Prime position in Onehunga

A multi-tenanted property on a high-profile corner site in the popular industrial hub of Onehunga in Auckland is being offered to the market for sale.

282-286 Church Street, Onehunga has 3,649sq m of total net lettable area spread across three separate unit titles. The property sits on a 4,998sq m landholding and is zoned Business – Light Industry Zone under the Auckland Unitary Plan.

Units B and C span 3,217sq m of floor area and are leased by the Tile Warehouse.

GT Auto Source leases the 432sq m Unit A, which sits directly below Unit B. Their current lease runs until 30 June 2027 and there is one further right of renewal for four years leading to a final expiry of 30 June 2031.

There are also fixed annual increases of 2.5 per cent every July and a market rental review on renewal. Their lease includes a six-month termination option that is exercisable by the tenant.

This property greatly benefits from its strategic position on Church Street, a main arterial route that connects the established industrial suburbs of Penrose, Onehunga, and Mount Wellington and provides connectivity to the motorway network through nearby on-ramps.

Colliers Directors Ben Cockram, Hamish West, and James Dickey have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 13 November, unless sold prior.

Unit B and Unit C have two warehouse areas that span 2,182sq m in total and are separated by a concrete block firewall, which currently has internal access via a penetration in the blockwork and small ramp.

The warehouse has six full height roller doors, four of which are accessed via Furley Place and two via Henderson Place. Stud heights in the warehouse are approximately 5.5m rising to 7m. These units each have their own functional office blocks that are spread over two levels and their own showrooms.

Unit A has 327sq m of warehouse area and a 105sq m office and showroom while there is a sealed and secure forecourt at the front of the tenancy.

Cockram, Director of Industrial at Colliers, says there are multiple options available to buyers depending on their vision for the property.

“Owner-occupiers can acquire this asset for their own operations given Units B and C could be vacant following the conclusion of the lease term for the main tenancy and then enjoy the supplementary income from the tenant in Unit A. The holding income that is in place will allow future occupants to strategically plan their moves before taking possession,” Cockram says.

“Astute investors looking at the property could negotiate a new lease agreement with Tile Warehouse or they will likely have many interested prospective occupiers if they choose to seek new tenants as there is the potential to split Units B and C into separate tenancies.

“There may also be an opportunity to add value through a development or repositioning of the property.”

West, Director of Industrial at Colliers, says the wider Onehunga and Penrose industrial area is a tightly held location that is keenly sought by prospective purchasers.

“The latest research from Colliers notes there is next to no prime industrial floorspace available in the Onehunga and Penrose precinct,” West says.

“The overall industrial vacancy rate across the wider Auckland region is only 1.75 per cent indicating industrial assets remain in demand among landlords and tenants.”

Dickey, Associate Director of Industrial at Colliers, says when weighing all of the pertinent factors, this property shapes as a compelling purchasing opportunity.

“This is an asset that is prominently positioned in a key industrial location in Auckland and offers considerable long-term upside,” Dickey says.

“We encourage all interested parties to make contact with us.”

- Supplied by Colliers