Multi-tenanted site with many advantages

The multi-tenanted South Auckland property anchored by a busy self-service laundromat is for sale, awash with diversified growing income and future development upside.

The nearly 1,100-square-metre site on Atkinson Avenue, Otahuhu, contains four tenancies in a building of some 525 square metres, plus 10 on-site car parks. It is fully leased to a laundromat, an artificial grass provider, and an automotive service company.

The leases generate a combined net return of $132,714 plus outgoings and GST per annum, with built-in rental growth.

Seven-day-a-week laundromat The Wash Tub trades from the front two tenancies, spanning a combined 285 square metres (approximately), on current leases that run to 2030 with rights of renewal extending to 2040.

Team Turf, a leading supplier of artificial surfaces for sports, playgrounds and landscaping, occupies premises of some 120 square metres on a lease that runs to 2028.

The fourth, approximately 120-square-metre tenancy is leased to Car Care Clinic. This lease runs to 2028 with a further two-year right of renewal.

Intensive mixed-use zoning supports future possibilities for multistorey redevelopment.

The freehold land and buildings at 35 Atkinson Avenue are being offered for sale by deadline private treaty closing on Tuesday 9 June (unless sold prior).

The sale is being marketed by top selling agents James Were and Matt Dell of Bayleys Real Estate.

Were said the site represented a passive investment with solid fundamentals and clear upside.

“Buyers have the chance to secure a versatile property with split-risk income and an established anchor tenant.

“It also comes with rental growth and flexible, intensive zoning that supports future residential or commercial development in an area that has seen numerous successful projects,” said Were.

The existing refurbished 1970s industrial building has an Initial Evaluation Procedure seismic rating of 70 percent of new building standard. It features retail premises fronting Atkinson Avenue, plus three warehouse tenancies, each with roller-door access, to the rear. Each of the premises has its own amenities.

Business – Mixed Use zoning under Auckland’s unitary plan permits wide-ranging commercial and residential uses and construction to a height of 21 metres at the site, which is higher than typical for the zone.

Dell said development potential was further underpinned by the freehold land’s flat contour and more than 20 metres of frontage to Atkinson Avenue.

“Well-presented and strategically located, this multi-tenanted asset offers dual benefits of immediate income and long-term upside in the heart of Otahuhu. The location places occupiers in the midst of a thriving local community, surrounded by a blend of commercial and industrial businesses.

“Handy to key arterials and the Southern Motorway, it offers excellent connections to key hubs such as East Tamaki, Mt Wellington and Manukau, as well as Auckland’s city centre and airport.

“The area is also very well served by public transport, including Otahuhu’s $28 million bus-train interchange,” Dell said.