Two established tenants and favourable zoning for future development options underpin the value of a split-risk industrial investment property in Pakuranga that is now for sale.
The 4,047sqm flat freehold site at 13-15 Ben Lomond Crescent in Pakuranga Heights is zoned Business-Light Industry and lies within a proven industrial area that services and supports a large residential and business catchment which includes Pakuranga, Howick, and Botany.
There are two mirror image warehouse buildings totalling 2,510sqm separated by a central driveway that leads through to rear sealed yard areas.
The warehouses have dual roller door access and good upper-level office space to the road frontage, with each tenancy having 22 associated car parks.
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Signature Rugs Limited has a recently renewed four-year lease, while Howick Gymnastics Club Limited has renewed for a further four-year term beginning 1 February 2025.
The property returns total annual net rental income of $357,733 plus GST, and both leases include mechanisms for annual rental increases.
Tim Bull, Tom Doyle and James Hill of Bayleys South Auckland are marketing the property via deadline private treaty closing 5 December, unless sold prior.
Bull says with the vendor having undertaken capital upgrades, including new roofing on both buildings, the property represents a solid passive investment offering in an area where stock seldom comes to the open market.
"It's one of those niche light industrial precincts where there s minimal turnover of property, and occupiers tend to commit to long-term tenancies.
"This location works brilliantly for the two long-standing tenant businesses, with the gymnastics club on-site since 2009, and both having invested in fitout to suit their operations. They're also low impact occupiers, with minimal wear and tear on the property.
"Signature Rugs is well-set up for showroom and distribution space for their imported rugs and home decor business, with the warehouse an approved transitional facility for container devanning, while Howick Gymnastics Club uses its warehouse space as a gymnasium, supported by office and boardroom areas."
Given the site's zoning, Doyle says the large rear yard and ample parking zones offer opportunity for enhanced amenities or future development, which would add further long-term value to this investment.
"It's a decent-sized landholding and the buildings have been well maintained but the scale of the site and the rear yard presents scope to expand the existing buildings at some stage.
"Freehold sites of this size with passive, split-risk profile and strong existing returns are not often available for sale and we expect robust interest from investors looking to get a foothold in the precinct."
Ben Lomond Crescent is a well-connected location, with Hill saying there's streamlined access to main arterials with Pakuranga Road to the north, and Ti Rakau Drive to the south.
"As such, the area suits a wide range of occupiers with the general vicinity having live/work offerings, manufacturing, distribution, trade wholesale, storage and automotive businesses.
"This is a well-functioning and proven precinct and the subject property represents one of the better hands-off investment opportunities we've seen in a while in East Auckland."
- Supplied by Bayleys
