A modern mixed-use investment property in the sought-after Auckland city fringe suburb of Eden Terrace is for sale with multiple options to add value.
The property at 26-32 Virginia Ave East is nestled in a pocket of commercial and residential activity between New North Road and Ian McKinnon Drive, less than 2km from the CBD.
It is 87 per cent occupied by two established property companies, which together return a split-risk passing income of $647,000 plus GST in net annual rent.
A new owner has the opportunity to add value by leasing the remaining commercial space, potentially bringing the fully leased market rent to $753,000 plus GST.
The property’s favourable Business Mixed Use zoning would also allow a new owner to explore residential conversion or redevelopment options.
Colliers International’s Auckland Investment Sales team is marketing the property for sale by deadline private treaty closing at 4pm on Thursday 23 July, unless it is sold earlier.
Associate Director Jonathan Lynch, who specialises in property on Auckland CBD’s western fringe, says it is a superb find in a tightly held area.
“Built in 1997, the property provides a net lettable area of 2,651sq m on a 1,541sq m freehold site with 53 car parks.
“It comprises an attractive low-rise commercial building with two office floors, a ground level warehouse and basement car parking.
“The building sits proudly on a ridgeline position which provides fantastic natural light with uninterrupted views west to the Waitakere Ranges and north over the CBD.
“The longstanding global anchor tenant is OCS, which is New Zealand’s largest facilities management services provider. This income is supplemented by a lease to specialist surveying company Alexander & Co.
“This strong tenant covenant is matched by the property’s superb location and connectivity. It is situated 400m from the Mt Eden Train Station, which will undergo a major upgrade before the City Rail Link is completed in 2024.
“Situated within a comfortable walking distance of the station but far enough to be unimpacted by the upgrade activity, the property is sure to benefit from the improving infrastructure of the area.
“Astute investors with an eye to Eden Terrace’s growth will not want to miss out on this superb opportunity to add value. Additionally, owner-occupiers looking for a strategic head office for their business may consider this as an enviable opportunity with solid holding income.”
Colliers Broker Gawan Bakshi says Virginia Ave East is within a vibrant area just 1.75km south of the Auckland CBD.
“The area consists of a mixture of residential apartment buildings, office developments, childcare, commercial accommodation and small industrial mixed-use buildings.
“The property is located prominently on a corner site, with 60m of northeast frontage to Virginia Ave East and 30m of southeast frontage to Minnie Street.
“Business Mixed Use zoning allows for development of up to 18m in height and a variety of uses, including a broad mix of smaller scale commercial as well as residential integration.”
Bakshi says the property has good accessibility to major transport routes including the Western and Southern Motorways.
“The property has plentiful parking, with 27 gated and secure, 20 undercover and six outdoor car parks.
“It is also on the doorstep of buses that service both Dominion Road and New North Road, as well as being close to the train network.”
Colliers Broker Hamish Paterson says anchor tenant OCS New Zealand is the country’s largest facilities management services company.
“Operating in New Zealand for over 85 years, the company has a nationwide staff of more than 4,000 people. Its services include premises, window and specialist cleaning, including of hospitals and aircraft.”
OCS occupies 961sq m of office space on the second floor, 729sq m of warehouse on the ground floor, and 34 car parks.
Tenant Alexander & Co was established in 2000. The company provides building surveying, quantity surveying, design, dispute resolution and testing services.
Alexander & Co occupies 550.4sq m on the first floor plus 12 car parks.
A further 310.1sq m of office space on this floor, representing 13 per cent of total lettable area, is vacant and available to be rented or converted for residential.