A prominent car park building in Newmarket’s highly sought-after retail precinct will appeal to a wide range of buyers looking to secure a premier asset with substantial rental income and long-term growth potential.
5-11 Kent Street and 10-12 Teed Street is a purpose-built four-level car park building with a retail plaza on the ground floor sitting on a sizeable 3288sq m freehold site that is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan.
The ground floor retail offering provides 2051sq m of total net lettable area, which complements the 330 car parks above. The total combined net annual rental income from the property is approximately $2.85 million.
The property has 42m of frontage to Kent Street and 53m of frontage to Teed Street and is located near a host of popular amenities, including Westfield Newmarket, which is one of Auckland’s newest and largest shopping and entertainment centres.
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Colliers directors Blair Peterken, Richard Kirke, and Peter Herdson have been exclusively appointed to market the property for sale via an international expressions of interest campaign closing at 4pm on Wednesday 30 March, unless sold prior.
There are 23 ground floor retail tenancies providing a diverse mixture of businesses, which accounts for 55 per cent of the overall rental income.
Tournament Parking, which owns and operates 10 parking facilities across the greater Auckland region, is the car park tenant.
Peterken, Director of Capital Markets at Colliers, says this property will undoubtedly be one of the most sought-after opportunities in Auckland this year.
“Newmarket, and in particular this location within Newmarket, is one of Auckland’s busiest commercial and retail hubs and features a number of prominent corporate businesses,” Peterken says.
“It is incredibly rare to see an asset of this size in this location come to the open market. This building has proven resilient during the challenging trading conditions presented by the Covid-19 pandemic.
“The surrounding area has seen a resurgence of commercial and retail growth, including the completed large-scale office development at 33 Broadway and the planned office developments at 47 and 49 George Street, and 110 Carlton Gore Road.
“It’s hard to picture a better location in Newmarket than where this high-profile property sits, and it enjoys excellent street frontage.”
Kirke, International Sales Director of Capital Markets at Colliers, says the property’s Metropolitan Centre zoning will offer flexibility to the new owner.
“While the building provides a large income stream through the existing car parks and retail tenancies, there is huge potential to redevelop the property over time,” Kirke says.
“This could see a developer build upwards or intensify the usage of the site to maximise the potential of this unique asset.
“Newmarket is a dynamic commercial environment with excellent proven value growth over time. According to research conducted by Colliers, office rental rates in Newmarket have risen over 20 per cent during the past five years.”
The building is strategically located in the highly desirable Double Grammar Zone and is close to a range of prestigious private and prep schools, while the University of Auckland’s Newmarket and Grafton campuses are within walking distance.
Public transport is easily accessible in Newmarket, including the train station and multiple bus routes, while State Highway 1 is nearby and offers connectivity north and south.
Herdson, National Director of Capital Markets at Colliers, says this property shapes as a highly impressive offering.
“There’s a range of pertinent factors in play here that add to the appeal of this asset, but it is rare to see the combination of scale, income, and growth potential all rolled together in the heart of Newmarket,” Herdson says.
“We expect there will be significant interest in this high-quality property and encourage all interested parties to do their due diligence and contact us immediately.”
- Article supplied by Colliers
