Offering ‘won’t last too long’ on Broadway
The property at 128 Broadway has redevelopment potential. Photo / Supplied
A prominent six-level Newmarket building in the heart of the Broadway commercial precinct is for sale, offering significant immediate cashflow and the opportunity to add value in the longer term.
Located at 128 Broadway, the offering provides five levels of office space and three ground floor residential tenancies with a net lettable area of 1436sq m plus 20 secure internal carparks.
Featured in Bayleys’ latest Total Property portfolio, the property is for sale by international tender, closing May 19. It is being marketed by James Chan and Owen Ding of Bayleys’ International Division in conjunction with Bayleys Auckland office specialist Andre Siegert.
Chan says the property is offered on a fully leased basis, providing initial annual rental income of about $535,000 net.
This will be generated by four separate leases on the upper four office levels, a two-year vendor rental underwrite on one vacant office floor and also on the ground floor retail area which has a vacant tenancy.
“This offering provides purchasers with an excellent opportunity to secure a prominent Newmarket office and retail building in a highly visible location with a good spread of investment risk across a range of tenancies on varying lease terms,” says Chan.
“It’s an attractive building with feature glazing on the upper levels providing good natural light for tenants and a pleasant outlook over Lumsden Green, an area of open public space on the other side of Broadway where it intersects with Khyber Pass.
“The building has also been solidly constructed and has a seismic rating 100 per cent of NBS (New Building Standard).”
Siegert says the office floor areas of around 242sq m offer smaller business the opportunity to exclusively occupy a full floor which is what has happened with the top four levels of 128 Broadway, occupied by:
- NZ House China, which also has building signage rights. It services New Zealand businesses wanting to export their products and/or services to China, managing every part of the process from intellectual property to packaging and distribution. It also supports companies looking to import from China.
- Prudential Law: a specialist property, commercial law and trust firm founded in 2006.
- Spx Flow Technology: infrastructure equipment manufacturer and supplier, listed on the New York stock exchange and with over 8000 employees in more than 35 countries.
- Medcall Health Personnel: A specialist health sector consultancy firm focused on the recruitment and placement of temporary and permanent staff.
There are also two ground floor tenants:
- Female apparel retailer Modes Eventwear, which has been specialising in ball, wedding and occasion wear in Newmarket for more than 20 years; and
- Eternity Nails which operates a beauty salon specialising in acrylic nails and waxing.
Siegert says lease terms range from two-to-seven years, with a range of expiry dates and rights of renewal.
Chan say the property is strongly located opposite the cross roads of two major arterials, Broadway and Khyber Pass, providing excellent access to all that Newmarket has to offer plus the surrounding suburbs of Parnell, Remuera, Epsom and Grafton as well as the CBD, southern, northern and northwestern motorways.
“128 Broadway is next to a Wilsons parking building and well serviced by bus and train services; Newmarket train station is a short walk away.”
Chan says further development close to the property is likely, including: Auckland University’s continuing development of its Newmarket campus on the 5.2ha former Lion Brewery site in Khyber Pass and Mansons building of Mercury Energy’s new two-building headquarters complex at 33 Broadway. The Warehouse Group recently sold its property at 66-80 Broadway to a developer, for $65m.
Chan says 128 Broadway itself has add-value redevelopment potential in the longer term.
“It could be possible to convert it to another use such as apartments or a hotel, or a mix of uses with retail and perhaps office on the lower levels and apartments above. This is definitely the way of the future for Newmarket with a mix of commercial and residential premises becoming more apparent.”
The property is zoned Business Metropolitan Centre Zoning under the Auckland Unitary Plan which permits buildings up to 72.5m (18 storeys).