A split-risk investment opportunity on a prominent corner site in an established and growing industrial location in Auckland will pique the interest of buyers looking for a property with significant appeal.
33 Spartan Road in Takanini has a site area of 3,599sq m occupied by a modern building that is split into four units with a total net lettable area of 2,573sq m.
The highly functional freehold property, which is zoned Light Industry, is conveniently located in South Auckland and is only 400m from the State Highway 1 on-ramps.
Greg Goldfinch, National Director of Industrial at Colliers, and Associate Directors of Industrial Mitch Broderson and Ash Vincent are exclusively marketing the property for Colliers that will go to auction at Level 1, Colliers House, 52 Highbrook Drive, East Tamaki on Wednesday 8 September, unless sold prior.
Goldfinch says the mixture of high-calibre tenants in a growing location makes this an enticing property for a range of buyers.
“Demand for high-quality assets in tightly held areas such as 33 Spartan Road in South Auckland continues to grow due to the attractive nature of these highly sought-after properties that provide a relatively passive style of investment with plenty of future benefits,” Goldfinch says.
Unit 1 is the largest of the modern complex with access coming via two motorised doors, one of which is at the northern end of the warehouse with the other at the southern end, providing exceptional flow.
The 868sq m unit comprises a 707sq m clear-span warehouse, 80sq m open-plan ground floor office and lunchroom area, with an 82sq m open-plan office on the first floor.
RJ International Customs & Freight Limited are the tenants for Unit 1 and began a four-year lease in April 2021 with two further rights of renewal for three years each with a final expiry in March 2031. The lease includes two-yearly market rent reviews, with a current net income of $118,588 plus GST per annum.
Unit 2 is 437sq m and comprises a 362sq m high-stud warehouse with 39sq m of ground floor office space, including a kitchenette and amenities, and 36sq m of office space on the first floor.
Tenants BMH Pool and Spa Covers Limited began a three-year lease term in March 2021 and have two further rights of renewal for two years each with a final expiry in February 2028. The lease includes annual CPI increases with a current net rental income of $54,000 plus GST per annum.
Beckman Coulter NZ are the occupants of the 664sq m Unit 3, which comprises a 327sq m warehouse, 83sq m warehouse under the mezzanine, 84sq m of ground floor office space, 88sq m of first floor office space, and an 83sq m basic timber mezzanine storage structure.
They are in the midst of a three-year lease that provides net annual rental income of $86,720 plus GST with a final expiry of 31 December 2022; a market review is set for 1 January 2022.
Unit 4 measures 605sq m and comprises a 457sq m warehouse, 74sq m of ground floor office space, and 73sq m of office space on the first floor.
PB Traders Limited are the tenants of Unit 4 and commenced a three-year lease on 1 August 2021 with two further rights of renewal for three years each with a final expiry in July 2030.
Their lease agreement provides 2 per cent fixed annual increases with a current net rental income of $82,000 plus GST per annum.
Broderson says the split-risk nature of the site will provide diversified income streams for buyers, while dual road access from Spartan Road and Oakleigh Avenue provides plenty of upside.
“The property is only 2km away from the Takanini Town Centre along with the Southgate Shopping Centre, which includes a range of retail and commercial amenities that service the booming population,” Broderson says.
Vincent says the population growth in South Auckland continues to feed demand for commercial property in the area.
“The new motorway on-ramps from Spartan and Great South Road, along with the recent widening of the Southern Corridor motorway, illustrate the ongoing infrastructure investment and commitment to facilitate growth in the area.”