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Big East Tamaki corner site offers add value opportunity

Tags: Commercial

A large site in a high profile corner position on one of East Tamaki’s busiest roads is up for sale with long standing tenant Carters Building Supplies in the latter stages of a 15-year lease.

Located at 91 Harris Rd, on the corner with Greenmount Drive, the property encompasses 8,094 sq m of freehold land with substantial frontage to both roads, two warehouse/showroom buildings totalling 2,827 sq m and a substantial yard.

“It is not often that such a large and prominent site comes up for sale in East Tamaki where properties of this scale are very tightly held,” says Bayleys’ national industrial & logistics director Scott Campbell. He is handling the sale with Dave Stanley and James Hill.

Featured in Bayleys’ latest Total Property portfolio, the offering is up for tender closing 4pm, September 19, unless sold prior.

“It’s a property that has huge potential and provides longer term add value and development opportunities given its strategic, corner position, with multiple access points, in one of Auckland’s most sought after industrial locations,” Campbell says.

In the meantime, Carters’ lease which commenced in 2005 runs until April 2022, with one three-year right of renewal. The national company, which recently celebrated its 150th anniversary and focuses on supplying the building trade, uses the property for the display and sale of a wide range of building products.

James Hill says there are two buildings on the site. The main 2022 sq m warehouse and showroom premises, on the corner of Harris Rd and Greenmount Drive, accommodates the main retail area along with administrative offices and a products storage warehouse.

“This warehouse has a functional clear span layout with a basic despatch area and multiple roller doors, providing excellent flow to and from Greenmount Drive which is the main point of entry for trucks and across to a smaller rear warehouse on the western boundary at the rear of the site,” says Hill. “This was built at a later date and provides 805 sq m of clear span warehousing with an approximate stud height of 7m, also with multiple roller door access.”

Between the two buildings is a wide access area which leads to a 2,986 sq m fenced yard fronting Harris Rd. Also fronting onto Harris Rd, with access from both roads, is a customer parking area with 30 spaces for vehicles.

The property is currently generating net annual rental income of approximately $322,000 plus GST. “The next market rent review is in April next year and the new owner would be able to put forward a strong case for a rental increase at this review based on a comparison with similar properties in this location which has been experiencing a good level of rental growth in recent times,” says Campbell.

Dave Stanley says the dual carriageway Harris Rd has become a major arterial route in East Tamaki running from nearby Ti Rakau Drive to East Tamaki Rd and Otara. Greenmount Drive is a loop road which also connects with Ti Rakau Drive.

Stanley says the property’s standalone, split buildings, multiple roller doors with large canopies totalling 484 sq m and extensive yard space increases its appeal for future redevelopment with a possible subdivision into smaller tenancies enabling a higher rental return to be achieved.

“The site’s Business – Heavy Industry zoning also increases the range of tenancies that could be targeted for the site.”

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