A stand-alone industrial building with dual tenants in Albany is being presented to the market for sale for the first time in close to 40 years.
18 Parkway Drive, Albany has 951sq m of floor area on an elevated 1,626sq m freehold site that offers considerable road exposure to passing traffic. The property is zoned Business – General Business Zone under the Auckland Unitary Plan.
The building industry tenants are well-established occupants who have lease agreements that run until 2031, if their rights of renewal are used.
The total annual rental income from the property is $203,361 plus GST and both tenancies include regular market rent reviews.
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With 18 on-site car parks, the property offers convenience for occupants, suppliers, and customers, while the motorway network can be reached in a few minutes.
Colliers Directors Matt Prentice and Shoneet Chand have been exclusively appointed to market the property for sale and the deadline for offers closes at 4pm on Tuesday 14 November, unless sold prior.
Grand Glass & Hardware Ltd are the occupants of Tenancy A, which spans 493sq m and includes a warehouse, ground floor office, mezzanine office, and mezzanine storage. They have access to 10 car parks.
Their six-year lease began in June 2021 and includes one further right of renewal for four years leading to a final expiry of May 2031. Market reviews are set for every two years from 2025.
Tenancy B spans 458sq m and is occupied by Point Building Supplies Limited, trading as Tile Choice, who are a family-run retail business that sells tiles, flooring, a selected range of building supplies, and adhesive sealants.
Their four-year lease runs until 2025 and has two further rights of renewal for three years each leading to a final expiry of May 2031. Tenancy B includes a highly functional warehouse, low stud storage space, a ground and mezzanine floor office, mezzanine storage, and access to eight car parks.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the highly visible property represents an outstanding investment opportunity.
“It is incredibly rare to see freehold and affordable assets of this nature presented to the market. Investors will appreciate the diversified income stream that comes from having two established tenants,” Prentice says.
“Properties of this nature are tightly held and are keenly sought by buyers and include the key investment fundamentals they covet.”
Industrial floorspace remains in short supply across the wider Auckland region and the vacancy rate for prime space in the Mairangi Bay industrial precinct, where the subject property is located, is only 2.2 per cent, according to the latest research from Colliers.
The neighbouring North Harbour hub has a vacancy rate of only 0.4 per cent for prime space, indicating the strength of demand coupled with the dearth of supply.
Parkway Drive runs parallel to Constellation Drive, which is a main thoroughfare for traffic entering and exiting State Highway 1 and State Highway 18. It also services residents accessing the north-eastern bays, including Mairangi Bay, Campbells Bay, and Murrays Bay.
Chand, Director of Investment Sales at Colliers, says the strategic location means there’s a host of amenities nearby.
“Business activities along Constellation Drive are diverse, providing a range of occupiers and uses, including trade retail, bulk retail, offices, warehousing, as well as service stations and fast food outlets. A key occupier to the southern side of Constellation Drive is the Gilmours food warehouse,” Chand says.
“Albany is 4km to the north and Auckland’s CBD is 14.7km to the south meaning major centres can be reached easily.”
- Article supplied by Colliers
