A multi-storey commercial building in the sought-after Auckland city fringe suburb of Newmarket is available for purchase presenting buyers with the chance to acquire a fully tenanted investment with strong returns.
12 Kent Street, Newmarket spans 1,409sq m spread across four levels on a 759sq m freehold site that is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan.
This zone applies to centres located in various subregional catchments across Auckland. These centres are second only to the city centre in scale and intensity, serving as focal points for community interaction, commercial growth, and development. They also contain key hubs for high-frequency transport.
The property generates an impressive annual income of approximately $655,136 plus GST and operating expenses from five established tenants.
Start your property search
The occupants include a restaurant, law firm, beauty salon, fund administration services provider, and food industry business, some of whom have been in the building for approximately 20 years.
The tenancies range in size from 181sq m to 467sq m and most of the lease agreements of the current occupants run through until 2028 and 2029, while one has recently extended until 2031.
With 32 on-site car parks, there is exceptional convenience for tenants who benefit from the accessibility of the property. This well-maintained asset is a strong performer and presents a split-risk investment opportunity that is not to be missed.
Colliers Directors Adam White and David Burley have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 26 March, unless sold prior.
As of July 2019, the building has an 85 per cent NBS rating, offering structural integrity and stability. The building’s construction features reinforced concrete foundations, concrete slab floors, a concrete beam and column structure, cement fibreboard exterior walls with a textured coating finish, and a long-run steel roof.
Recent refurbishments have made the building an attractive workspace that has proven functional for the existing tenants.
White, Associate Director of Investment Sales at Colliers, says the property gives prospective purchasers the chance to acquire a high-performing asset with longstanding occupants.
“Discerning investors will be attracted to the steady rental stream on offer that is underpinned by a strong tenant covenant across the property. Multiple tenants have enjoyed lengthy tenures in the building, underlining their commitment to the location,” White says.
“The lease agreements of the tenants include a mixture of fixed increases or CPI-related rises, indicating future rental growth is built-in, adding further appeal for buyers.”
Newmarket is one of Auckland’s most coveted locations that is home to an abundance of commercial and corporate operators, New Zealand fashion designers, local and international retailers, hospitality offerings, a vast array of fitness centres, and beauty outlets amongst other things.
It benefits from its proximity to Auckland CBD and access to the motorway network.
Burley, Auckland Director of Investment Sales at Colliers, says the strategic location of the subject property is a key selling point.
“Having access to multiple public transport options, including bus routes and rail, is hugely valuable for the tenants of the building and is complementary to the existing on-site car parking,” Burley says.
“With Westfield Newmarket only a few minutes away, the surrounding area provides all of the key amenities and makes Newmarket such a popular location.
“Having the chance to purchase a fully tenanted building in this outstanding location will appeal to a wide pool of buyers.”
- Supplied by Colliers
