A prominent standalone commercial building housing a business IT consultancy and a popular Chinese restaurant has been put up for sale in the fast-growing Newmarket commercial precinct.
The two-level freehold property at 60 Broadway, Newmarket, has been extensively refurbished to an A-grade asset. It is fully leased to three established businesses on long leases, generating total net rental income of $370,058 plus outgoings and GST per annum.
Some 415 square metres of office space on level one is leased to OneHQ NZ Limited, whose IT services have supported the growth of hundreds of New Zealand businesses. The company’s clients have included corporate travel tech giant Serko, global technology firm Advanced Aerospace and the Vodafone Events Centre.
OneHQ NZ pays annual rent of $154,095 plus outgoings and GST on a lease that runs through to 2024 with a further five-year right of renewal. The lease includes three-percent annual rent increases with a market review at renewal.
HK Cuisine Group Limited, trading as Chinese restaurant Guangzhou Hotpot, occupies some 362 square metres on the ground floor, generating net rental income of $163,962 plus outgoings and GST per annum. Its lease extends to 2029 and incorporates annual CPI rental increases with a market review at renewal.
Guards Fisheries Nelson Limited pays $52,000 plus outgoings and GST for some 77 square metres of ground-floor commercial space on a lease that extends to 2026, with annual rental increases to CPI.
The land and buildings at 60 Broadway, Newmarket, are now being marketed for sale by tender closing at 4pm on Tuesday 1 June (unless sold prior), through Bayleys Auckland Central.
Salespeople Phil Haydock and James Were said the building of approximately 854 square metres sat on some 455 square metres of freehold land with 12 metres of frontage at the Parnell end of Broadway.
Mr Haydock said the building was constructed in several stages during the 1950s and 1960s.
“It has been extensively refurbished recently, repositioning the property as an A-grade asset. These works included an all-new internal fitout, upgraded fire system, new ducted air-conditioning and new canopies to the Broadway frontage.
“Character elements such as exposed timber trusses have been carefully integrated with modern elements such as LED lighting and Japanese oak sarking. Full floor-to-ceiling glazing on both levels takes full advantage of the building’s street frontage,” Mr Haydock said.
Seismic upgrade works, including the addition of a new steel portal, sheer walls and horizontal ties between the concrete floor beams, have brought the building up to a seismic rating of 67 percent of new building standard.
Mr Haydock said the site’s Business – Metropolitan Centre zoning under the Auckland Unitary Plan supports growth and intensification in centres which are second only to the city centre.
“This zone allows wide-ranging activities including commercial office and high-density residential developments, along with leisure, tourist, cultural, community and civic services.
“Construction up to a height of 72.5 metres is generally allowed. However, this limit is reduced to approximately 18.5 to 20 metres due to a view shaft restriction,” said Mr Haydock.
Mr Were said the Broadway site was surrounded by some of New Zealand’s wealthiest suburbs, with the added advantage of sitting within the highly sought-after school zones for both Auckland Grammar and Epsom Girls Grammar.
“Combined with the site’s zoning allowance for residential uses, this is hugely supportive to the property’s long-term development potential and will help to underpin the expected capital growth from this strategic landholding.”
Mr Were said Newmarket had long been seen as one of Auckland’s prime retail districts.
“Broadway and the surrounding area have attracted a vast array of national and global retailers and enjoy the highest foot traffic volumes outside the Auckland CBD.
“Long-term confidence in Newmarket retail is demonstrated by numerous new developments, such as Scentre Group’s expansion of Westfield Newmarket Mall to create one of the largest shopping mall complexes in the Southern Hemisphere.
“Opposite the site for sale, the recently-constructed Mercury Energy building has added another A-grade office complex to the precinct. Other major additions include the Watercare building on Remuera Road, ongoing construction of the six-green-star One Ten Carlton Gore Road building and continuing development of the University of Auckland’s 5.2-hectare site on Khyber Pass Road.”
Mr Were said this activity further reinforced market confidence in the growing precinct as well as increasing the population of office workers which, in turn, would further boost local retail demand.
The Broadway property also had excellent access to wider catchments through its strong transport links, he said.
“The site is well positioned for public transport, with multiple bus routes and Newmarket Train Station within a short walk. Convenient motorway access offers connections to locations across Auckland, and the CBD is about a 10-minute drive away,” said Mr Were.