Barfoot's team fields 'First 16' portfolio

By Colin Taylor, article courtesy of NZ Herald

Barfoot & Thompson Commercial has kicked off the new year with the release of its First 16 portfolio comprising a variety of industrial, office and retail properties in the Auckland region.

Peter Churchill, commercial operations manager for the agency, says the properties are also being offered to the market via different methods.

"They include six for auction, six for sale by tender, three to be sold by deadline private treaty and one for sale by negotiation," Churchill says. "They also come from a diversity of locations including Pukekohe, East Tamaki, Henderson, Riverhead and central Auckland. "Churchill says the demand for commercial property investments still remains very strong going into 2016.

"Owner operators are attracted to owning the premises they occupy because funding costs are currently so low that it’s more cost effective to pay a mortgage than to pay rent. Similarly traditional investors, like high net worth individuals and family trusts, are attracted to the yields generated by these properties, which are typically better than the returns from the banking sector."

Two-level commercial office, Pukekohe

South of Auckland, Tainui Development Ltd is selling a two level commercial office building at 7-9 Tobin St in the commercial centre of Pukekohe.

"Our instructions from the vendor are clear that this property will be sold," says Churchill who, with commercial agent, Jason Woodyard, is selling it by tender closing at 4 pm on Wednesday, February 17, at 68 King St, Pukekohe, unless it sells earlier by negotiation.

"This superbly located building was erected in the mid 1980s and is leased primarily to a Government tenant on two leases generating passing annual rent of $306,012," Churchill says. "The leases are gross leases that have been recently renewed for three years and are currently under review."

The ground floor of 631.83 sq m is leased to the Ministry of Social Development along with 815.14 sq m of the first floor. A ground floor area of 183.56 sq m is vacant.

Peter Churchill, Barfoot & Thompson Commercial Manager
Peter Churchill, Barfoot & Thompson Commercial

Grade-A structure

Woodyard says the building has a total area of 1630.53 sq m and occupies a freehold rectangular site of 1915 sq m in two lots of basically flat land. The first lot has a frontage to Tobin St of about 32 metres and a depth of 38.15 metres. The second lot encompasses a car park area on the western side of the site which extends to the Seddon St roundabout and has a frontage to Tobin St of circa 43 metres and a depth of 9.9 metres. There are nine on-site car parks plus rights to 38 spaces at the rear.

"A central glazed atrium lobby is a feature of the building," Woodyard says. "It serves as the main access for the public and tenants, and has extensive glazing around its perimeter that provides excellent natural light.

"Building services include air conditioning, a single lift, a stairwell, security access card system for the tenancies and building perimeter, heat detectors throughout and men’s and women's toilets on each level."

Woodyard says an independent report assesses the property at 108 per cent of National Building Standards (NBS). "This is a Grade-A structure that is not earthquake prone."

Overall construction is of concrete foundations and floors, with concrete column and beam walls and extensive glazing. Internal walls are plasterboard with aluminium joinery and the roof is Longrun steel.

"Located on the northern side of Tobin Street, to the east of the Tobin and Seddon St roundabout, the property is on the Pukekohe ring road network, and is exposed to some of the highest traffic counts in Pukekohe," Woodyard says. "It is opposite a large Countdown supermarket and is a short walk to the city hub and King St – the main street of Pukekohe."

Designated 'Business Zone' under the Auckland Council's Operative District Plan, the site is zoned Mixed Use under the Proposed Auckland Unitary Plan (PAUP).

Jason Woodyard, Barfoot & Thompson Commercial
Jason Woodyard, Barfoot & Thompson Commercial

155 Queen Street, 802 sq m

In Auckland City's main street, a retail street-level floor is for sale at 155 Queen St at the intersection with Wyndham St.   

"Almost opposite Vulcan Lane with its entrance from Wyndham St, this is a hot property with major upside potential," says commercial agent Rohan Cook who, with colleague Dickie Nam, is marketing the property for sale by auction at 10.30 am on Thursday, February 18.

Cook says the large floor area of 802 sq m is divided into three retail spaces leased to NZ Post and Kiwibank. The property comes with three car parks.

Solid, hands-free investment in Albany

Across the Harbour Bridge another retail property at 15E Mercari Way, Albany, is for sale at the same February 18 auction.

"This is a safe, solid, hands-free investment," says commercial agent Nick Brown who is marketing the 116 sq m retail unit.

"Located, a stone’s throw from Westfield Albany, it has a new six plus six-year lease to MiUGG (a stockist of UGG Australia apparel) - and earns $52,000 per annum," Brown says. "Guaranteed rental growth compounding yearly will be attractive to prospective purchasers," he says. Rent reviews are a combination of the annual Consumer Price Index plus 2 per cent and to market rates.

Brown says the established complex in which the unit is located was built in 2000 and has housed well-known retail brands like Nike, Servilles, ANZ, TAB, Subway and Shoe Science.

"It benefits from a great profile, plentiful parking and dual access to Mercari Way and Don McKinnon Drive which is also home to Westfield Albany and the Mega Centre. There has been a shortage of good investments properties in an affordable price bracket, so demand for this unit is expected to be very strong," Brown says.

Commercial property for sale - 155 Queen St Auckland CBD
155 Queen St, Auckland CBD

East Tamaki standalone warehouse and office

Also going under the hammer at 10.30 am on February 18 at Barfoot & Thompson’s auction room at 34 Shortland St is a standalone 1980s warehouse and office building in East Tamaki.

"This industrial property at 8 Andromeda Way benefits from an excellent location, ease of access, good security and loading facilities," says commercial-industrial agent Paul Vermaak who is marketing the freehold offering occupying 2312 sq m of level land on one title.

Vermaak says the building with a total area of about 1577 sq m is a functional warehouse with ancillary offices and amenities.

"The current tenancy terminates on April 30 when it will be available for occupation by an owner-occupier or new tenant," he says.

The building encompasses 402.36 sq m of double storey offices, storage and amenities, and an 1174.57 sq m warehouse with central supporting steel columns and a 5.9 metre stud at the knee. A cart dock loads directly on to Andromeda Crescent, with a second roller shutter at the rear. There is also a canopy of 27.93 sq m.

"It is well located close to Highbrook with banks, cafes, gym and other shopping nearby," Vermaak says.

Parking is provided in front of the offices, as well as on the rest of the rectangular site which has a frontage to Andromeda Crescent of 32.75 metres and an average depth of 71 metres.

It is zoned Business 5 under the operative Auckland Council District Plan and Business - Light Industry under the PAUP.

Commercial Property for Sale -  8 Andromeda Way, East Tamaki
8 Andromeda Way, East Tamaki

Showroom and office in Papatoetoe

Another property for auction Barfoot & Thompson’s Shortland St office, on Thursday February 18at 10.30 am is a warehouse, showroom and office building in 28E Lambie Drive, Papatoetoe.

Jesh Jaskiewicz who is marketing it with colleague David Mayson says the freehold commercial property in stratum is fully leased with the 440 sq m medium stud warehouse and showroom on the ground level and a 127 sq m office on level one.

The circa 1980s’ building with a total area of 567 sq m earns $62,200 per annum plus GST and comes with 11 car parks.

Jaskiewicz says importer and specialist tool supplier Grossman Twigg has been a tenant since 2006 and pays $48,000 per annum for the showroom and warehouse on a lease that expires in August 2018.

The Manukau branch of Squirrel Mortgage Brokers pays $17,200 annually for the first floor office on a three year lease that expires in July 2017.

Mayson says the 1980s’ concrete block building is located in the vicinity of the Manukau Westfield shopping mall, Manukau Mega Mitre 10, Manukau Supa Centre, a Bunnings and Event Cinemas.

"Lambie Drive is off Cavendish Drive, which is one of the busiest arterial routes in Manukau City, and the property has easy access to both the north and south-bound lanes of State Highway One and to west-bound State Highway 20. It is also close to regular rail and bus services."

Mayson says the area will benefit from significant transport, commercial and residential infrastructure projects currently underway in and around Manukau City.

Standalone warehouse in Penrose

Also featuring at the February 18 auction is a standalone warehouse at 367 Church Street, Penrose, marketed by Brennan Wyllie and James Marshall.

"This property has add-value potential refurbishment upsides and is the ideal acquisition for an owner operator or investor with a tenant in mind," Wyllie says. The 590 sq m warehouse occupies a freehold site of 817 sq m and is located in a popular business district.

Marshall says the versatile building has good parking and would particularly suit an owner occupier automotive related business.

About Barfoot & Thompson Commercial

Barfoot & Thompson Commercial offer expertise in industrial and retail sales and leasing, property management and portfolio management.