Multi-use office/warehouse property comes up for sale

Range of options in the mix as large multi-use office/warehouse property comes up for sale

A large multi-use office/warehouse property which also sustains a foodservice production kitchen has been placed on the market for sale.

The freehold land and buildings at 50 Lovegrove Crescent, in a light-industrial precinct in Otara, Auckland, are being offered for sale with either flexible leaseback terms or vacant possession.

The multi-use property at Lovegrove Crescent comprises both warehouse and office configurations and a commercial kitchen facility – offering up a wide range of future-use options for investors, owner-occupiers or developers.

The property is currently owned and occupied by the Attainable Trust, a charitable trust providing support services and employment opportunities for people with disabilities.

Since late 2018 the Attainable Trust charity has operated the premises as a commercial kitchen – supplying ready-made meals and foodservice operations for restaurants, corporate businesses, nursing homes and event organisers.

Additionally, the site serves as a factory from which the trust provides contract packaging and product assembly plus a shipping-container loading and unloading warehouse service.

The Attainable Trust is open to entering discussions with potential purchasers on suitable lease terms – including negotiating the area it would continue to occupy.

Proposed tenancy terms are for a four-year lease of about 2,000 square metres - roughly 40 percent of the building - through to 2024, generating net rental income of $200,000 plus GST per annum. Two further four-year rights of renewal are proposed, extending to 2032.

The lease would be subject to a market review at the first renewal, with two percent annual rental increases coming into effect in each of the following years.

The property at 50 Lovegrove Crescent is being jointly marketed for sale by Bayleys Manukau and CBRE. Bayleys salespeople Nelson Raines and Nick Bayley said the property comprised a mix of warehouse space, offices/amenities and factory areas totaling 4,936-square metres over two levels, on 8,473 square metres of freehold land. The property supported more than 80 on-site car parks.

Mr Raines said the building’s diverse configurations and uses made this a versatile property with wide-ranging future options.

“The office accommodation is located over two levels towards the building’s northern and western elevations. This area comprises of offices, amenities and a commercial kitchen facility,” Mr Raines said.

“The main factory/workshop is a large rectangular space with excellent natural light and access from a roller door on the northern end of the building. It has a clear span and a stud of 7.3 metres at apex, along with a gas connection and three-phase power.”

All site boundaries were protected with security fencing, Mr Raines said.

The property was zoned Business – Light Industry, which allowed for activities including manufacturing, production, logistics, storage, transport and distribution.

Mr Bayley said the sizeable land and building offering, in combination with the broad possibilities for future uses, leasing arrangements or redevelopment, meant the Lovegrove Crescent property would be of interest to owner-occupiers, developers and investors.

“Promising multi-use sites such as this are becoming increasingly scarce due to the continuing growth in demand for land in South Auckland.

“This property also enjoys some strong locational advantages. Situated less than a kilometre from the Southern Motorway’s East Tamaki Road offramp, it has accessible road frontage and efficient access to the motorway networks, while also being less than five kilometres from the established industrial hub of Highbrook Business Park,” Mr Bayley said.

“Taken in combination, these factors make this a cost-effective, user-friendly commercial location housing a property which is well-positioned for evolving future opportunities.”

Located on the south-eastern side of Lovegrove Crescent on a site directly overlooking Otara Creek Reserve to the east, the property’s neighbours included a number of small light-industrial premises and outlet stores.

Mr Bayley said the building had an Initial Evaluation Procedure rating of ninety percent of new building standards.

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