Industrial with uplift on Parkhead
A tidy North Harbour warehouse and office unit is for sale with a recently renewed lease, presenting an opportunity to acquire a sought-after passive investment with locked-in rental growth.
Colliers International is marketing Unit A, 9 Parkhead Place, for sale by deadline private treaty closing at 4pm on Tuesday 20 November, unless it sells earlier.
Industrial specialist Matt Prentice says the 675sq m strata freehold property has a prominent road front position at the gateway to a block of three units.
“Well located in an established Auckland industrial area, this tidy investment property comprises a 6m stud warehouse along with office and amenity space.
“Originally constructed in the 1980s, it has recently been fully renovated inside and out, making it a true bottom-drawer investment.
“The warehouse space is clear span with access through one roller door to the car park and a secondary roller door to a securely fenced concrete yard.”
The property is leased to Corea International Limited, a freight forwarding company that has operated a customs and biosecurity accredited facility since 2010.
The lease currently returns $117,800 in net annual rent, but Corea has recently renewed its tenancy for a further four years.
The new lease, effective from 1 March 2019, will return $120,745 in net annual rent. A further four-year right of renewal is available from March 2023.
Rental reviews indexed to inflation are due in March 2023 and 2025, with a market review in March 2021.
Ryan de Zwart, of Colliers’ North Shore team, says the functional building has a sought-after warehouse to office ratio.
It comprises a 485sq m warehouse along with 195sq m of office and amenities and a 90sq m mezzanine.
The sought-after security fenced concrete yard offers 120sq m of space, currently being used to house two 40ft containers.
“The front yard also offers a good amount of on-site car parking, with 14 marked spaces, as well as prominent signage out front.”
The well-presented office spaces, which benefit from good natural and artificial lighting, are split over two levels.
“The offices are air conditioned throughout, with amenities on both the ground and first floors. The flooring is a mix of tiles, vinyl and carpet.”
The building is of modern construction and design with concrete pad foundations, concrete block columns, block walls and steel beams.
The external cladding is a mix of concrete block, vertical steel cladding, composite panels and long run roofing.
The aluminium glazing includes full-height windows on the ground floor, allowing for showroom use if desired.
The property is located on the northern side of the western end of Parkhead Place.
This position is central to the North Harbour industrial estate, with access to main arterial routes nearby via the new western link interchange at Albany Highway and the Northern Motorway interchanges at Constellation Drive and Greville Road.
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