Broadway unit ‘Pacs a punch’
The 508sq m strata unit is being sold with an existing nine-year-lease to Macpac. Photo / Supplied
Now listed for sale, brokers say Macpac’s Newmarket store building will appeal to investors looking for a solid asset in the prominent Auckland retail suburb.
The property — Unit G2 at 255 Broadway — is being marketed by John Davies, Dave Burley and Melissa He of Colliers International by deadline private treaty on March 9.
The substantial 508 sqm strata unit is being sold with an existing nine-year-lease to Macpac extending through to 2023, which includes fixed rental growth of 4 per cent per annum. The property currently generates a net annual rental income of $390,000.
Davies says this is a great opportunity for an investor looking for a solid asset in one the most prominent retail suburbs in Auckland.
“With still six and a half years to run on the lease to a well-known, internationally recognised tenant, the unit makes an outstanding passive investment.
“The property is extremely well presented and holds a prime street frontage of 6.8m to the most sought after stretch of Newmarket’s Broadway — only a few metres from one of Auckland’s most iconic shopping centres, Westfield, and between Just Jeans and Pascoes Jewellers.
“These attributes meet the key criteria that commercial property investors are looking for; including long-term increasing cash-flow, build quality, location and tenant covenant,” says Davies.
Originating in a Christchurch garage in 1973, Macpac now has 47 retail stores in Australasia along with international distribution through third party companies in Europe, United Kingdom, Japan and Chile.
Colliers’ national director of retail, Leroy Wolland, says retailer performance from specialty retailers remains strong in Auckland — evidenced by trade figures and consumer confidence.
“This is further verified by the positive performance of trans-Tasman retailers in New Zealand relative to their performance in Australia. Consequently demand from retailers for well-located premises in strong trading retail locations, such as this investment, is particularly strong,” says Wolland.
“Strong retail demand translates to growth in rental levels in these locations. Retail property investments have also been characterised by capital growth through a consistent firming of yields, particularly in the Auckland market, which remains a key focus for both domestic and internationally domiciled investors.”
The four-storey building was originally constructed in 1985 and Unit G2 is on the ground floor. The property has been well maintained and finished to a high standard. The building was given a seismic assessment in 2013 and it achieved an A grade IEP rating.
Burley says Newmarket’s status as one of New Zealand’s most prestigious suburbs — on the fringe of Auckland’s CBD — is only going to rise in popularity and property values, with decreasing investment sales opportunities.
“Newmarket’s high building density of retailers places it as New Zealand’s premier retailing area, and is a rival to the Auckland CBD. Its thriving café culture is a prominent attraction for Aucklanders.
“It has some of the country’s best bars, beautiful cafés with on and off street atmospheric seating, and fantastic restaurants and eateries.”
Burley says combining that with Newmarket’s fashion-leader status and entertainment choices such as theatre, film, and recreational activities, its desirability as a location is clear. “This is especially true for Broadway, with its larger shopping centres, smaller retail tenancies, two cinemas, and the newest Auckland University campus.”