Silverdale industrial property forges ahead

The Property
• 2,045sqm of high-quality buildings on a freehold title of 4,851sqm
• Modern building with seven individual office and warehouse tenancies
• 100% occupancy
• 41 car parks
• Tenants on varying lease terms
• Returning net income of $311,644 per annum plus GST
• Range of tenant occupiers including office, security business, construction-related service providers, distribution
• Zoned Heavy Industry

Quick Look
• National Total Property marketing campaign – by auction
• Interest generated via Bayleys’ databases and Total Property magazine
• More than 40 direct enquiries
• 4 active bidders on auction day, with 23 bids placed
• SOLD under the hammer for $6,125,000 at a 5 percent yield
• Purchased by a local buyer with a significant industrial portfolio

The Story

With Silverdale north of Auckland seeing significant residential growth, investors have been quick to secure commercial and industrial property that supports the changing dynamics within the broader area.

Graeme Perigo and Ben Clare of Bayleys Silverdale expected strong enquiry from investors when they launched this fully-tenanted Forge Road offering to the market and were pleased with the response from motivated buyers.

“The property is prominently located on one of the Silverdale industrial precinct's main arterial routes and just a five-minute drive to the motorway on/off ramps,” says Graeme.

“Along with the profile to busy Forge Road and the connectivity benefits, there was also potential rental upside given the existing leases.”

Graeme says there’s minimal vacancy for industrial property in and around Silverdale, and a shortage of development land for industrial use.

“Hence, quality industrial property is very tightly-held in Silverdale – a fact not lost on the successful bidder on auction day who added 56 Forge Road to an established industrial portfolio.”

Vendor Comment

Vendor Colin Crawford says a long-term real estate relationship with agent Graeme Perigo cemented the decision to sell with Bayleys.

Colin has a building background and bought this Forge Road site and developed it around 20 years ago as a private family investment.

The decision to engage Bayleys to handle the sale was based on loyalty and trust.

“Graeme has been my agent of choice for some sixteen years, starting when he was with another agency, and largely handling leasing of our property portfolio.

“Likewise, when Ben teamed up with Graeme several years ago, he fitted into the way we like to do business.

“We have developed a good working relationship over those years so when Graeme and Ben joined Bayleys early in 2022, we followed and they’ve continued to look after us very well.”

Colin says it has been a successful partnership – for all parties – and has meant that all transactions have been dealt with transparency and two-way trust.

“When we went to auction, market conditions were described by Bayley’s as ‘sticky’ but I was happy with the efforts of the auctioneer, Graeme and Ben – and ultimately, with the outcome.

“It’s human nature to say we would have liked to achieve a greater return on auction day, but when the dust settles you come to terms with the fact that the thing being auctioned is only worth what someone will pay on the day.”

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