Two significant properties have come on the market in Newmarket where major construction projects are building investor confidence in the city fringe precinct.
"The ASB Bank building on the corner of Broadway and Balm St sits directly opposite the Westfield 277 shopping centre," says John Binning, director of capital markets at JLL, who is marketing the property for sale via an expression of interest campaign closing on May 30.
"It is a superb property and its sale represents an opportunity to purchase a top shelf investment comprising a quality building, quality location and a quality tenant," Binning says.
The property for sale at 334 Broadway was built for ASB Bank as its anchor premises for Newmarket.
"It is a very high quality retail premises designed by architects Stephenson & Turner with high stud retail space, a basement car park and mezzanine offices," Binning says.
"To show its commitment, the ASB Bank took out a 14 year lease expiring on December 19, 2020," Binning says. "There is one further right of renewal for a period of seven years which takes the final expiry of the lease to December 19, 2027."
The net income from the property is currently $482,553 per annum plus GST with a provision for rent payable for each annual rent review date to be increased by 3 per cent per annum. The base rental for the next review on December 20 this year is $668,090 per annum plus GST.
The net lettable area of the building is 581.1sq m. It occupies a 373sq m leasehold site with a ground lease in perpetuity having 21 year rights of renewal and seven year reviews.
Binning says the building has been constructed to the highest of standards and achieved a retail property award in the Rider Levett Bucknall Property Awards.
Also for sale through Binning is a seven level commercial office building at 5-7 Kingdon St, which he is selling via an expression of interest campaign closing on June 4.
The seven level building called Bupa House is currently leased by several high calibre tenants including Bupa Care Services, Knowles Consulting Ltd and KGA Ltd.
It has a strong weighted remaining lease term of 6.77 years.
"This is a tightly held family investment property that has finally been released to the market," Binning says.
"It is positioned within the growth area of Newmarket and adjacent to the new Auckland University Campus now under construction."
Earning annual rent of $1,351,300, the 4568sq m building with 71 car parks occupies a freehold Business 4 zoned site of 1191sq m.
Nick Hargreaves, managing director at JLL, says that after several years of minimal activity, Newmarket is now moving forward again.
"Retail confidence is building with several transactions through 2013 demonstrating that retailers were prepared to think long term about the precinct," he says.
"This year we are seeing a pickup in the market for investment properties in Newmarket reflecting a return to liquidity for larger assets.
"The latest numbers indicate that Newmarket rents range between $155 per square metre and $300 per square metre, to average at $233 per square metre.