A fully leased three-level commercial building with mixed-use zoning, in the heart of Auckland’s coveted double Grammar zone, is for sale as a split-risk investment with value-add potential.
Located at 24 Manukau Road, Epsom, the freehold property enjoys huge profile to a major arterial route on the fringe of sought-after Newmarket and close to motorway on-ramps north and south.
The diverse tenancy mix provides astute buyers with the opportunity to anchor an investment with one long-term lease, plus the ability to add almost immediate value through other tenancies.
Colliers International’s Auckland Investment Sales team has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 2 December, unless it sells earlier.
Associate Director David Burley, who specialise in Newmarket and city fringe property, says it is an opportunity to acquire an asset with several investment fundamentals.
“This property ticks all the boxes with an A-plus seismic rating, versatile mixed-use zoning and an attractive location near numerous amenities, transport links and schools.
“With a mix of long and short-term tenants, there is also a significant opportunity to increase income returns over a short period of time.
“The property currently returns a net annual passing income of $600,183 from three tenants who each occupy a full office floor.
“Constructed in the 1980s, the three-level building has a net lettable area of 1,877sq m and boasts a seismic rating of 142 per cent NBS.
“It is situated on a strategic freehold title of 1,476sq m with 51 car parks, most of which are covered undercroft parks.
“Versatile Business Mixed Use zoning provides long-term options for repositioning the asset, including residential conversion or intensive redevelopment.”
Kris Ongley, Associate Director of Colliers’ Auckland Investment Sales team, says the property is strategically positioned in the desirable and recognised city fringe suburb of Epsom.
“It is situated at the northern end of Manukau Road, at the Epsom juncture with Newmarket and directly opposite Epsom Girls’ Grammar School, with 30m of frontage providing excellent profile.
“This location offers excellent connectivity, with motorway on-ramps at St Marks Road and Gillies Ave. It is also on a major bus route, with regular services to the CBD and airport.
“This location is bolstered by an attractive car parking ratio of one space for every 37sq m of net lettable area.”
Ongley says the building’s interior suits professional services or medical occupiers, with the floors generally fitted out with suspended ceilings, partitions, and carpet or vinyl floors.
Each office level also has a separate kitchenette and toilets. Services include a 15-person lift and air conditioning.
The anchor tenant, Alpers Dental, occupies the 705sq m top floor on a new long-term lease from settlement, with additional rights of renewal. This lease will return approximately half of the total passing income.
The 658sq m second floor is occupied by broadcast production and post-production company SunPix Post, which specialises in producing Pasifika content. The company’s deposit-secured lease runs to March 2021, with a three-year right of renewal to March 2024.
The 514sq m first floor is occupied by RPL Accountants on a lease expiring in September 2021, with no rights of renewal. This provides an opportunity to grow income by securing a new lease on favourable lease terms.
“With so many options for adding value in the short and long term, this split-risk asset is sure to appeal to savvy investors seeking to grow their returns,” says Ongley.