Morningside two-level warehouse provides multiple options

This warehouse and office building at 25-27 Taylors Rd is for sale. Photo / Supplied

For the first time in 16 years, a prominent two-level warehouse and office building situated at 25-27 Taylors Rd, Morningside, is being offered for sale.

The property is currently returning $158,000 from three tenants and is being sold by private treaty through John Stringer and Graeme McHoull of Barfoot and Thompson Commercial City office. The building comprises 1145sq m net lettable area overall and is situated on a 1128sq m freehold Business 4 zoned site.

"This property provides multiple options and will appeal to owner-occupiers, family trusts and astute investors who will see its potential as a modern stand-alone property given that the overall net rental is only $129/sq m," says Stringer.

He says the ground floor, which is leased to two long-term tenants, comprises 431sq m of warehouse and a 225sq m office.

"The Auckland Seido Karate Club on the eastern side has its own entrance and entry foyer and has been a tenant in the building for the past 20 years. The club's premises include a high stud warehouse and mezzanine with a special-purpose wooden floor installed by the club. Toilets and shower facilities are on both the ground floor and on the mezzanine."

Also on the ground floor is International Embroidery Ltd (IEL), which manufactures badges, monograms, motifs and logos.

"They have been operating in the building for 16 years and have a six-year lease which commenced in November 2009," says Stringer.

"The premises contain three individual offices, which have wall-mounted air-conditioning units, a lunchroom and an amenity area. It has 118sq m of office and 282sq m of medium-height warehouse space."

The first floor comprises 474sq m of office space and is served by a wide feature staircase from the ground floor. It is occupied by Finance Now, a substantial finance company majority-owned by the Southland Building Society, on a six-year lease expiring September 30, 2011.

"Finance Now have advised that they will not exercise their right of renewal on expiry of the current lease as they have outgrown the space," McHoull says. "This opens up the building to owner-occupiers and tenants who are looking for 200-474sq m of office space."

The premises currently contained six offices, a large open plan, work-station area, boardroom and two amenity areas and are of a modern standard, well presented with good natural light, suspended ceilings, lighting and air conditioning.

"They could easily be split into two tenancies. In addition, given that the net rental is only $158/sq m for the space, there is the opportunity to add value through the leasing process."

A wide range of activities are permitted under the Business 4 zoning, including office, warehouse and retail uses. The relevant development controls include a maximum height allowed of 15m and a basic floor area ratio of 2 to 1.

The building has concrete foundations, floor and block walls with curtain wall glazing. The roof is profiled steel with aluminium joinery.

Stringer says Morningside is a very popular city-fringe location with easy access to most of Auckland's main traffic routes and is close to retail and commercial activities, notably the Westfield St Lukes shopping centre.

The property's position is within an area of commercial and industrial development centred around Morningside Drive, about 4km southwest of Auckland's central business district.