Skip to main content Skip to footer

High-profile Newmarket asset sure to impress

NZ_AucklandCBD_Communications_Highprofile Newmarket asset sure to impress

A prominent multi-level office and retail building on a high-profile corner site in the sought-after city fringe suburb of Newmarket will appeal to buyers of all kinds looking to acquire a large-scale asset with significant rental income and long-term upside.

435 Khyber Pass Road, Newmarket is a five-level building providing 3,790sq m of total net lettable area comprising three levels of office space, one floor of retail, and one level of car parking.

The highly visible property sits on a strategically positioned 1,166sq m freehold site that is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan and offers more than 70m of street frontage. The building has an 83 per cent NBS rating.

The subject site has a mixture of retail and office tenants with potential for rental growth given there is 467sq m of vacant office space that comes with two car parks. The total passing income for the property is $1,246,357 plus GST per annum.

The property is surrounded by a range of significant retail, commercial, and residential developments, while offering access to the nearby motorway network and key public transport links providing connectivity to all corners of Auckland.

Colliers Directors David Burley and Blair Peterken have been exclusively appointed to market the property for sale and are taking expressions of interest with the deadline for offers closing at 4pm on Wednesday 13 July, unless sold prior.

Of the office tenants, Atlantis Healthcare leases 525sq m on Level 1 and has access to seven car parks. Their lease runs until 21 December 2022, and they have one further right of renewal for three years.

Ozac Architects are the Level 3 tenant and lease 967sq m of space and 12 car parks. Their six-year term expires in January 2024, and they have one further right of renewal for six years.

Nova Energy leases 966sq m on Level 4, and 12 car parks, and their current lease is in its final term and expires in January 2023.

The ground floor retail tenancies are occupied by Chemist Plus, Beds4U, and the Tokyo Food Company and span from 228sq m to 375sq m.

All current retail tenants have further rights of renewals on their leases providing a strong tenant covenant for buyers.

Burley, Associate Director of Investment Sales at Colliers, says the property provides prospective purchasers the chance to secure a strategic asset that has future growth potential.

“This is a premier building with a complementary tenancy mix offering buyers the opportunity to grow their income stream through securing a new tenant for the property, while upcoming rental reviews will also provide incremental growth,” Burley says.

“Based on current market estimates, when fully tenanted, the property could return approximately $1,414,850 plus GST in net annual rental income per annum.

“Long-term, based on the favourable zoning, the property could be repositioned for many potential uses, including residential, commercial, retail, or other mixed-use options.”

Peterken, Director of Capital Markets at Colliers, says the property is perfectly positioned in one of the most tightly held parts of the city.

“Newmarket is one of Auckland’s most popular city fringe suburbs housing multitudes of businesses over the generations and has provided thousands of jobs to workers,” Peterken says.

“Its industrial past has morphed into a present day high-end urban town centre where you will find an abundance of commercial and corporate operators, New Zealand fashion designers, local and international retailers, hospitality outlets, a vast array of fitness centres, and beauty outlets, among other services.”

“The refurbished Westfield Newmarket shopping centre is in walking distance offering fantastic shopping options in the area and we encourage all interested parties to contact us promptly.”

To view more investment opportunities use our property search here.


Related Experts

David Burley

Associate Director

Auckland CBD

David is an Associate Director in the Investment Sales team in Auckland, specialising in the sale and lease of commercial property in Auckland.  Since joining Colliers David has been involved in a number of high profile transactions in the CBD and city fringe. Whilst David offers a broad range of services, his areas of expertise focus on the sale and acquisition of investment properties (office, retail or industrial), the re-positioning and refurbishment of under-utilised buildings, commercial developments and land sales.

Prior to joining Colliers, David earned a law and politics degree from the University of Otago and had 10 years professional experience as an investment banker, financial consultant and commercial lawyer. David's broad professional experience gives him a strong commercial understanding and a highly beneficial insight into the mindset of how vendors and purchasers operate. Furthermore, David's technical knowledge of mergers and acquisitions and corporate/commercial law are vital when negotiating on behalf of his clients.

View expert

Blair Peterken

Director | Capital Markets

Auckland CBD

After more than a decade in Australia’s highly competitive commercial property sector, Blair joined Colliers International NZ as Director in the Capital Markets team in April 2017.

Specialising in the sale of larger commercial assets and mixed-use sites around New Zealand, Blair brings a high level of energy and diligence to the industry. His extensive knowledge and educational background ensures he is well-equipped in progressing and developing the Capital Markets team.

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Previous Experience

From 2014 – 2017, Blair was Director and Head of JLL’s South Sydney office where under his leadership, the company  grew from third to first in the South Sydney market in both leasing and sales. In 2015 he was the company’s highest fee earner across the Australian industrial business. Blair specialised in the sale and leasing of larger industrial and commercial assets including mixed-use development sites within the South Sydney market.

Prior to this he was Head of Industrial, South Sydney at CBRE. While at CBRE, Blair won the prestigious Circle of Excellence Award twice for his performances and was highest fee writer in the South Sydney office in 2012 and 2013.

Peterken’s top transaction while in Sydney  was the 2014 sale of a 4.9ha business park in Rosebery, South Sydney to Meriton Group  for A$190,000,000

His two biggest leases were the single largest leasing transactions in South Sydney in their respective years. In 2011, he leased a Goodman-developed, 12,400sq m warehouse and office in Mascot to logistics company Toll, and last year, he leased a Meriton-owned 22,000sq m site in Pagewood to WSI Logistics.

 

A selection of notable sale transactions:

  • Sale of St Kentigern Girls School, Remuera - $40,000,000 +
  • The General  Buildings, 29-33 Shortland Street, Auckland - $42,000,000
  • 110 Symonds Street, Auckland - $38,500,000
  • 1-55 Rothschild Ave, Rosebery - $190,000,000
  • Central Park Business Park,  Greenlane - $209,000,000
  • Bunnings Hamilton South - $25,100,000
  • The Warehouse, Blenheim - $16,380,000
  • NZI Centre, Auckland - $63,000,000
  • Royal Heights Shopping Centre, Auckland - $17,000,000
  • 75 Karangahape Road, Auckland - $23,300,000
  • 5 Nelson Street, Auckland - $9,000,000
  • 66-80 Broadway, Newmarket - $65,000,000

 

View expert