Erskine + Owen acquires commercial office building for client
Last month our lead commercial property buyer secured the following property for our client:
- Purchase price $2.010m
- Rent $159K per annum
- Yield 7.92%
- Lease: 6 year lease beginning in October 2013 with 2, 3 year right of renewals
- Strong tenant – well established company
- Property type – two level office space with no earthquake issues
Before we started searching we put together a comprehensive Search Brief – with limited search areas. Our client wanted a modern warehouse or office building, but not retail, with a yield requirement of 7-7.5%. Our search area included all commercial areas in Auckland excluding West Auckland.
This property quickly came to our attention and fit the brief perfectly. It is located in Auckland city fringe, close to rail and a subway station on the proposed underground city rail link. Once we had contracted on the property, we completed all the due diligence checks for our client, and the property went unconditional 5 days later.