A modern, dual-tenanted property in East Auckland’s thriving industrial heartland is now available for sale, presenting a compelling investment opportunity for passive purchasers seeking a strategically positioned asset with a diverse income stream.
Bayleys South Auckland Commercial and Industrial director Sunil Bhana and colleague James Hill are marketing the 8,190sqm (more or less) landholding on a corner site at 321 Ti Rākau Drive for sale by deadline, closing at 4:00 pm on Wednesday, 4th December 2024 (unless sold prior).
Bhana says the fully tenanted property benefits from wide frontage to Ti Rākau Drive, offering prominent exposure along one of Southeast Auckland’s key arterials with an estimated daily traffic count of circa 20,000 vehicles.
“Significant ongoing investment in local infrastructure is enhancing the connectivity of this highly-trafficked location – making it even more appealing for businesses and investors with an eye on future growth prospects.
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“The Business – Light Industry zoned property is located on the principal route linking Pakuranga to the west with the Botany Town Centre and thriving commercial precinct at East Tāmaki – where key projects under construction, including the Pakuranga to Ti Rākau Drive Bridge and the Rā Hihi flyover stand to significantly improve transport links, contributing to the region’s growth and further solidifying its status as a critical commercial hub.
“It benefits further from designation within an identified Growth Corridor, which, under Auckland Unitary Plan provisions, offers additional opportunities for large-format retail activities.”
Following substantial tenant and landlord investment and upgrades, the modern building of 3,029sqm (more or less) features expansive showroom areas and office facilities supported by road-front parking and additional parking lots to the rear of the site.
Bayleys South Auckland Commercial and Industrial director James Hill says the split risk nature of the asset, anchored by two established tenants, allows investors to benefit from annual rental growth, with review mechanisms in place providing attractive appreciation prospects.
“The fully leased property generates a substantial net income of $829,915 pa. Anchor tenant Sydney Tools – a leading trade tool retailer with approximately 90 stores across Australia and expanding into New Zealand – holds a lease through to December 2030, with renewal options extending to 2044.
“Boat dealer Auckland Marine Centre occupies the balance of the property with a long lease to 2030 and two further renewal rights of 10 years each. This dual tenancy structure is a significant advantage for passive investors, as it provides a reliable long-term income, mitigating vacancy risk and ensuring a consistent and valuable return.”
The primary building is supported by three additional parking lots totalling 576sqm at the rear of the site. Hill says these facilities enhance the property’s appeal, providing ample space for tenants and customers – essential to foster operational efficiency in such a high-traffic area.
“The property is surrounded by major brands such as Bunnings Warehouse, Turners Cars, and the Botany Town Centre, with more than 200 stores spread across three complexes. This diverse ecosystem offers tenants and investors the advantage of being part of a bustling commercial hub that caters to a wide range of consumer needs.
“The property is ideally situated in today’s market, offering investment appeal via immediate cashflow, solid tenant covenants and significant long-term growth potential. With outstanding visibility along a vital transport corridor, we anticipate strong interest from investors eager to capitalise on the advantages of this vibrant landscape – characterised by ongoing development and an expanding retail base poised to drive demand and elevate property values in the years ahead.”
- Supplied by Bayleys
