A prominent and diversified investment property in the West Auckland suburb of Henderson that has been under the same ownership since it was first developed more than 60 years ago is being presented to the market for sale.
92A Railside Avenue, Henderson features two stand-alone buildings and has 1,743sq m of total net lettable area on a 3,058sq m freehold site that is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan.
The property is home to seven individual tenancies and offers prospective purchasers the opportunity to acquire an asset that occupies a highly visible position on a corner site.
Each tenancy benefits from main road exposure and many occupants have front and rear access to the site. The total annual rental income from the property is $264,140 plus GST per annum.
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The majority of the tenancies run until 2026 or 2027 and the true potential of the property lies in a future development given the underlying land value it possesses.
The property is nestled in the well-established and gentrifying commercial centre of Henderson and is surrounded by an extensive array of local amenities. Auckland’s CBD can be reached in approximately 15-20 minutes via the nearby motorway network and the Henderson train station is 450m away.
Colliers Directors Matt Prentice, Shoneet Chand, and Josh Coburn have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Tuesday 22 August, unless sold prior.
Originally constructed in the 1960s and 70s, the individual units span from 70sq m to 350sq m and house a diverse tenancy mix that includes a lunch bar, hire company, carpet store, and tyre shop, among others.
The single-level structures had their roofs replaced approximately two years ago and the property benefits from more than 80m of street frontage, providing significant exposure to passing traffic.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the split-risk nature of this purchasing opportunity will be appealing for discerning investors.
“Many of the existing tenants are on short-term rental agreements of one, two, or three years and current market estimates suggest there is considerable rental growth on offer when some of the agreements are due for review or renewal,” Prentice says.
“These functional buildings are highly serviceable for the existing occupants with good access for staff, clients, and suppliers.”
Chand, Director of Investment Sales at Colliers, says the long-term value of the property can be realised with a future development.
“It is incredibly rare to find a property like this one that has a steady rental stream as well as vast development potential,” Chand says.
“The location of the property means it could be repositioned for commercial or residential use with central Henderson on its doorstep.”
Data from Infometrics notes the wider Henderson-Massey area experienced employment growth of 4.3 per cent in 2022, compared to the nationwide figure of 3 per cent. The local area’s GDP is built on wholesale trade, manufacturing businesses, and retail trade.
There was also a 7.4 per cent increase in business units in Henderson-Massey in 2022, outpacing the national figure of 4.8 per cent, indicating the area is experiencing strong commercial growth.
Coburn, Director of Capital Markets and Site Sales at Colliers, says the zoning of the property offers considerable flexibility for any future developments.
“The Business – Metropolitan Centre Zone applies to centres located in different subregional catchments of Auckland. These centres are second only to the city centre in overall scale and intensity and act as focal points for community interaction and commercial growth and development and contain hubs serving high-frequency transport,” Coburn says.
“The zone provides for a wide range of activities including commercial, leisure, high-density residential, tourist, cultural, community, and civic services.”
- Article supplied by Colliers
