Two industrial sites near to the burgeoning airport and tenanted by a company who manufacture and sell lawnmower and outdoor equipment, are for sale offering investors solid tenant commitments and the flexibility to add value with development.
The first site is a 6,242sqm property at 12 Andrew Baxter Drive and the second is a 2,025sqm site at 16 Andrew Baxter Drive with both being home to standalone warehouse/office facilities.
The sites are being marketed by Claus Brewer, Chagalle Ellis and Paul Steele from CBRE and are being sold by way of Deadline Private Treaty closing on Thursday 1 November 2018 at 4pm (unless sold prior).
Located in the popular Airport corridor Steele says it’s not often you get properties this well-positioned that can be purchased together or separately.
“The airport corridor has become highly sought after by third party logistics and freight companies in recent years due to its proximity to Auckland Airport and arterial links to the wider Auckland area. Now further improved via the Kirkbride Road interchange, with SH20A the Auckland CBD is a quick 17.5km drive away while Wiri Inland Port is 10km from the sites and SH1 only a short distance from there.”
Steele notes both sites consist of a mix of warehouse, office/showroom space with accompanying canopies, car parking and full concrete yard. Steele says the warehouse at 12 Andrew Baxter Drive is set across two bays with roof heights extending up to a maximum of 8.8m.
“With five slider doors the property offers a very clean modern warehouse space that has been maintained in immaculate condition. From a functional perspective, with one set of columns, the site has an extensive closed canopy, which provides excellent weather protected de-vanning areas.”
16 Andrew Baxter Drive recently underwent a substantial refurbishment and also includes roller doors, at the front, side and rear of the property, allowing drive through flow if required.
The site at 12 Andrew Baxter Drive also benefits from a vacant 730sqm section of land at the front of the site. This not only offers exposure onto the road, but it would also suit further development.
Steele says the opportunity to add more yard to extract additional income and improve the efficiency of access and flow, makes the properties a highly attractive investment proposition.
“The building’s design and layout provide a generic layout that would be desirable to the wider occupier market, providing further potential for multiple tenant solutions. Both sites, are zoned light industrial and currently tenanted by owner occupier, Stevens Products Limited which is selling to expand its operations.”
As part of its zoning the sites can be used for a wide range of activities, including manufacturing, production, logistics, storage, transport and distribution with builds up to 20 metres in height.
Steele says that although initial leaseback terms for both properties have been discussed at a total of approximately $585,000 annually with two rights of renewal, they can be structured to suit both parties.
“The leaseback period provides security and the ability to plan and market the property prior the departure of the current tenant, when they eventually relocate to their new facility.
“With the owner occupier selling, and lease terms still to be agreed, this is a valuable opportunity for savvy investors to engage and negotiate a lease back structure that works, particularly when you consider the flexibility of the property in this location, which can be leased to one or more parties – a key aspect for investors to consider when purchasing 12 and 16 Andrew Baxter Drive.”
Brewer says “There is extremely strong appetite for industrial and logistics assets, vacancy is currently at approximately 0.9% and expected to remain low, so we view demand for this sector to remain high going forward. As the low interest rate environment also continues it allows investors as well as owner occupiers with long term exit strategies to purchase properties of this nature.”
As a location, and with Auckland airport continuing to position itself as a multi-use town centre that offers greater-than-ever access to the burgeoning South Auckland population, the sites will also benefit from proximity to a wide variety of work, hospitality, hotels, retail and amenities, says Steele.
“As Auckland airport continues to expand in this way, industrial sites will become increasingly scarcer and opportunities to secure prime property in the heart of the Airport corridor will become few and far between.”
ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBRE), 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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 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..
