A premium retail and office investment property in the heart of Newmarket is on the market for the first time in nearly 40 years.
“This is a prime, two-storey building with ground floor shops fronting Newmarket’s fashion precinct on both Broadway and Remuera Roads,” says Deborah Dowling of Colliers International who, with colleagues Charlie Oscroft and Euan Stratton is marketing the property at 270 Broadway, Newmarket, Auckland for sale by deadline private treaty closing at 4pm, Wednesday October 7th, unless sold prior.
“This is a very distinguished property, held in a family trust for the last 38 years, now coming to the market offering an attractive split income stream from multiple tenants.
“It is also located on one of Auckland’s most high profile and busiest intersections that sees upwards of 40,000 vehicles passing each day.”
Dowling says the prominently located building represents a high-return investment opportunity.
“Not only does this property give potential investors the chance to gain a foothold in the tightly held Newmarket precinct, but it also presents the new owner with a passive, high yielding asset.”
With established tenancies anchored by both national and international brands including Flight Centre and French retailer L’Occitane, the property leases 12 units across a diverse business mix. Eleven of the 12 spaces are currently occupied returning a gross annual rental of $397,549.
Oscroft says immediate rental growth could be realised by leasing the remaining unit, only recently vacated by the vendors business.
“Given the near record-low vacancy rates across Newmarket, the 41 sqm space could realistically be generating further rental income in very short order.”
The 1930’s Art Deco-style building has been built to full site coverage, offering eight ground level retail spaces ranging in size from 21 sqm to 53 sqm. Four office suites occupy the second level and range in size from 30 sqm to 81 sqm.
Oscroft says the property is also situated on a ground lease to Tramco Group that has very appealing terms fixed for the foreseeable future.
“The current vendor negotiated the ground rental for this property to be set at $215,156 per annum, in 2013, for a period of 21 years under the terms of the ground lease. A fixed lease agreement like this means a new owner can rest assured the ground rent will not go up until 2034.”
The building is constructed of concrete and brick, with much of the original wooden joinery updated over recent years to aluminium/steel and plated glass.
Amenities include a common area to the rear of the property with toilet facilities and kitchen. The building also offers tenant accessibility via a rear service lane.
Oscroft says the Business 3 zoned property has a Business-Metropolitan Centre zoning scheduled under the Proposed Auckland Unitary Plan allowing diverse future re-development options.
“This classification offers a wide range of potential activities for the site including commercial, leisure, high-density residential, tourist, cultural, community and civic services.”
Stratton says Newmarket’s desirability as Auckland’s leading, city fringe, retail and office location continues to be reinforced.
“Newmarket has grown into a carefully planned retail and commercial destination attracting top end tenants. With easy motorway access and diverse leisure amenities including cafes, bars, movie theatres and boutique hotels, it’s not surprising the area is so popular for consumers and investors alike.”
Newmarket is conveniently situated two and a half kilometres from the Auckland central business district (CBD) with regular rail and bus services to and from the city.
“The building is strategically located across the road from the popular Two Double Seven Shopping Centre, in a high foot traffic area. Parking is also very convenient with street parking available immediately outside as well as three carpark buildings nearby.”