The standalone retail property at 252-254 Broadway. Photo / Supplied
The standalone retail property at 252-254 Broadway. Photo / Supplied
The lights are shining bright on Broadway for Bayleys which has recently sold three commercial properties on Newmarket's main street.
Alan Haydock, senior Bayleys broker and leader of the agency's central Auckland City & Fringe commercial team, says investors are jockeying for positon on Broadway ahead of the completion atopposite ends of the street of the massive expansion of the 277 shopping centre and Mercury NZ's new head office building.
The three properties to sell at a total value of $25.7 million are:
• 180-182 Broadway: This 2062sq m fully leased, seven-storey office building, with two double stud height retail shops at ground level, and occupying 427sq m of land, sold for $11.5 million at a 6.6 per cent yield through Haydock, Damien Bullick and Graeme Sun of Bayleys Auckland. Route 66 and Tank Juice occupy the retail space with Techtorium NZ leasing three of the five office levels. The sale included 21 car parks on individual unit titles in an adjoining building plus additional income from an advertising signage lease on the southern exterior. • 136 Broadway: A six-level, 1432sq m retail and office building with basement car parking, on a 400 sq m site opposite the intersection with Khyber Pass. It sold for $7,196,000 at a 6.4 per cent yield through Oscar Kuang, James Chan and Matt Lee of Bayleys International Division. Ray White occupies the ground floor on a six-year lease from August 2017 and has signage rights on the building. The floors above are tenanted by various professional firms and the property's Metropolitan Centre zoning, with a building height allowance of 28.5m, offers future development potential. • 252-254 Broadway: A 746sq m standalone retail building constructed in 1994 on a 362sq m site sold for $7m at a 7.41 per cent yield through Ed Donald and David Bayley of Bayleys Auckland. Rodd & Gunn occupies 529sq m over two levels on a lease until February 2022 with Nike leasing the remaining 271sq m until August 2022.
Like its New York Broadway namesake, the premier street in one of Auckland's oldest suburbs has long been a centre for shopping and entertainment.
Newmarket transformed itself from a bustling livestock market into a shopping district in the early 1900s and a previously muddy stretch of Manukau Rd was renamed Broadway to mark the occasion.
A century on and Newmarket has retained its superb investment fundamentals, Haydock says.
The fully leased seven-storey building at 180-182 Broadway. Photo / Supplied
"The area is close to the CBD and surrounded by the affluent residential suburbs of Parnell, Remuera and Epsom. It is also close one of Auckland's oldest and largest parks, the 75 hectare Auckland Domain, and now also has easy access to motorways.
"The enduring appeal of Newmarket is evidenced by the prodigious level of investment we're continuing to see in the suburb," says Haydock. "It really took off a few years ago when Auckland Council initiated an upgrade of an historically-significant area behind the Rialto Centre. Narrow, cluttered lanes and generally unsafe footpaths gradually morphed into attractive and lively streetscapes which pedestrians and cars share and where boutique shops, cafes and restaurants now thrive.
The six-level retail and office building at 136 Broadway - at far left. Photo / Supplied
"Tournament has also contributed significantly to reinvigorating a tired industrial corner of Newmarket between York, Kent and Osborne streets without sacrificing its inherent charm, as it has done with the City Works Depot in the CBD."
Looking forward, Haydock says all eyes are fixed on the huge $790m redevelopment of 277 Broadway by Scentre Group, the owner of 39 Westfield shopping centres across Australasia.
Haydock can't see the bright lights of Newmarket dimming any time soon. "My regular investors are continuously scanning the area for opportunities. Once the 277 Westfield shopping centre opens, I'm confident we will see foot traffic increase dramatically, which will take Broadway to a whole new level."
