A Newmarket property with dual frontage onto Broadway and Nuffield Street and with NZ Post and Kiwibank as its anchor tenancy is up for sale as part of Bayleys’ latest Total Property portfolio, with the underutilised site offering future development
Located on a 943sq m site at 416 Broadway and 85 Nuffield Street and producing total annual rental income of close to $360,000, the property is being marketed by Tonia Robertson and Chris White, Bayleys North Shore Commercial in conjunction with Colin McKenna, Bayleys Auckland. It is being sold by tender closing on May 21, unless sold prior.
“It is being offered for sale on behalf of a family trust which has owned it for many years and provides an excellent add value opportunity for the purchaser should they wish to develop the property to its full potential.”
The property is in two titles comprising a 557 sq m leasehold site with substantial frontage onto Broadway, containing a two-level commercial building with three tenancies, and a 386 sq m freehold site at the rear with access off Nuffield Street which is a bare block of land currently used for parking for 17 vehicles.
“The undeveloped freehold portion of the land, in particular, offers a number of exciting options encompassing possible retail, more intensive car parking or residential development, or a mix of these uses,” says Robertson. “This could be done while substantial cash flow is still being drawn from the 416 Broadway part of the property, subject to coming to some arrangements with tenants over car parking.”
The 947 sq m fully leased building on Broadway is anchored by Government-owned NZ Post which leases all of the 477.5 sq m ground floor which contains a NZ Post Shop and a PO Box mail collection centre as well as Kiwibank. The upper level space is split between two tenants. Beauty and personal care business The La Goldenria Day Spa occupies 277 sq m facing onto Broadway while debt recovery company MFL Services Limited, part of the CreditWorks Group, occupies the remaining 193sq m of space backing on to Nuffield Street.
The property is currently returning $359,814 plus GST per annum with 100% of the outgoings paid by the tenant. The owner pays the ground rent on 196 Broadway which is currently $73,312 per annum.
Robertson says all of the tenancies have been fitted out to a good standard with occupants having rights of renewal over their premises running until 2021 and 2022. The building dates back to the mid 1950s when it was constructed as a one storey premises with an extra floor added in 1993 when extensive refurbishments were also made to the property. The new floor comprises transverse steel beams supporting timber joists with intermediate steel columns added to support the beams. A bonus for upstairs tenants is an undercover balcony which runs along the north facing side of the building. The rear of the building also has roller door access which is utilised by NZ Post.
The building has a seismic assessment rating of 70 percent of New Building Standard (NBS) by Beca Carter Hollings & Ferner. Robertson says it may be
possible to add further floors to the building at 416 Broadway, although any potential purchasers would need to undertake their own engineering investigations in this regard.
Colin McKenna says the property has a favourable Business 3 zoning at present which allows for a mix of residential and commercial activities and under the Proposed Auckland Unitary Plan (PAUP), it has a Metropolitan Centre zoning. “It will be one of only 10 metropolitan centres located around Auckland which will be hubs for high frequency public transport and whose zoning allows for a scale and intensity of development second only to the CBD. Like Business 3, the zoning is a very flexible one that permits a wide range of uses, including residential, with the maximum height allowance for Newmarket set at 32.5 metres.”
McKenna says Newmarket has enjoyed strong residential population and commercial development growth in recent years and this is likely to gather further momentum when the PAUP comes into effect. “The surrounding locality is already diverse in character and comprises a range of office and retail buildings, together with a number of modern apartment complexes and we are likely to see more of these in future with Auckland Council encouraging high intensity residential development around major transport hubs.”
Chris White says Nuffield Street has undergone a major transformation in recent years into a popular boutique fashion and art precinct and food and beverage destination, complementing the big brand retailers operating on Broadway. He says 416 Broadway will benefit from the massive proposed expansion of The 277 Westfield Shopping Centre in its direction, which will be centred on the Farmers site on the other side of Mortimer Pass at 365 Broadway.