Broadway building home to Route 66
The property at 180-182 Broadway has a weighted average lease term of four years. Photo / Supplied
A fully leased Mixed-Use investment property in the heart of Newmarket, earning about $763,000 a year, is on the market.
The seven-level retail and office building at 180-182 Broadway is best known to Aucklanders for housing the Kiwi denim store Route 66 and the lifelike statue of an American highway patrol officer standing guard outside.
Bayleys sales agent Alan Haydock says this is a high-profile building in a prime location in one Auckland’s most desirable commercial thoroughfares. It is in a high-foot traffic area surrounded by a mix of upmarket stores, cinemas and national and international retail brands.
“It has a total floor area of 2062sq m on 427sq m of land, offers a split income stream from multiple established tenants, and has a weighted average lease term of four years.”
Haydock adds that Newmarket continues to transform and develop, so there is potential for rental growth and to add value.
Haydock and Bayleys sales agent Damien Bullick are marketing the property for sale by tender, closing at 4pm on Wednesday, March 7 unless sold earlier.
The building, constructed in 2001 and has an A-plus seismic rating, features five levels of office accommodation above two double stud height retail spaces measuring 350sq m in total and a 109sq m basement used for storage.
Techtorium New Zealand Institute of Technology, a leading provider of IT courses and qualifications, occupies 1039sq m over three levels. It is on a six-year lease expiring on September 30, 2022.
The property is best known to Aucklanders for housing the Kiwi denim store Route 66. Photo / Supplied
The remaining two office levels — which each offer 282sq m of space — are leased to Super Liquor Holdings, which runs more 140 liquor stores across the country; and Edgewell Personal Care, which controls personal care and grooming brands Wilkinson Sword, Playtex and Banana Boat among others.
Super Liquor Holdings has a six-year lease expiring on May 31, 2024, with three three-year rights of renewal, while Edgewell Personal Care has a six-year lease expiring on May 31, 2024 with one three-year right of renewal.
The retail and basement storage areas — which have a total of 459sq m of space — are leased to clothing retailer Route 66 and juice bar Tank, with retail spots offering wide street frontage onto Broadway. Route 66 has a six-year lease expiring on March 31, 2022, with one six-year right of renewal while Tank has a six-year lease expiring on February 14, 2024.
The property, zoned Business-Metropolitan Centre, also benefits from 21 car parks on individual freehold unit titles, which are located in the neighbouring building at 118 Broadway, and a signage lease to APN Outdoor Limited, which expires in 2020 with one five-year right of renewal. The 8m x 6m sign is located on the Southern side of building and generates a net annual income of $51,147.
The office floors are serviced by a passenger lift and adjacent stairwell with each level having its own separate male and female toilets.
Haydock says office occupancy within the Newmarket precinct is at record levels, reflecting the high levels of demand for office accommodation in the centre.
Total occupied floor space surpassed 132,800sq m, according to the latest Bayleys’ vacancy study. “High occupancy rates are providing rental income growth for investors, as the development sector is some way off to fully catching up with demand for new premises.”
Bullick says Newmarket’s appeal is bolstered by the fact that it provides office occupiers with high levels of local amenities. “The area is one of the city’s premier shopping locations and offers a wide range of cafes, restaurants and bars,” he adds.
“The success of Newmarket as a high-end retail zone is influenced by a large working population in the immediate area containing about 20,000 employees; and the affluent nearby suburbs of Epsom, Remuera, Parnell and the Eastern Bays.
“There is significant development activity in the area. Scentre Group is embarking on a $600m makeover of its 277 Westfield mall and the University of Auckland’s construction of a 5.2ha campus on the former Lion Brewery site over the next decade will transform the area.”
The property is well served by public transport — both rail and bus — and is close to the intersection of two major central arterials, Broadway and Khyber Pass, and on-ramps to the Southern Motorway.