A large fully leased landholding on the Kāpiti Coast is for sale, with the central Paraparaumu property including a functional warehouse building divided into two tenancies and a substantial yard, with a pivotal position in an established precinct.
The property at the corner of Te Roto Drive and Manchester Street is held in three titles totalling 5,686sqm, with 1,200sqm building area plus a 3,887sqm yard. The land is zoned General Industrial, and buildings are at 70-percent new building standard.
A 1980s medium-stud warehouse, with full height windows to the corner profile is split into two tenancies. One is used as a consented retail showroom with a first-floor office area and full amenities, leased to Convert 2 Cash, an established family-owned business selling secondhand and new goods.
The second tenancy is utilised as a drive-through warehouse/workshop with roller doors to both Manchester Street and the rear yard, and is occupied by local business Banks Crane Hire which consolidated its hireage fleet operations on the site last July.
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Specialist Property Services Limited also leases yard space, while communications company 2degrees is a minor tenant on-site, leasing a small corner of yard space to for a cell tower.
The property returns net annual income of $187,927 plus GST, with the occupiers on varying lease terms, and rental growth mechanisms built in.
Mark Sherlock, Simon Butler and Johnny Curtis, Bayleys Wellington Commercial are handling the sale, with tenders closing 15th April.
As bank deposit rates drop and with other investment avenues showing some volatility, Sherlock expects the Paraparaumu property to appeal to investors looking for an affordable industrial offering in an area that is likely to continue leveraging roading connectivity improvements and population growth off the back of lifestyle benefits.
"The industrial sector has emerged from the last real estate cycle in pretty good shape. Vacancy levels across the main Wellington precincts are low, and the Kāpiti Coast follows suit.
"There's money circulating for industrial stock with scale and decent leases, and having three tenants plus a cell tower lease means risk is spread across this Te Roto Drive property.
"The wider Te Roto industrial precinct continues to attract investment, with the adjacent site currently under development by our vendors, a proactive Paraparaumu-based property investment company."
Sherlock says the property has easy access to the Kāpiti Expressway for links north and south, and this, along with the size of the site, underpins the long-term value equation of the subject property.
"It's a great investment, with the true value lying in the scale of the landholding, with future development potential to be unlocked given the zoning and location.
"Large flat sites are always sought-after, and having two street frontages thanks to the corner position only amplifies its appeal."
- Supplied by Bayleys
