A prominent multi-level office and retail building on a high-profile corner site in the sought-after city fringe suburb of Newmarket will appeal to buyers of all kinds looking to acquire a large-scale asset with significant rental income and long-term upside.
435 Khyber Pass Road, Newmarket is a five-level building providing 3,790sq m of total net lettable area comprising three levels of office space, one floor of retail, and one level of car parking.
The highly visible property sits on a strategically positioned 1,166sq m freehold site that is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan and offers more than 70m of street frontage. The building has an 83 per cent NBS rating.
The subject site has a mixture of retail and office tenants with potential for rental growth given there is 467sq m of vacant office space that comes with two car parks. The total passing income for the property is $1,246,357 plus GST per annum.
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The property is surrounded by a range of significant retail, commercial, and residential developments, while offering access to the nearby motorway network and key public transport links providing connectivity to all corners of Auckland.
Colliers Directors David Burley and Blair Peterken have been exclusively appointed to market the property for sale and are taking expressions of interest with the deadline for offers closing at 4pm on Wednesday 13 July, unless sold prior.
-Of the office tenants, Atlantis Healthcare leases 525sq m on Level 1 and has access to seven car parks. Their lease runs until 21 December 2022, and they have one further right of renewal for three years.
-Ozac Architects are the Level 3 tenant and lease 967sq m of space and 12 car parks. Their six-year term expires in January 2024, and they have one further right of renewal for six years.
-Nova Energy leases 966sq m on Level 4, and 12 car parks, and their current lease is in its final term and expires in January 2023.
-The ground floor retail tenancies are occupied by Chemist Plus, Beds4U, and the Tokyo Food Company and span from 228sq m to 375sq m.
All current retail tenants have further rights of renewals on their leases providing a strong tenant covenant for buyers.
Burley, Associate Director of Investment Sales at Colliers, says the property provides prospective purchasers the chance to secure a strategic asset that has future growth potential.
“This is a premier building with a complementary tenancy mix offering buyers the opportunity to grow their income stream through securing a new tenant for the property, while upcoming rental reviews will also provide incremental growth,” Burley says.
“Based on current market estimates, when fully tenanted, the property could return approximately $1,414,850 plus GST in net annual rental income per annum.
“Long-term, based on the favourable zoning, the property could be repositioned for many potential uses, including residential, commercial, retail, or other mixed-use options.”
Peterken, Director of Capital Markets at Colliers, says the property is perfectly positioned in one of the most tightly held parts of the city.
“Newmarket is one of Auckland’s most popular city fringe suburbs housing multitudes of businesses over the generations and has provided thousands of jobs to workers,” Peterken says.
“Its industrial past has morphed into a present day high-end urban town centre where you will find an abundance of commercial and corporate operators, New Zealand fashion designers, local and international retailers, hospitality outlets, a vast array of fitness centres, and beauty outlets, among other services.
“The refurbished Westfield Newmarket shopping centre is in walking distance offering fantastic shopping options in the area and we encourage all interested parties to contact us promptly.”
- Article supplied by Colliers
