Jubilee gem an enviable site

The Carlton Hotel, first known as the Jubilee Hotel to commemorate Queen Victoria's 50th year of reign, has lost none of its grandeur over the years. Photo / Supplied

The Carlton Club hotel, a striking Auckland architectural landmark on the corner of Broadway and Khyber Pass Rd in Newmarket for more than 120 years, is being sold, giving an opportunity to add value as a result of developments taking place in the area.

The historic hotel, which cost £4700 to build in 1887, is for sale through Clint Barber and Ed Donald of Bayleys Auckland, with tenders closing on September 10.

Barber says the Carlton is a well-maintained standalone two-level hospitality building of 705sq m on a 531sq m site. "It's a grand old building that lends itself to refurbishment and a new identity. A savvy investor with a desire to hold property in Newmarket will see the potential the property offers and the significance of owning a piece of Auckland's history in such a strategic location."

As licensed premises the building has had least four name changes since being built. It was first known as The Jubilee Hotel, to commemorate Queen Victoria's 50th Jubilee in 1887. At that time the Newmarket Borough Council proposed that a statue of the Queen should be erected on top of the front corner of the hotel in preparation for the Golden Jubilee celebrations, however, this was later changed to putting up a town clock.

The hotel was designed by Edward Mahoney & Son, perhaps most recognised for their design of the Customhouse in central Auckland, and built by William Edgerley for William J. Suiter, a brewer who was also the first mayor of Newmarket Borough.

At one stage, it was one of 18 breweries in Khyber Pass Rd but is now the only Newmarket hotel built in the 19th century still standing.

The building underwent substantial renovation and engineering improvements in 1992. At present it houses the Carlton bar, brassiere, restaurant and off-licence.

The existing lease to Carlton Bar and Brasserie expires in October next year with no right of renewal. It is producing annual rental income of $300,975 including GST. "The appeal for a new owner is that the property has a year's holding income, allowing time for new plans and ideas to be consolidated and then pursued through the usual channels," Barber says.

"The real potential for this property lies in converting it into a multi-tenancy complex to capitalise on the location and the boutique space that the building offers. Given the corner position it occupies, the property benefits from exposure to significant traffic flows at the junction of Broadway, which is Newmarket's main retail strip, and to Khyber Pass Rd."

The Carlton Hotel is opposite the 5ha former Lion Nathan NZ site in Khyber Pass Rd that was bought by AMP, which is reported to be planning a high-density apartment, shopping and retirement precinct.

The Carlton Club building has a ground-level net lettable area of 401sq m and a 61sq m courtyard. On the first floor there is a total of 182sq m and there is a 20sq m mezzanine. "The ground floor faces both Broadway and Khyber Pass Rd and the first floor has its own entrance direct to Broadway," Donald says. "A recent annex at the rear of the property houses the gaming machines for the Carlton bar which fronts on to Osborne St.

"As part of the wider Newmarket revitalisation programme, a council upgrade of Osborne St is under way which includes wider footpaths, trees and street furniture.

"Following its completion it would perhaps be feasible to open up the back of the building and have a smart cafe offering al fresco dining."

Donald says the Carlton building is located in a progressive part of Newmarket.

The former Hayes Metal Refinery on Osborne St is being fitted out with boutique stores, several of which are expected to open in spring.

Many established brands are confirmed to move to these premises as well as businesses not previously operating in Newmarket.