Double office opportunity in Newmarket hub

The properties for sale at 24 and 36 McColl St, Newmarket. Photo / Supplied

Two tenanted Newmarket office properties in a sought-after commercial and residential precinct on Auckland's city fringe are being marketed for sale.

The properties, in McColl St, Newmarket, form part of the "Roxburgh Hub" - an area around Roxburgh St that is undergoing significant change and growth, and identified by Auckland City Council for intensive mixed-use commercial and residential development.

Each of the refurbished character properties has its own freehold title of 911sq m and 322sq m, providing a combined land area of 1233sq m, and net annual rental income of $222,811.

The properties are being marketed for sale, either individually or as a package, by Scott Kirk and Cameron Melhuish of Bayleys Auckland Central with a deadline of April 2.

Kirk says the "Roxburgh Hub" features a diverse range of businesses, including art galleries, architects, florist, furniture and design store, and a French deli, wine shop and patisserie.

"The location is just a short walk to Broadway, 277 Westfield, and the boutique shopping district on Teed St and Osbourne St."

The first building at 24 McColl St has a total floor area of 469sq m and has two established tenants: international clothing distributor True Alliance (NZ), and Watershed - a company which provides advice, support and services to the aquatics, recreation, and education industries across New Zealand.

True Alliance has a four-and-a-half year lease, with one six-year right of renewal, taking the potential tenancy to 2020. The annual net rental income is $58,776 plus GST.

Watershed has a four-year, 10-month lease, with two three-year rights of renewal, potentially taking the tenancy to 2020. The annual net rental income is $48,157 plus GST.

The second building at 26 McColl St has a total floor area of 575.3sq m and is also tenanted by True Alliance (NZ) which has a six-year lease, with one six-year right of renewal, taking the tenancy to 2020. The annual net rental income is $115,818 plus GST.

Kirk says the Newmarket location of the properties, as well as the long-term tenancies in place, should be attractive to investors as they offer good cashflow from tenants who have invested substantially in their own fitout.

He says Newmarket's office market has consistently been one of New Zealand's strongest performers.

"The anticipated adoption of Auckland City Council's Newmarket Growth Area Structure Plan - known as Plan Change 196 - will undoubtedly be a key driver of growth in the area."

The plan aims to increase both residential and commercial development in the Newmarket area, ensuring there are sufficient people and activities to support improved passenger transport and other services and activities.

"This more intensive development can only provide further growth prospects for this already popular and thriving location," Kirk says.