northern side of the warehouse with a 3.5 metre stud warehouse beneath. There is a single office, lunchroom, and amenities on the ground floor as well as another office and amenities on the mezzanine level.
“The lease to Wine Central is retuning around $110,000 net per annum on a four-year term with a right to renew for a further four years and final expiry in February 2029. Three market rent reviews and a six-month bank guarantee are in place.”
Chand says that Albany is a hugely popular and growing location due to the array of local amenity and accessibility to other parts of Auckland.
“The property is located on the western side of Cowley Place, a cul-de-sac which runs off the main arterial of Rosedale Road.
“Albany’s commercial centre is just a few minutes’ drive away, while proximity to the on ramp at Greville Road, puts the property around 15 minutes from Auckland’s CBD outside peak hours.
“The surrounding area has been progressively developed since the late 1990s and includes a mixture of business activities such as warehousing, showrooms, office and retail.
“Rosedale has also recently seen the approval of a $70m bus station upgrade, with work expected to commence in mid-2022 as part of the Northern Corridor Improvements project.”
The property is zoned Business Light Industry, which allows for a wide range of uses including manufacturing, warehousing, and distribution.
Interested parties are encouraged to inspect before the Deadline Private Treaty close off at 4pm Tuesday 15 June as the property may sell prior.