A prominent three-level office and warehouse building in the popular Auckland city fringe suburb of Eden Terrace offers prospective purchasers the opportunity to acquire a premium grade investment with a very strong tenant profile.
26-32 Virginia Avenue East, Eden Terrace offers 2,662sq m of total building area on a 1,541sq m freehold site that is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.
The property, which sits on a corner section, is home to three established tenants, OCS New Zealand, Life Plus, and Alexander & Co, who are all signed to long-term leases with a weighted average lease term of just over five years.
The total passing income is approximately $760,218 plus GST per annum (net of outgoings), while there are 53 car parks available on-site providing an attractive 35:1 office to car park ratio rarely found in the Eden Terrace area.
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The property, which is less than 2km from Auckland’s CBD, has also recently been refurbished by Cassidy Construction to appealing modern standards.
Mount Eden train station, which will be a key stop on the City Rail Link when it opens in 2024, is nearby, alongside a range of bus routes, while motorway access is available within minutes.
Colliers Brokers Jonathan Lynch, David Burley, and Gawan Bakshi have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 30 June, unless sold prior.
Originally constructed in 1998, the property has a 75 per cent NBS rating and comprises two levels of office and a ground level warehouse with associated car parking.
It offers excellent exposure to both Minnie Street and Virginia Avenue East and sits elevated with uninterrupted north, west, and eastern views, never to be built out, providing further attractive development options under both the current zoning and the proposed National Policy Statement on Urban Development Plan.
-Anchor tenant OCS New Zealand, a nationally renowned facilities management services firm, leases 961sq m of office space, the 729sq m warehouse, 34 car parks, and has naming rights for the building.
They are signed to a nine-year lease that expires in November 2028 that provides $465,000 plus GST in net annual rental income.
-Healthcare sector recruitment company Life Plus leases 550sq m of office space and 72sq m of shared space, plus 13 car parks as part of a four-year lease that expires in June 2025. They have one further right of renewal for two years and their lease provides $187,696 plus GST in net annual rental income.
-Building science specialists Alexander & Co lease the 310sq m Level 3 office and 40sq m of common share space, alongside car parks and storage lockers as part of a new three-year term that expires in July 2025.
Their lease provides $107,521 plus GST in net annual rental income, and they have two rights of renewal for one year each.
Lynch, Director of Investment Sales at Colliers, says the property presents buyers with a compelling passive investment opportunity.
“Our vendor has completed an immense transformation of this building and it is in excellent order following its recent refurbishments, providing a future owner with completely ‘stress free’ ownership. The diverse mix of established tenants will give buyers confidence with a weighted average lease term comfortably beyond City Rail Link completion,” Lynch says.
“The outlook from the building offers fantastic natural light with uninterrupted views to the Wait?kere Ranges and the CBD.”
Burley, Associate Director of Investment Sales at Colliers, says mixed-use properties remain popular in the market given the flexibility and generous height restrictions available to owners, providing future growth options.
“The Business – Mixed Use Zone is typically located around centres and along corridors served by public transport. It acts as a transition area, in terms of scale and activity,” Burley says.
“The zone provides for residential activity as well as predominantly smaller scale commercial activity that does not cumulatively affect the function, role and amenity of centres.”
Bakshi, Investment Sales Broker at Colliers, says when examining the pertinent factors in play, this property shapes as a high-quality purchasing opportunity.
“With its favourable location and excellent access to key transport links this building is a premium city fringe investment offering that will provide the new owner a sizeable rental stream,” Bakshi says.
- Article supplied by Colliers
