A strategically located low-rise commercial office building in the sought-after central Auckland suburb of Newmarket is being put up for sale, offering buyers the opportunity to secure a prominent asset with multiple income streams.
18 Broadway, Newmarket has 999sq m of total net lettable area on an 861sq m site that is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.
The property is home to anchor tenant Blackmore Virtue & Owens, an established accountancy firm who lease the entire second floor of the building, which spans 567sq m. The first floor houses a collection of smaller office tenants under a ‘shared space’ occupancy arrangement.
The property provides passing income of approximately $355,878 plus GST per annum.
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With car parking available for most tenants, the property offers convenience for occupants who are located in one of Auckland’s most desirable suburbs that has an abundance of amenities, including Westfield Newmarket, which is within walking distance.
There is also a range of bus routes and the Newmarket train station nearby, while the motorway network is readily accessible.
Colliers Directors David Burley, Matt Prentice, and Shoneet Chand have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 15 November, unless sold prior.
The building was originally constructed as two structures and subsequently bridged into contiguous office space. With 27m of road frontage to Broadway, the site is highly visible.
Blackmore Virtue & Owens’ current three-year lease expires in August 2024. They have access to 20 of the 32 on-site car parks, while the majority of the other leases are on rolling or short-term agreements spanning six months to two years.
Burley, Associate Director of Investment Sales at Colliers, says the property has a strong tenant profile.
“This is a prime split-risk investment opportunity, and the building has recently been refurbished to modern standards, offering functionality and convenience for the existing occupants,” Burley says.
“While the building offers a steady rental stream there is room to grow the rental income given there is a small number of available spaces on Level 1.
“The property will also appeal to owner-occupiers who could potentially acquire the property to move in at the conclusion of the Blackmore Virtue & Owens lease or occupy both levels if that would better suit their requirements.”
Prentice, Director of Sales and Leasing at Colliers, says Newmarket has long been one of the most desirable city fringe suburbs in Auckland.
“In the immediate vicinity of the building there’s a resurgence of commercial growth, including the large-scale office development at 33 Broadway and further office developments on George Street and Carlton Gore Road that are either in the planning or construction stages,” Prentice says.
“There is also a range of residential developments in the surrounding area, adding to the growth of Newmarket.”
Chand, Director of Investment Sales at Colliers, says the flexible zoning of the property offers long-term potential.
“The Business – Mixed Use Zone is typically located around centres and along corridors served by public transport. It also applies to areas where there is a need for a compatible mix of residential and employment activities,” Chand says.
“The zone provides for residential activity as well as predominantly smaller scale commercial activity that does not cumulatively affect the function, role, and amenity of centres.
“There is a range of possible building heights depending on the context. Provisions typically enable heights up to four storeys meaning the new owner will have a range of options at their disposal for the future of this property.”
- Article supplied by Colliers
