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.
“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.”
“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.”
“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.”