A high profile “trophy” industrial property on the North Shore’s popular Apollo Drive is being offered for sale by auction.
It is being is jointly marketed by Andrew Bruce and Rob Meister of NAI Harcourts and Derek Wallwork from Omega Commercial, who say it is one of the few large, high quality investments available in the area.
34 Apollo Drive, Rosedale is a substantial industrial property on a 5,160m² site with a building floor area of 2,971m² and 54 car parking spaces. Enjoying a prominent road-front position it is partitioned into three areas, with three separate tenancies.
RPM International Tool & Die Limited, New Zealand’s largest privately owned and operated tool and die manufacturer, has two tenancies within the property. RPM International Tool and Die has occupied the majority of the building since it was built. It was designed by leading architect Terry Randall of Design Architectural Limited under instructions from RPM and constructed for their own use in 2005.
The current RPM lease commenced in December 2010 and is for a five year and nine month term. There are two rights of renewal of three years each, with the final expiry on 31 August 2022. This tenancy occupies 72% of the total premises, comprised of 563m² office and amenities space, 324m² mezzanine, warehouse office and low stud workshop floor area, and 880m² of main warehouse space. There are also 48 car parking spaces. Net rent is $275,000 per annum plus GST.
The second RPM International Tool & Die tenancy is for an additional warehouse area leased on a separate agreement with expiry timed to coincide with the main lease. The warehouse is 482m² and the tenancy includes an additional five car parking spaces, for a net rent of $50,000 plus GST per annum.
The third tenancy is currently held by Visitec (NZ) Limited, however a new lease has been signed with Hydroflow Distributors Limited and takes effect on 1 July 2014. Hydroflow Distributors specialise in servicing pump shops and milking machine companies. The tenancy is for four years plus one right of renewal for a further four years, with a final expiration date of 20 June 2022. This tenancy includes 722m² of floor area and six car parking spaces. Rent totals $84,100 per annum plus GST.
Total net annual rent for the entire property is $409,692 per annum plus GST.
The RPM-occupied area constitutes the majority of the improvements to the property. The entrance to the office area is an attractive two level atrium staircase leading to a reception area. Off the reception is a boardroom and director and administration offices. On the first floor there is also a kitchenette and bathroom. The ground floor includes a large tiled lunch room, locker area, changing rooms and toilets.
The main warehouse occupied by RPM is accessed via two roller doors and features a high-stud ranging from 7.8 metres to 9.0 metres. This warehouse features rails for the use of the lessee’s five ton and ten ton gantry cranes. In addition, the lessor owns two five ton gantry cranes that are leased to RPM. Within this warehouse is a two-level office block built to accommodate engineering and drafting staff, providing a view over the warehouse and manufacturing facilities.
The centre warehouse tenancy leased to RPM is partitioned from the main warehouse by a partial height wall. This separated area provides a rectangular shaped warehouse and is accessed from the current RPM warehouse.
The rear tenancy to be taken up by Hydroflow Distributors Limited provides a rectangular warehouse and portacom-style building that is used as a lunchroom/office for warehouse staff.
34 Apollo Drive is made of quality construction materials. The foundations are concrete and the exterior cladding is pre-cast concrete tilt-slab, marble stone and aluminium panelling. The roof is longrun steel.
Meister says Apollo Drive is regarded as the premium industrial area on the North Shore because of the quality of buildings and tenant profiles. Number 34 is located on the fringe of the highly sought-after Interplex @ Albany Business Precinct, which, in conjunction with the adjacent Albany Heights subdivision, has experienced rapid growth recently. The current zoning is Business 9, with this proposed to change to Light Industry under the Auckland Council Unitary Plan.
The property is situated in close proximity to two motorway interchanges; Greville Road (2km to the north-west) and Constellation Drive (1.8km to the south). The CBD is 15 minutes away in off peak traffic conditions.
Bruce says with its high profile, including massive street exposure, established tenants and quality construction, 34 Apollo Drive is a highly desirable investment. Investors can also be reassured by its IEP seismic rating of 92% (A Grade).
“This truly is one of the few properties on the North Shore of this quality, with these features and of such a large overall size,” Bruce says.
34 Apollo Drive is being offered for sale by auction at 12pm on Thursday June 5th 2014 (unless sold prior) at the NAI Harcourts Auction Room, 400 Beach Road, Mairangi Bay.