"It's situated on a relatively small freehold parcel on the sought-after Newmarket retail strip near the Parnell end. It's arguably located in the best street in Newmarket and the building is in a high-profile position."
A recently refurbished ground floor retail showroom is tenanted by German kitchen retailer Avant Garde Design on a six-year term started in October 2009 and generates net rent of $100,000 per annum.
Ongley says the first floor and a ground floor garage has been occupied by the association but it is offering the space vacant with the potential to add value through refurbishment.
"The upstairs of the building, totalling about 435sq m, comprises great space with scope for a stunning refurbishment. The new owner could lease it out and soon be generating a much larger cash flow.
"Alternatively, the building could be purchased by an owner-occupier who could occupy the top floor and use the ground floor garage, with the rent from the retail tenant supporting the property," Ongley says.
"The garage could also be converted to a small cafe or boutique retailer for further income."
Ongley says the property was re-roofed about five years ago. "The first floor features character timber flooring, gabled roof, skylights and big windows on two sides - all of which adds to its appeal. It is a voluminous space with a loft-like aspect and nice views out to the eastern suburbs."
The property is zoned for mixed use and an Auckland Council plan change applies to the site, enabling a maximum building height of 21 metres or up to five levels. Once the existing lease expires the property will have future development potential for residential uses.
"Developers are eyeing sites in this area for apartments or terraced housing, as the land lies within the Auckland Grammar school zone," Ongley says.
Kermode says Newmarket is a well-established commercial and residential centre with sound fundamentals. "We therefore expect strong interest in this property."
He says Newmarket attracts businesses such as accounting and law firms, architects and designers, boutique retailers, restaurants and cafes and it is very close to the site of a new Auckland University campus. Vacancies in the Newmarket office market are relatively low and rents are modestly increasing as the area begins to see renewed development.
The University of Auckland is building a new campus nearby on the former Lion Brewery site on Khyber Pass Rd, Newmarket, which is expected to enhance the retail destination due to a growth in the student population and associated services. The university development will spur on the continuing regeneration which has already been happening in areas such as lower Carlton Gore Rd, where several cafes and boutique retailers are now established.
"Newmarket is already a step ahead of other retail destinations due to its excellent public transport, which will in time be enhanced by the extension of the train network with the City Rail Link," Kermode says.
