Prime property stars on Broadway
The four level building for sale at 238 Broadway, Newmarket.
A four level standalone retail and office building with a split income stream from multiple tenants is for sale in the heart of the Newmarket business district.
“This is a fully leased building with ground floor shops having frontages directly onto Broadway,” says John Stringer of Barfoot & Thompson Commercial who, with colleague Murray Tomlinson, is marketing 238 Broadway for sale by tender closing at 4 pm on Thursday July 30 unless it sells earlier by negotiation.
Stringer says the building generates $339,747 per annum plus GST and operating expenses from leases to six tenants.
“This is a high profile building in an outstanding location in one Auckland’s most desirable commercial thoroughfares. In addition it has recently undergone a substantial refurbishment resulting in a modern stylish appearance and an increase in its seismic rating to 60 per cent of Initial Evaluation Procedure [IEP].”
Stringer says the vendor has been advised that the IEP could be increased to 71 per cent at a cost of $300 per sq m or $172,500.
The building has a total lettable area of 569.1 sq m and occupies a land area of 173 sq m. It is zoned Business 3 under the Auckland Council’s operative plan and Business Metropolitan Centre under the Proposed Auckland Unitary Plan (PAUP).
The relatively flat site has a frontage to Broadway of 8.43 metres and a depth of 20.39 metres.
Stringer says the building, constructed around 1964, has its ground floor occupied by shops retail outlets and the first floor, second floor and third floors used as offices.
Its key construction materials consist of reinforced concrete slab, beams, frames and suspended floors, with concrete block infill panels and reinforced concrete veranda.
The street level ground floor of 145.6 sq m accessed off Broadway is split between two retail tenancies of Lush and Augustine.
Lush sells a range of products including soaps, shower gels, shampoo and hand
and body lotions for various skin types. The firm has three locations in Auckland,
and nine shops throughout New Zealand. Headquartered in the United Kingdom is has over 800 stores in 51 countries. The shop of 62.6 sq m generates a net annual rental of $112,081 on an eight year lease commencing August 2008.
The Lush and Augustine retail outlets have street entrances on Broadway.
Augustine was established in 2008 to fill the gap in the market for special occasion wear for women who wanted stylish, unique and original clothing at an affordable price. Later introducing the casual sister label ‘Charlo’ the company has another store in Ponsonby and a third in Mt Maunganui.
The 83 sq m shop earns $83,000 annually from a three year lease commencing June 2013 with one four-year right of renewal.
The three office levels above are leased to Hospoworld Resourcing Ltd, a niche recruitment agency; Loansmart, a boutique finance company; the Newmarket Business Association and
APN Outdoor Group Limited is a publicly listed billboard company on the Australian Stock Exchange with 36,000 outdoor sites over Australia and New Zealand and two billboards on site at 238 Broadway.
The four tenants are on terms varying from four to six years and final expiries with renewals of 2018 to 2020. The first floor has a net lettable area of 137.5 sq m while the second and third floors are both 143 sq m.
Tomlinson says public access to the office floors is at the rear of the property via a walkway off Broadway which leads to the train station situated immediately behind the property. The office floors are serviced by a passenger lift and adjacent stairwell with each level having its own separate male and female toilets.
“Landlord owned fixtures and fittings include air-conditioning, floor coverings and lighting,” Tomlinson says. “The offices are largely open plan with level one having a large boardroom. Level three has a double height space creating volume and space with large windows overlooking Broadway providing good natural lighting and a nice outlook.
“The building is in a strategic position on the eastern side of Broadway opposite Teed Street and just down the road from the popular Two Double Seven Shopping Centre.” Tomlinson says. “It is in a high foot traffic area surrounded by a mix of upmarket stores, cinemas and national and international retail brands.
“The bus interchange and motorway entrances are nearby and there is a large Wilson carpark at the rear of the property. In addition three large public car parking facilities are within a five minute walk of the property,” Tomlinson says.
What’s on offer?
The property: Four level retail and office building.
Location: 238 Broadway, Newmarket.
Agency: Barfoot & Thompson Commercial.
Sales method: Tender closing at 4 pm on Thursday July 30.
- Fully leased to six tenants.
- Earns rent of $339,747 pa.
- Net lettable area of 569.1 sq m.
- Freehold site of 173 sq m.
- High traffic shopping area.
From left to right: John Stringer & Murray Tomlinson of Barfoot & Thompson.