A tenanted commercial premises in a thriving city-fringe design precinct features strong underlying fundamentals for investors seeking a hands-off investment.
The versatile 852sqm (more or less) showroom and warehouse at 31A Normanby Road is in prime position on the corner of a popular business park, less than two kilometres to downtown Auckland and key motorway links.
Bayleys Auckland City & Fringe associate director James Were says the property’s high-profile location with exposure to traffic passing along the eastern side of Normanby Road provides a natural pedigree, particularly as the area continues its rapid transition from suburban to high-density.
“New apartment developments currently underway in the immediate area will join recently completed high-quality projects, including Eden Green, Botanica and the Botanica Heritage apartments, contributing to a strong residential catchment.
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“In addition, the area has an established reputation as a design precinct, with local businesses including Webb’s auction house, Citta Design at the BLOC retail community, ECC Lighting and Simon James Design, all proving to be attractive neighbours for like-minded operators.
“Customers travel from across the city to visit these leading brands, which include the tenant – Artisan Flooring Limited. It is an area which continues to be in perennial demand given its proximity to the CBD, Newmarket and access to motorways and new light rail,” Were says.
Were is marketing the Normanby Road premises for sale with colleague Phil Haydock.
The property is offered for sale by tender closing at 4:00 pm on Tuesday 4th, April 2023 (unless sold prior).
Comprising a functional mix of high-stud warehousing accessible via a full-height roller door, the property occupies a road-front corner position in a popular business park.
“The unit presents exceptionally well with full-height glass frontage, stone flooring and black steel finishings,” says Haydock, Bayleys Auckland City & Fringe associate director.
“The front showroom spans 193sqm, while a rear showroom of 313sqm provides ample storage opportunity, in addition to 207sqm of first-floor office accommodation and a sizeable mezzanine.
“The property benefits from the use of 20 exclusive car parks, making it a desirable option for both showroom and office occupants,” Haydock says.
The premises is occupied by luxury flooring and interior finishes market Artisan Flooring which has a seven-year lease to January 2030 and two three-year renewal rights.
The lease generates a yearly net rent of $310,619 plus outgoings and GST with two percent fixed annual rental growth and features a six-month bank guarantee.
“The tenant is an established brand, in business for more than 40 years, with three showrooms across New Zealand, which will provide investors with confidence that their asset is being utilised by a heavily entrenched occupant with strong credentials.”
“In addition, the long lease agreement and fixed annual rental growth ensure peace of mind at a time of recent volatility for the retail sector.”
Were says in addition to its impressive features and position in a sought-after location; the property is near Mt Eden Train Station, which forms an integral part of Auckland’s new $4.4 billion City Rail Link (CRL) network.
The CRL is the most significant transport infrastructure investment ever undertaken in New Zealand, comprising a 3.45 kilometre twin tunnel underground rail link which will provide rapid transport from the redeveloped Maungawhau/Mount Eden Station to the CBD.
“The CRL will greatly boost rail passenger capacity and connections with the CBD across the region by extending from downtown Auckland up to the western line through Newton and Eden Terrace to the new Mount Eden Station,” Mr Were says.
“Historical data suggests proximity to transport options provides value uplift for surrounding properties, and we expect the location of this unit, near such a major light rail interchange – game-changing for the face of transportation in Auckland – has the potential to collect further value gains upon completion of the CRL scheduled for 2024.”
- Article supplied by Bayleys
