Broadway property for sale
The anchor tenant at 136 Broadway is Ray White Newmarket. Photo / Supplied
A six-level commercial building in Newmarket’s commercial and retail precinct is for sale, offering future add value opportunities under its Metropolitan Centre zoning.
The 1400sq m building at 136 Broadway is on a high-profile 400sq m land holding in one of busiest parts of Newmarket’s main street, opposite its intersection with Khyber Pass.
Among more than 100 properties featured in Bayleys’ latest Total Property portfolio, it is for sale by international tender closing December 7, unless sold earlier, and is being marketed by James Chan, Oscar Kuang and Owen Ding of Bayleys’ International Division.
“This is an excellent opportunity to purchase a property with superb street profile along the main Broadway retail strip and which offers substantial holding income and future upside potential,” says Chan.
The 1980s building has a seismic assessment of 85.3 per cent of New Building Standard and provides secure basement parking for eight vehicles with five levels of retail and office space above.
Anchor occupant Ray White Newmarket (Core Group Realty Newmarket Ltd) has a five-year lease, plus one five-year right of renewal, from August 2017 over the high profile 265sq m ground floor. It also has building signage rights.
“The real estate agency not only benefits from a substantial frontage to one of Broadway’s highest pedestrian count areas but also from massive exposure to a pedestrian crossing from Khyber Pass as well as traffic turning right on to Broadway,” says Kuang.
“They took over the premises from ANZ Bank in 2012 and it’s obviously a location that has worked well for them because they have recently signed up for a further five years.”
There are three office tenants on the four levels above street level and the four existing tenancies are generating net annual passing income of $337,806. Kuang says the vendor is offering a rental guarantee on 521sq m of vacant office space for a period of up to two years, which would increase annual income to the purchaser to about $450,000.
“This would provide a considerable holding income while the new owner works on plans to refurbish, reconfigure and possibly extend the building’s upper levels,” says Kuang.
The property has a Metropolitan Centre zoning under the Auckland Unitary Plan and has a building height allowance of 28.5m.
Kuang says the Metropolitan Centre zoning is second only to the city centre in terms of the scale and intensity of development it allows. It provides for a wide range of activities including commercial, high density residential, leisure and tourist uses.
“The flexible zoning gives plenty of potential future options for 136 Broadway, including refurbishing the office space or converting it to boutique hotel or residential accommodation.”
He says concept plans have been drawn up for a further two floors of 275sq m each to be added on top of the building, although interested parties would need to undertake their own due diligence as to the feasibility of this.
Kuang says floor-to-ceiling curtain glazing provides good natural light for the upper levels and there are also balcony areas at both the front and rear of the building which increase its appeal for residential conversion as does its closeness to train and bus services and “double Grammar school” zoning.
Chan says the property’s strong location at the crossroads of two major arterials provides excellent access to Newmarket and the suburbs of Parnell, Remuera, Epsom and Grafton as well as the CBD and motorways.