"It comprises a 980sq m warehouse, showroom and office at the front of the site, with an undeveloped block of level land at the rear of about 2500sq m. Dual-access down either side of the building provides full drive-around-capability, making the property ideal for future development, expansion or split tenancies.
"The building at the front is for sale with a two-year leaseback, from settlement, to Fyfe, paying $110,000 plus GST in net annual rent. "Undeveloped land at the rear is being sold with vacant possession, allowing the new owner immediate use," says Higgins.
Franklin believes the property presents a variety of opportunities for add-value investors, owner-occupiers and developers.
"The front of is under-rented, giving investors scope for rent uplift once Fyfe vacates the premises. The rear can be leased to a yard-based user straight away, providing an additional income stream without significant capital outlay.
"Owner-occupiers and developers will appreciate the ability to immediately develop the rear of the site from settlement, with the potential to add another building of up to approximately 2000sq m on the site.
"When Fyfe moves on in two years, the owner then could take possession of the front of the site, lease it to a new tenant for a secondary income stream, redevelop, or subdivide and sell. The front building is suitable for redevelopment into split tenancies, given its narrow profile on the site and drive-around capabilities. Possibilities are seemingly unlimited," says Franklin.
The men say the generic 720sq m medium-stud warehouse is accessed via multiple roller doors. It is used by Fyfe for cabinet making, using the latest computer-aided design and manufacturing equipment. The exterior of the 240sq m showroom and office was recently refurbished to take advantage of high profile to Allens Rd. The road is considered the key arterial route between State Highway 1 and Auckland's growing eastern suburbs.
With 40m of frontage, the property gets significant exposure to 16,000 passing vehicles every day. It's about 250m to the main intersection linking with Highbrook Dr and Cryers Rd, putting it within minutes of the Highbrook SH1 interchange.
Strong demand for property in East Tamaki has seen vacancy rates drop to as low as 1 per cent. Most of the land has been soaked up, meaning demand can rarely be satisfied.
Fyfe Kitchens has occupied 60 Allens Rd for more than 40 years. It was founded by Don Fyfe in 1970 and sold to the current owners in 1987.
In the 1990s, it shifted its focus from commercial and residential joinery to custom-built kitchens. Fyfe is now a leading manufacturer of kitchens, bathrooms and lifestyle spaces, supplying one-off customers through to multi-house developers.
