A mixed-use commercial property in a high profile position on Broadway, Newmarket’s main retail strip, is up for sale offering a substantial cash flow from its 17 tenancies as well as a significant future development opportunity.
One of the trophy listings in Bayleys’ latest Total Property portfolio, the freehold property located at 154-168 Broadway is fully leased and is currently generating annual rental income of approximately $684,148.
It comprises a mostly single-level 1464 sq m building, with five retail tenancies on its substantial Broadway frontage. The remainder of the income is derived from contemporary office studios which surround an internal courtyard at the rear of the site.
“A key attribute of this offering is the large underlying land holding of 1735 sq m which brings with it a multitude of future development and add value options to take full advantage of this under-developed site,” says Bayleys’ senior commercial broker Alan Haydock.
He is marketing the property, which is up for sale by tender closing 4.00pm on August 7 (unless sold prior), in conjunction with Bayleys Auckland City & Fringe colleague Damien Bullick and Ryan Johnson, Bayleys’ national director commercial and industrial.
“The site has approximately 34 metres of frontage to Broadway and offers fantastic visibility to both the popular retail strip and also the Khyber Pass Rd intersection which it is located close to,” Haydock says. “The land is zoned Business – Metropolitan Centre, which is the most intensive zoning in the city fringe with both commercial and residential development being permitted up to height of approximately 30 metres in the case of this property.”
Damien Bullick says the property features a good mix of tenants including retailers, food and beverage businesses and office users.
He says the existing building on the site was originally constructed in the 1970s and underwent a comprehensive refurbishment in 2008. The retail portion of the property totals approximately 665 square metres and is occupied by Flight Centre, Modes bridal and eventwear, a Movenpick ice cream outlet, Medicines to Midnight Pharmacy and the Oriental Tea Shop.
“The lease terms for the five retail tenancies range from four to eight years, all with rights of renewal some of which have already been exercised,” says Bullick. “There is a good spread of final lease term expiries up until 2033 and two of the leases have fixed annual rental increases of 2.5 and three percent respectively.”
The remaining tenancies comprise office suites and further space occupied by Modes Bridal and total approximately 800 sq m. Bullick says the majority of these are located around an attractive, shared rear internal courtyard and are mostly single level, with a small number of the office tenancies occupying a level 1 position.
The property also has access through a door to a public car park which provides a mixture of long term and short term car parking.
Haydock says 154-168 Broadway is situated towards the Parnell end of Broadway, in a very popular, well established city fringe position.
“Newmarket has long been regarded as one of the prime retail districts of Auckland and has attracted a range of high profile national and international retailers because it has the highest pedestrian volumes outside of the Auckland CBD.
“Long term confidence in Newmarket retail is highlighted by a number of major developments including Scentre Group’s current $800 million Westfield mall redevelopment and expansion at nearby 277 Broadway, which which will be anchored by David Jones’ first Auckland department store and a new Countdown supermarket. When completed it will be one of the biggest shopping mall complexes in the Southern Hemisphere.
“Newmarket is also an increasingly popular office location, with Mercury Energy’s recently completed new head office building, a short walk away, adding another A grade office building to the precinct. This building combined with the recently built Watercare building and the continued development of the Auckland University’s nearby 5.2ha site on Khyber Pass Rd are providing a critical mass of workers which will further strengthen the precinct’s retail performance,” says Haydock.
“154-168 Broadway is well positioned to take advantage of Newmarket’s ongoing regeneration, which also includes considerable residential development, and is worthy of consideration by investors, developers and land bankers.”