Office building in popular Newmarket
Freemasons House, Newmarket, is occupied by five separate tenants.
An office investment property on the Newmarket fringe is expected to be keenly sought after due to its prime location and modern condition, say brokers marketing the sale.
Freemasons House at 17 Great South Rd, Newmarket, Auckland, is occupied by five tenants.
It is for sale through John Davies and Kris Ongley of Colliers International, by deadline private treaty closing on August 4.
Davies says the building is in a highly desirable, low-vacancy area, which will appeal to investors.
“This is a seldom-available opportunity for an investor to acquire a very well-presented property asset in the tightly-held Newmarket/Great South Rd business precinct.”
The three-level building has a net lettable floor area of 779sq m with 22 car parks and generates net annual passing income of $160,727.
Once fully leased, the property has the potential to generate an annual income closer to $250,000, says Ongley.
“It is in a highly-visible position on Great South Rd on the edge of the Newmarket central business district.
“For investors looking for a high-profile holding to add to their property portfolios, this building will be considered a desirable asset given its prominent position on a major traffic route at the southern gateway to the Newmarket business precinct.”
The scarcity of prime investment properties in the immediate area, coupled with the pace of development in Newmarket, will also be a strong drawcard for buyers, Ongley adds.
“The Newmarket end of Great South Road has always been a desirable area for property investors, given Newmarket’s status as one of Auckland’s premier city fringe retail and office locations,” he says.
The property’s split-risk income stream will also appeal to buyers, Davies says.
“Assets with multiple leases are always popular with investors, due to the reduced income risk. This property’s five existing tenants provide a solid income, along with strong potential to increase the property’s rent roll through leasing a small vacant portion in the building.”
The building was built about 1976, with a significant refurbishment carried out in 2007 including a full internal and external renovation, new lift, air conditioning system and roof, and resurfacing of the car park. It has a 69 per cent (B grade) New Building Standard seismic rating, according to a 2016 IEP.
Its well-maintained and presented office spaces are home to high-quality tenants, including fashion industry recruitment specialist Rag trade, recruitment and information technology company Biztech and office products and hand tools importer Acme Supplies.
The property occupies a flat 676sq m freehold site within an easy walk of Newmarket’s shops and cafes. Other occupiers in the immediate vicinity include high-end furniture showrooms and upmarket vehicle sales, with Continental Cars opposite and BMW and SpazioCasa next door.
“This is a high-profile address less than 200 metres from the major intersection of Great South Road, Broadway, Manukau Road, St Marks Road and Gillies Ave. This roading access, as well as motorway on and off-ramps, have resulted in this area becoming a very busy and popular business location.”
“Staff love Newmarket as a convenient location to work, with numerous shopping, eating and entertainment options, bus routes and the revamped railway station,” Ongley says.
Newmarket’s urban renewal is gathering pace with several major projects completed in recent years and more either underway or planned. These include the redevelopment of the Teed St precinct, the University of Auckland's campus development on the former Lion Brewery site and the proposed Westfield mall expansion, Davies says.
“The University of Auckland’s redevelopment of the Lion Brewery site over the next decade is a significant catalyst to further improvement in Newmarket. Westfield’s proposed mall development on the Farmers site opposite the existing 277 Broadway mall will also provide a major boost.”
17 Great South Road is earmarked for Mixed Use zoning under the Proposed Auckland Unitary Plan, reflecting the Newmarket area’s future as a combined residential and commercial centre.