An outstanding standalone office and warehouse property located on the high-profile corner of Church Street and Beachcroft Avenue and directly opposite Onehunga Bay Lagoon with pedestrian access to Taumanu Bay waterfront reserve has become available to purchase for the first time in 26 years.
The prominent property for sale at 92 Beachcroft Avenue will be well-known to many due to the high levels of exposure provided by the thousands of cars passing by daily as well as being formally tenanted by Renaissance Limited, New Zealand’s sole importers and distributors of the Apple product range.
Now occupied by three well-established and recognisable tenants, providing split-risk income returns of some $522,000 per annum, the 3,727 sqm building for sale comprises three levels of well-maintained offices with an adjoining warehouse at the rear.
The property is serviced by multiple access points and benefits from the numerous links to major arterial roads, offering quick and easy motorway access to the airport, Manukau City, the eastern corridor to Penrose and other eastern suburbs as well as to the Auckland CBD from SH1 and west and north via SH20 and the Waterview Tunnel.
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There is further upside for the new owner due to the property afforded mixed-use zoning, providing long-term development potential in an area that has undergone significant transformation and gentrification in recent years.
Colliers’ Associate Director of investment sales David Burley, Industrial Director Hamish West and Onehunga specialist Gawan Bakshi are exclusively marketing the property for sale by deadline closing 4pm Wednesday 12 May, unless sold prior.
Burley says the freehold standalone property providing a high-profile split-risk income stream on mixed-use zoning with long-term development options is a real standout in Onehunga that will be extremely sought after by discerning investors.
“The property provides a steady and diversified income stream from three tenants totalling $521,946 net per annum plus GST with built-in growth throughout the remaining term.
“Occupying the property since 2014 with a final expiry date in 2030, SiteSafe occupies 890 sqm of office and a further 122 sqm of warehouse space for training purposes, and provides a combined rental return of $195,000 per annum.
“Site Safe is a national not-for-profit membership organisation that has been influential in creating a positive change in the health and safety culture of New Zealand’s construction industry since 1999. There are now over 6,200 businesses that are SiteSafe members with over 78,000 people trained each year.
“Bolstering the tenant mix is Dollar King Limited, who operate nationally with eight retail stores nationwide and deal with over 20,000 household items on a regular basis.
Dollar King have occupied 2,195 sqm of space since 2015. The current lease returns $246,000 per annum for a term of six-years with a right to renew in 2022 and a final expiry date in 2023.
“Mangere Budgeting Services Trust, which provides a wide range of innovative and quality focused financial services to families in the area was established more than 20 years ago and the Rt. Honourable Helen Clark is a Patron on the Board of Trustees. The company has leased 520 sqm of space since October 2020 providing a rental return of approximately $81,000 on a two-year lease with a further two year right of renewal and final expiry in 2024.
Industrial Director, West, says the well-positioned and highly functional building which was originally constructed in the 1960s has undergone several improvements and alterations over the years and has been well maintained, keeping a handle on future capital expenditure requirements.
“The office spaces are predominantly open plan and include light partitioning with multiple kitchens, a lift and stairway access to the tenancies from the foyer.
“The adjoining warehouse is of medium-stud industrial space with a double pitch structural steel portal frame on a ground floor concrete slab on hardfill.
“The warehouse has several full height roller doors around the periphery with adequate loading areas, and the building itself benefits from four entry points and 52 car parks on site.”
Colliers’ Onehunga specialist Bakshi says that as it is located in the middle of Auckland, within 12kms from both the CBD to the north and Auckland Airport to the south, Onehunga is popular with tenants, owner-occupiers and investors.
“Onehunga has long been considered an industry powerhouse spot to do business and is one of the most established and central suburbs in Auckland.
“The suburb proves popular due to the ease of access to SH1, its relatively short distance from the CBD, good access to the Airport via SH20, its proximity to the nearby labour pools of Penrose, Mt Wellington, Ellerslie, and Greenlane, as well as having copious amenity nearby including its own high street and train station.
“While already undergoing significant changes in recent years, there is a bright future for Onehunga as it continues to benefit from investment by Council and the private sector.
“The regeneration of Onehunga is being led by Panuku Development, which has dedicated some $140m to the project that will facilitate new residential development, further improvements to transport and infrastructure as well as development of the wharf and town centre.
“Given the property is zoned Business – Mixed Use that allows for a range of residential, commercial or accommodation uses, there is also considerable future upside up for grabs.
“The stability and split-risk income streams from the three tenants, the excellent location, the prominent nature of the property as well as the future development opportunity will be well-regarded by prospective owners, making this one of Onehunga’s finest investment opportunities, says Bakshi.”
