Otara duo offer stellar retail and industrial opportunities
Otara duo offer stellar retail and industrial opportunities
| 28 February 2017
Two Otara properties offering strong prospects for industrial and retail property buyers looking to invest in an area seeing huge growth in Auckland’s southern corridor are being brought to the market.
The properties, an industrial redevelopment opportunity at 58-64 Lovegrove Crescent and a property at 3 Watford Street neighbouring Manukau Institute of Technology’s Otara campus with retail and community potential, are being marketed separately by sole agents Patrick Sammon and Lewis Watson from CBRE’s South Auckland office at a time when the South Auckland commercial property market has rarely if ever been hotter.
“Up and coming properties such as these represent increasingly scarce opportunities, and are being offered to the market at a time when retail and industrial yields and rental growth are at unprecedented levels,” says Patrick Sammon.
“Never before have we experienced such a strong market. With record rental growth and yields being achieved on quality investment opportunities offered to the market, we should still expect further yield compression into 2017.”
58-64 Lovegrove Crescent
58-64 Lovegrove Crescent is a prime South Auckland redevelopment opportunity at a time when new industrial space is extremely hard to find.
The existing warehouse building on a large 6,515sq m site offers a total floor area of 1,302sq m. It lends itself to being a prime redevelopment opportunity, or can be retained for interim rental purposes if required.
With an accessible road frontage location, the site provides street presence and unimpeded access. Buyers and future tenants will also benefit from the site’s superb access to a strong local labour pool and amenities including shopping centre, retail, motorway, petrol stations.
Lewis Watson from CBRE says the Industrial 5-zoned land and building is in a user-friendly industrial location with convenient access to the city, the inland port at Wiri and all major other industrial precincts in South Auckland.
“It offers immense potential for any owner occupiers, developers and investors looking to redevelop the sizeable site.
“Strategically located less than a kilometre from the Southern Motorway’s East Tamaki Road off-ramp, 58-64 Lovegrove Crescent enjoys efficient and largely unimpeded access to the motorway network whilst being conveniently less than five kilometres from the industrial hub of Highbrook Business Park.”
Watson adds that as property and land value prices in established industrial hubs inTe Rakau Road and Harris Road have been pushing up dramatically in recent years, the site offers an understated yet highly cost-effective solution.
“Being located in one of the last small enclaves of industrial zoned land in Otara, industrial sites such as this present an increasingly scarce opportunity.
“We’ve already seen recent purchasers in Lovegrove Crescent position themselves by land banking sites for future use in the area, as the location is destined to become a key compact industrial zone of note over the next five to ten years, offering the same fundamentals as other more well-known hubs located nearby but with even better connectivity to major freight routes.”
Other established occupiers in the area include Designer Textiles, Manukau Institute of Technology and Viking Group.
3 Watford Street
3 Watford Street is a character-filled building on a very high profile 762sq m site that fronts onto East Tamaki Road, as part of the Otara town centre.
Currently the home of a community training centre, the two-level, 1,172sq m property is located close to a busy McDonald’s restaurant, and has a Jett’s 24-hour gym and health centre as its immediate neighbouring tenants. The 1980s building includes a series of training areas and classrooms, training kitchen, lift and foyer.
Benefitting from great access, large scale car parking on its doorstep and the recent $2.1 million redevelopment of the Otara bus interchange and adjacent plaza, the site presents a fantastic retail opportunity for prospective purchasers, says Watson.
“3 Watford Street looks onto a strategic transport corridor and has great visibility for the large volumes of traffic using the route as southern access point to East Tamaki and its working population of around 30,000 people.
“Less than a kilometre to the Southern motorway and on the doorstep of the Otara Campus of Manukau Institute of Technology and its several thousand students, the property has a ready catchment and, with little work, could be converted into a great retail offering or continue to be used by community-based tenants.”
Watson adds that the property has long been known as a focal point for the local community, having previously been a community policing centre.
“It is well served by the Otara Town Centre car park, which is also home to the hugely popular Otara weekend market. With the increasing growth of the largely Pacific Island residential population, the value of the site and its prime location will only improve.
“This is one of the highest profile locations coming into Otara. It offers excellent drop-in amenity and proximity to a major bus interchange combined with new public space, which makes it a first-rate opportunity for investors, owner operators and developers.”
Patrick Sammon says that it is no secret that land values have had significant gains across Auckland recently.
“A perceived lack of Industrial land supply has seen investors, developers and occupiers look to secure land for future occupation. This has seen central precincts such as East Tamaki experience significant land value growth off the back of its connectivity to key infrastructure and its proximity to the fast-growing Eastern Auckland residential areas.
“The limited land opportunities in East Tamaki will see increased interest in the Otara area given its proximity to the industrial hub. Properties such as 58-64 Lovegrove Crescent will be the first to benefit.”
58-64 Lovegrove Crescent is offered for sale by Deadline Private Treaty Closing 30th March 2017, unless sold prior.
3 Watford Street is offered for sale by Deadline Private Treaty Closing 30th March 2017, unless sold prior.
The properties are to be sold separately, with one month’s notice given to the respective tenants.
For New Zealand/international news or global stories, follow us on Twitter.
ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.