Newmarket green star building has solid tenant

Fuji Xerox is the long-term anchor tenant at 79 Carlton Gore Rd. Photo / Supplied

A four green star building in Newmarket, in which Fuji Xerox is the long-term anchor tenant, has been put on the market as an ideal investment opportunity.

The property, at 79 Carlton Gore Rd, is for sale by negotiation, with John Binning of JLL the sole agent.

Binning says the two-level commercial office property, with a net lettable building area of about 3597sq m, has two levels of basement car parking for 95 vehicles with another five open car parks in the front of the building and was completed in 2015.

The 1639.39sq m ground floor encompasses a 58sq m lobby cafe along with office space while Level 1 has the mainstay of the office accommodation within a 1824.04sq m rentable area.

"A feature is a 138.77sq m roof top terrace, with a pleasant outlook over the surrounding cityscape and north across the Auckland Domain," Binning says.

On the ground floor, the cafe is situated adjacent to the building entrance lobby, opening on to Carlton Gore. To the centre of the building is a fully glazed atrium while the balance of the floor space is office accommodation.

Level 1, with a floor-to-ceiling stud height in the order of 2.8m to 3m, is all in office fit out.

The basement car parks over two levels are accessed from Carlton Gore and from there by lift to the office levels. They comprise 37 standard carparks and 58 stacked carparks.

The rooftop deck features a pergola with adjustable shade, planters and custom built seating.

Binning says the building is 100 per cent leased to Fuji Xerox New Zealand Ltd and Fuji Xerox Finance Ltd for a 12-year lease term while the cafe tenancy is leased to Billy Billy Limited.

Fuji Xerox currently pays annual rent of $2,245,218 plus operating expenses (OPEX) and GST on a lease commencing December 1, 2015 with two further terms of six years each for a final expiry date of November 30, 2027. The lease provides for fixed 3 per cent rent increases for the entire lease duration plus market reviews on each renewal date of the lease.

Most of the 2131sq m land area is on a freehold title.

However, 217sq m — adjacent to the railway corridor on the rear southern boundary — is leasehold. This portion is subject to a terminating ground lease with final expiry November 30, 2052.

The building sits over the freehold and leasehold land components, with the unrecovered ground rent currently sitting at $22,730pa, says Binning.

The next ground rent review is due in December 2022 for a five-year-period.

Binning says says the property's Metropolitan Centre Zone would allow a wide range of activities, including commercial, leisure, high-density residential, tourist, cultural, community and civic services.

The property is on the southern side of Carlton Gore Rd in the fringe city suburb of Newmarket with the Auckland CBD about 2.5km to the north-west.