Newmarket asset ticks all the boxes
A prominent multi-level office and retail building on a high-profile corner site in sought-after 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 Rd is a five-level building providing 3790sq m of total net lettable area comprising three levels of office space, one floor of retail and one level of carparking.
The highly visible property sits on a strategically positioned 1166sq m freehold site zoned Business–Metropolitan Centre under the Auckland Unitary Plan and offers more than 70m of street frontage. The building has an 83 per cent NBS rating.
The site has a mixture of retail and office tenants with potential for rental growth given there is 467sq m of vacant office space with two carparks. The annual total passing income is $1,246,357 plus GST.
It is surrounded by significant retail, commercial and residential developments. It offers access to the nearby motorway network and key public transport links to all corners of Auckland.
Colliers directors David Burley and Blair Peterken 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 carparks. Its lease runs until 21 December 2022 and it has one further right of renewal for three years.
■ Ozac Architects is the Level 3 tenant and leases 967sq m of space and 12 carparks. Its six-year term expires in January 2024 and it has one further right of renewal for six years.
■ Nova Energy leases 966sq m on Level 4 and 12 carparks. Its current lease is in its final term and expires in January 2023.
■ Ground-floor retail tenancies are occupied by Chemist Plus, Beds4U and the Tokyo Food Co and span 228-375sq m.
All current retail tenants have further rights of renewals on their leases providing a strong tenant covenant for buyers.
Burley 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. Long-term, based on the favourable zoning, the property could be repositioned for many potential uses.”