The Orange offers a prime investment with character and BTR income

The Orange offers a prime investment with character and BTR income

Auckland’s iconic The Orange – a premier mixed-use, city fringe development incorporating a landmark character building and built-to-rent apartments – is for sale for the first time.

Prominently located at 141-149 Newton Road in Eden Terrace, The Orange is a comprehensive integrated development comprising 66 high-quality apartments, three office levels and two retail units.

It features one of Auckland’s most celebrated heritage buildings, The Orange Hall, which has been incorporated into an eye-catching, architecturally designed modern development with a curved curtain wall and bold orange accents.

With 65 per cent of its revenue derived from residential tenants and 35 per cent from commercial leases, The Orange presents an outstanding opportunity to acquire a Covid-hedged, split-risk investment.

The property currently returns some $1.78 million in net annual rent, providing secure diversified returns for a new owner.

Colliers International has been exclusively appointed to market The Orange for sale by deadline private treaty closing at 4pm on Wednesday 25 November, unless it is sold earlier.

Gareth Fraser, Auckland Director of Investment Sales at Colliers, says it is a chance to acquire a truly special property.

“This unique split-risk investment offers an ideal mix of quality, size, location and long-term income potential.

“Combining stunning heritage character with distinctive contemporary design, The Orange is a real trophy asset that deserves to take pride of place in any premium property portfolio.

“The original Orange Hall is an iconic building that has been a significant part of New Zealand’s cultural and architectural history for almost a century.

“Completed in 1923, it was designed by Arthur Sinclair O’Connor and built by Fletcher Construction. Its name stems from William of Orange – King William III of England, who reigned in the late 17th century.

“During World War II, The Orange was open six nights a week to crowds queuing two-deep down its steps and along Newton Road. It helped launch the careers of legendary Kiwi performers including Dame Kiri Te Kanawa and the late Sir Howard Morrison.

“The Orange was primarily a jazz venue until it was taken over and repainted in its trademark orange by the Performing Arts School in 1987.”

Richard Kirke, International Director of Colliers’ Capital Markets team, says the property was transformed by the current owners in 2015.

“The vendor had a vision to comprehensively redevelop the 2,048sq m freehold site, whilst retaining the beautiful heritage-listed Orange Hall. The resulting design, led by acclaimed local firm Crosson Architects, won a 2016 New Zealand Architecture Award.

“The original Orange Hall has been fully refurbished and earthquake strengthened. It retains its brick façade to the north, while full-height windows have been added to the west fronting a new raised central plaza.

“The interior has been reconfigured to provide three levels of character office space. Features include exposed timber beams, sand-blasted walls, wood panelling and a character ceiling.

“The central plaza features basalt paving and planters, along with etched footprints and dancefloor chairs that reflect the old hall’s heritage.”

Two new buildings, fronting Newton Road and Dundonald Road, wrap around the old hall and plaza.

“The new buildings provide 32 studio apartments, 24 one-bedroom apartments, five two-bedroom apartments and six two-level loft apartments, one used as a commercial office,” says Kirke.

“The buildings also include two retail units, as well as further office space, a lobby and two basement levels providing 80 car parking spaces.”

Alan McMahon, Strategic Advisory National Director at Colliers, says built-to-rent (BTR) is an investment class whose time has come.

“There has been a lot of talk about the potential of the BTR sector, but few opportunities have come to the market to date.

“We know there is substantial pent-up tenant demand for quality, well-managed residential rental accommodation.

“Covid-19 has exacerbated Auckland’s housing unaffordability problem, as investors flock to residential as a secure investment. This has locked out many would-be buyers from the market.

“At the same time, Auckland’s population is continuing to grow, fuelled in part by Kiwis returning from overseas. We need more housing, but new supply is constrained by industry capacity and expensive building and land costs.

“For all these reasons, demand will continue to outweigh the supply of accommodation in Auckland in the long term.

“The Orange represents a superb opportunity to enter the BTR market or add to an existing portfolio.”

The tenancies are managed by the professional team at Crockers Property Management. A team of experienced property managers provide seamless service across both the commercial/retail and residential tenancies to ensure that the complex runs smoothly and delivers ongoing returns to its owner. The apartments have continued to deliver returns despite the impact of Covid, with 98 per cent of residential income collected in 2020.

As well as its appeal as a passive investment, The Orange also presents a multitude of other potential options. These include converting some or all of the commercial units to residential; adding to or starting a BTR investment fund or syndicate; adding value by increasing rents or lease terms; or converting the lofts to office space.

A new owner could also subdivide or unit-title the apartments for future sale, providing a potential capital gain on investment.

Jonathan Lynch, Associate Director of Investment Sales at Colliers, who specialises in the CBD fringe, says the property enjoys a superb location.

“The property is only 2km from the CBD and surrounded by multiple cafe, convenience and hospitality options, including Galbraith’s Alehouse and Sid at The French Cafe.

“It also has excellent transport links, with very close motorway on and off-ramp options, together with a central location to numerous major bus routes. It will also be within walking distance to the two new City Rail Link stations at Mt Eden and K’Road.

“The area boasts very good childcare and schooling options, including BestStart Newton, Auckland Girls’ Grammar and the Auckland Grammar zone.

“The Orange is superbly located to benefit from all of this amenity, making the Newton/Uptown precinct a hugely attractive place to live and work, ensuring strong tenant demand now and into the future.” 

Related Experts

Gareth Fraser

Auckland Director - Investment Sales

Auckland CBD

Gareth leads Colliers International's Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in North West Shopping Centre) and North Shore (based in Takapuna).

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants. It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

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Richard Kirke

Director | Capital Markets

Auckland CBD

Richard is responsible for the promotion of New Zealand property to international investors, leveraging of his relationships developed in executive positions during his near 8 years in Hong Kong, as well as assisting to grow the company’s nationwide Rural and Agribusiness agency capability.

Richard began his real estate career in 2004 with CBRE, in the five years he spent with them (before leaving to run Colliers Hong Kong business in 2008) he was involved in many notable transactions including the sale of the Lion Nathan site in Newmarket for $162m, the sale of the GE & BNZ Britomart properties on behalf of Manson’s to the German fund HIH and portfolio sales, including the successful auctioning of 16 National Bank Branches across New Zealand.

During his time as MD of Colliers Hong Kong he was involved in the sale of 50 Connaught Road on behalf Apollo Group (a New York based Hedge Fund) to the Agricultural Bank of China for $US632m.

Richard was the Managing Director of Colliers Hong Kong office for six years from 2009-2014. During this time he was an active participant in several high value transactions and developed broad relationships with both Asian investors and colleagues across the region.

In late 2014, Richard agreed to run CBRE’s Asia Pacific Capital Market business, including their Capital Advisory (Real Estate Investment Banking) business, this further added to his knowledge of real estate investors, particularly in greater Asia.

As a senior executive of Colliers for 6 years in Hong Kong, Richard has strong personal relationships with Colliers personnel across the globe.

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Alan McMahon

National Director | Strategic Advisory

Auckland CBD

Alan has overall responsibility for Strategic Advisory for Colliers International in New Zealand. 

He advises a wide range of public and private sector organizations. Clients include Auckland Council,, Massey University, Kiwi Property, Ngai Tahu Property, Ngati Whatua Orakei, Ngati Whatua o Kaipara, NZ Super, and various departments of the New Zealand government including Police, MBIE, Ministry of Justice, and Kainga Ora.

 

 

 

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Jonathan Lynch

Associate Director

Auckland CBD

Senior expertise in Commercial Property Sales and Leasing in central and city fringe Auckland. Completed over $450 million+ sales transactions over the previous 9 years since joining in early 2010 with a focus on investment properties, mixed-use developments, redevelopment sites comprising under-utilised improvements, land sales and office, retail and warehouse leasing.

BBS Degree (Massey University) majoring in Real Estate; 10 years of business development experience in the FMCG sector and previous role as a property manager at Jonmer Projects providing a comprehensive understanding of key drivers in both general business and the property market, together with the added benefit of an appreciation of client liaison & needs.

Client feedback example:

"I'm delighted to be able to offer the sincerest thanks from the owners of 36 Rossmay Terrace and 52 St Lukes Road. Your diligence and professionalism throughout every aspect of these campaigns for the sale of both properties was a strong factor in the extraordinary results achieved for the vendors in each case.

I would be readily recommend you as a 'dream team' within the superb Colliers group." - Parnell Services Limited (for Jonathan Lynch & Hamish Paterson)

Please contact me on 021 900 611 for all or any commercial property advice

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