Skip Ribbon Commands
Skip to main content

News Release

Auckland

Tenanted Grey Lynn industrial investment

JLL marketing 30A Pollen Street, Grey Lynn


 

 

East Tamaki gem with new five-year lease/new-zealand/en-gb/news/863/east-tamaki-gem-with-new-five-year-leaseAucklandEast Tamaki gem with new five-year lease
Rare vacant land in Grey Lynn for sale/new-zealand/en-gb/news/861/rare-vacant-land-in-grey-lynn-for-saleAucklandRare vacant land in Grey Lynn for sale

30 Pollen St 01 small-min.jpgJLL agents Alex Wefers and Jarred Hill are marketing a tenanted, freehold industrial unit in popular Grey Lynn.​

Built in late 80s, the 377sqm unit has four carparks and an NBS of 90%. It is currently tenanted by a mechanic who has been business for nearly 20 years, 12 of which he has spent at 30A Pollen Street. 

The unit is located on the ground floor of 30 Pollen Street, a three level building, which is divided into four unit titles with two commercial units, one being this unit located on the ground floor, another commercial unit on the first floor and two residential units on the second floor. The car parking is located in the basement of the property.

Zoned mixed use, the property has a height variation of 27 metres, which will allow for higher density in the future. 

The unit comprises of an office, kitchen bathroom and workshop, with the majority of the unit being the workshop and largely open plan. Access is obtained via a pedestrian door or through a roller door at the southern end of the front elevation. The property has concrete floors and walls and an exposed ceiling with suspended fluorescent light fittings. 

“This type of investment is a fantastic find, with industrial properties being few and far between in a premium inner city suburb such as Grey Lynn. The NBS being so high shows the property is structurally sound and this is also really positive when it comes to bank lending,” says Wefers. 

The property currently returns $68,000 net pa and market rent reviews take place every two years. The current lease term is eight years, with six years remaining, which expires in October 2023. 

Wefers explains, “The property has immediate upside, with the next market rent review, due to take place in October 2017. This gives the new owner the immediate chance to assess the market rental and negotiate a new rental figure. The lease also provides personal guarantees from experienced business owners to de-risk this investment for the buyer.” 

“If you consider the circumstances of the existing tenant, he has been at this location over a decade, so he has invested a significant amount in this location, building up his client base and a name for his business in the area. This is a solid offering and a great investment for the right buyer,” says Hill.

“We sold a similar property not long ago and interest was very high. We expect this property will also draw a lot of interest from the investor community given the long term security this property offers. There is also a lot of development going on in the nearby vicinity at the moment, which adds to the appeal of the property.” 

Being in such a prime area of Auckland, the property will benefit from the nearby Countdown supermarket, which is part of the Cider development, home to Fairfax Media and other businesses, along with 11 shops. 

Another development close by is the mixed-use development Vinegar Lane, which is planned to include retail, offices and housing. 

Across the road at 23 Pollen Street is the newly opened Pollen Street Apartments and only two doors up at 22 Pollen Street, is an office development which is currently under construction. This development is expected to house a number of businesses over a 4000sqm space. 

30A Pollen Street is a short walk to Ponsonby Road and shopping area and is within close distance to Grey Lynn village. The property accessed from both Williamson Avenue and Great North Road and is close to Spaghetti junction motorway access to the west, north and south. Being in such a busy, popular area it is also conveniently located to public transport links.



JLL Associate Director of Research and Consulting, Tom Barclay says, “Auckland City industrial markets, rising rents and positive net absorption indicate strong occupier demand for city industrial space. This has been supported by the underlying strength of economy, and the high performance manufacturing sector, which has translated to expansion plans for a number of occupiers. Vacancy rates are very tight at 3.5%, well below the post GFC average of 4.8%. Supply is increasing to meet demand although the majority of development is focused around the Penrose and Mt Wellington areas, making industrial units like this one a rare commodity.”

The property is being sold by expressions of interest closing 4pm Thursday 26 October, 2017, (unless sold prior).

Read the NZ Herald story here​.