The property at 270 Broadway fronts the Newmarket fashion precinct.
A very distinctive retail and office investment property situated on a long term leased site 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 4 pm on Wednesday October 7, unless it sells beforehand by negotiation.
"This is a very distinguished property, held in a family trust for the last 38 years, and now coming to the market with an attractive split income stream from multiple tenants.
"It's also located on one of Auckland's busiest intersections that sees upwards of 40,000 vehicles passing by each day."
Dowling says the high profile building represents a good potential investment opportunity.
"Not only does it give investors the chance to gain a foothold in the tightly held Newmarket precinct, but it will be a passive, high yielding asset for its new owner."
With established tenancies anchored by both national and international brands, including Flight Centre and French retailer L'Occitane, the property comprises 12 leased units across a diverse business mix. Eleven of the 12 spaces are currently occupied earning gross annual rent 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 sq m space could be generating further rental income in very short order."
The 1930s' art deco-styled building has been built to full site coverage with the eight ground level retail spaces ranging in size from 21 sq m to 53 sq m. Four office suites occupy the second level and range in size from 30 sq m to 81 sq m.
Oscroft says the property's ground lease to Tramco Group 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. Access for tenants is 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 prospective activities for the site including commercial, leisure, high-density residential, tourist, cultural, community and civic services."
Stratton says Newmarket's desirability as a 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 popular with consumers and investors alike."
Newmarket is two and a half kilometres from the Auckland central business district and has regular rail and bus services to and from the city.
"The building is strategically located across the road from the well patronised 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 car park buildings being nearby," Stratton says.
What's on offer?
The property: Two storey retail and office building.
Location: 270 Broadway, Newmarket.
Agency: Colliers International.
Sales method: Deadline private treaty closing 4 pm on Wednesday October 7.
Features:
• Eleven of 12 units currently leased across diverse business mix.
• Earns gross annual rent of $397,549.
• Ground floor shops front Newmarket's fashion precinct.
• Across road from Two Double Seven Shopping Centre.
• Potential for immediate rental growth.