An industrial property occupied by two auto businesses in the heart of Kumeu’s commercial district, a key growth node for the Auckland region, has been placed on the market for sale.
The corner site on 2,044sq m (more or less) of freehold land zoned Business – Mixed Use at 65 Main Road occupies a prime location within the high-growth area.
It is experiencing a transition from predominantly rural to urban use as Auckland’s built environment expands to meet population demand.
Bayleys salesperson Tony Chaudhary says the property is being offered to the market for the first time in 28 years and presents a rewarding opportunity to maximise a high-profile premises earmarked for future growth.
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“Auckland’s entire northwest region has experienced a sustained period of significant redevelopment as the city expands its urban boundaries into areas previously used for farming and horticulture.
“This has seen underlying zoning changed to residential, commercial and industrial use to provide for urban growth, with up-zoning having a lifting effect for values on properties with greater scope for intensification.”
Chaudhary is marketing the Main Road property for sale with Bayleys Northwest salesperson Matt Clifford by deadline private treaty, closing at 2pm, Thursday, 22 September.
The property generates annual net rent of $180,407 plus GST and outgoings with built-in rental growth from two of the three tenancies.
There are two tenanted ground floor workshops and a vacant first-floor office total 982sqm (more or less) on one freehold title, with 25 unallocated vehicle parking spaces.
A 192sqm ground floor tenancy comprises 152sqm of workshop accommodation, 20sqm of offices and amenities, plus 20sqm mezzanine/lunchroom (more or less) occupied by long-standing tenant Kumeu Tyres.
Kumeu Tyres has been in occupation for 28 years and has a current lease term of six years to August 2023 with one further six-year right of renewal.
The larger workshop occupied by Auto Super Shoppe Kumeu (previously Cottle Motors) comprises 619 sq m split across 138sq m of showroom/office accommodation, 408sq m workshop and 73sqm (more or less) mezzanine storage/amenities.
Local mechanic Auto Super Shoppe Kumeu has a new six-year lease to March 2028 with two further three-year renewal rights.
The first-floor tenancy provides 171sqm (more or less) of office accommodation and at settlement will be leased back to the vendor for a 12-month term for $33,000 net pa plus GST and outgoings.
The premises, on the corner of Access Road, features air-conditioned offices with security systems, skylights, concrete flooring and a concrete courtyard plus workshop access via four electric roller doors.
“Originally purchased and developed by the seller back in 1994 as he established his Cottle Motors business, the property occupies arguably the most prominent spot within the Kumeu-Huapai commercial district,” Chaudhary says.
“Located within one of the most tightly held industrial areas across the region, the property presents a split-risk investment for an investor to maximise current returns from long-standing, established tenants.
“Each business provides a diversified income stream with functional configurations in a low-vacancy area which offers investors peace of mind should they need to lease tenancies in the future.
“The region has experienced a huge shift in zone permissions and land use under the Auckland Unitary Plan.
"The site benefits from proximity to neighbouring national brand tenancies, which serve a growing residential catchment, with access to main arterial routes and motorway networks.”
Bayleys salesperson Matt Clifford says up-zoning across Kumeu-Huapai has seen the successful development of multi-unit residential accommodation in combination with commercial activities.
This continues to position the northwest corridor as one of Auckland’s most important growth areas benefitting from significant infrastructural upgrades.
- Article supplied by Bayleys
