Wairau warehouse with massive exposure and a new six-year lease
A high-profile Wairau Valley investment property with a renewed six-year lease to well-known national brand Tile Warehouse is being offered to the market for the first time in 24 years.
Located on one of the most prominent arterial routes on Auckland’s North Shore, the property at 120 Wairau Road comprises an 860sq m warehouse, showroom and office on a 1,525sq m freehold site.
Janet Marshall and Euan Stratton of Colliers International North Shore are marketing the property for sale by auction at 11am on Wednesday 3 July in the Colliers Takapuna office. It will not be sold prior.
Marshall says it is a chance to secure a tightly held industrial asset with superb investment fundamentals.
“With its sought-after location, massive profile and strong tenant covenant, this is one of those investments that is greater than the sum of its parts.
“The property occupies a commanding position on one of the North Shore’s most prestigious commercial strips, with exposure to almost 30,000 daily passing vehicles.
“The building has a generic layout with a glazed front showroom, first-floor office, medium stud warehouse with roller door entry, and excellent natural light.
“The site provides ample on-site parking for 17 cars, a fully secured side yard, and the opportunity to maximise exposure with signage.
“The tenant is a well-established national brand with a superb reputation within the commercial and residential property sectors.
“Tile Warehouse has occupied the property since 1999, and has recently signed on for a further six-year lease, returning $179,327 plus GST in net annual rent.
“Opportunities to acquire investment stock of this calibre are extremely rare, particularly on Wairau Road. This auction is one you can’t afford to miss.”
Stratton says the property is being offered to the market at a time when vacancy rates remain very low.
“The latest Colliers International research survey shows industrial vacancy on the North Shore remains below 2 per cent.
“The North Shore’s overall industrial vacancy rate was 1.9 per cent as at February 2019, little changed from 1.8 per cent a year earlier.
“The Wairau Valley industrial vacancy rate sits at 2.2 per cent – ever so slightly higher than the average, but still stubbornly low despite some new supply coming on board.
“This shows that tenant demand for quality properties in the area remains high.”
Marshall says the property is zoned Light Industry under the Auckland Unitary Plan, which allows for a range of lower-intensity industrial uses including manufacturing and distribution.
“The property is also within an Identified Growth Corridor. This zoning overlay provides for large-format retail activities that are not typically allowed by the underlying zoning.
“This could provide an opportunity for future redevelopment or change of use.”
Stratton says the Wairau Valley commercial and light industrial precinct is close to Auckland CBD via the Northern Motorway and has a well-established surrounding residential catchment.
“The property offers easy access to the nearby Tristram Ave motorway interchange, located just north of the property.
“The wider area is home to a range of brands that underpin the area’s popularity, including Mitre 10, Bunnings, Tristram European, Supercheap Auto and Repco.”
Tile Warehouse has been in business for 30 years. It supplies quality tile and stone products including porcelain, ceramic, glass and metal tiles, mosaics and natural stone.
Tile Warehouse’s representatives provide nationwide coverage for commercial and residential builds. Its services include fit-for-purpose product selection, sales and supply, and the provision of installation specifications.
The auction is to take place at Colliers International’s North Shore office at Level 1, 129 Hurstmere Road, Takapuna, Auckland.
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