The single-storey retail showroom and four-storey office/educational building for sale at 25-27 Crowhurst Street, Newmarket, sit on a large site with dual street access in a prime location within one of New Zealand’s premier retail and office districts.
Currently 76 percent leased, the property is anchored by a Bedpost outlet and the Wentworth Computer Science College, a satellite campus of prestigious Gulf Harbour-based private school Wentworth College.
The site generates total net rental income of $315,375 plus outgoings and GST per annum. A number of smaller vacant tenancies offer the potential to increase this by a further $147,000, according to a recent market rent appraisal.
The site’s high-density zoning also presents new owners with possibilities for a substantial multi-storey redevelopment.
The freehold land and buildings at 25-27 Crowhurst Street, Newmarket are being marketed for sale by James Chan, Quinn Ngo and Owen Ding of Bayleys Auckland Central. Sale will be by auction on Wednesday 15 December, unless the property is sold earlier.
Mr Chan said the property consisted of two buildings constructed around the 1960s with a total floor area of some 1,336 square metres on approximately 1,410 square metres of freehold land. The site contains 39 car parking spaces.
“At the Crowhurst Street frontage, the retail/showroom premises of some 240 square metres are leased to Bedpost. Established in 1991, Bedpost has some 15 locally owned and operated stores across New Zealand stocking beds, mattresses and bedroom furniture from a wide range of manufacturers,” said Mr Chan.
Bedpost’s tenancy generates net rental income of $105,000 plus outgoings and GST per annum, on a lease which runs through to 2028.
“To the rear of the site, with secondary access off Melrose Street, is a four-storey building containing multiple tenancies,” said Mr Chan.
“Approximately 410 square metres on the ground floor and level 2 is occupied by Wentworth Computer Science College, a co-educational, private secondary school specialising in computer science, digital technologies and STEM (Science, Technology, Engineering, and Mathematics) related subjects.”
The college pays annual rent of $96,915 plus outgoings and GST, on two leases running through to 2022 and 2024, each with rights of renewal extending to 2028.
A tenancy of some 254 square metres on level 3 is leased to after-school tutoring provider EduExperts. It pays $71,600 plus outgoings and expenses per annum on a lease extending to 2024, with a further three-year right of renewal.
The lease agreements provide for two-yearly rent reviews to CPI plus 3 percent.
Mr Ngo said developers would take a keen interest in the Crowhurst Street site due to its high-density zoning.
“The site lies within an area targeted for significant growth through its Business – Metropolitan Centre zoning under the Auckland Unitary Plan. This permits intensive development opportunities up to a maximum height of 72.5 metres, subject to resource and building consent.
“The Unitary Plan has introduced more intensive zoning for many properties in this area, encouraging the development of substantial buildings with a greater floor area and height.
“The zoning provides for a wide range of activities including commercial, medical, leisure and high-density residential development.”
Mr Ding said the Crowhurst Street site’s immediate surroundings were home to a vibrant mix of cafes, boutique business premises and residences. Nearby Broadway and the landmark Westfield Newmarket shopping mall were home to world-class shopping with leading local and international brands.
“Newmarket is also home to a growing list of major corporate offices, including Mercury Energy, Watercare, Fuji, Xerox and 2degrees,” said Mr Ding.
The site for sale benefits from excellent transport links, being just off Khyber Pass Road with a motorway on-ramp a few minutes’ drive away. It lies within a short walk of two train stations and the area is served by numerous bus routes.
The property has the added attraction of being in the sought-after ‘Double Grammar Zone’ for enrolment at Auckland Grammar and Epsom Girls’ Grammar schools, and close to other leading schools such as St Cuthbert’s College and Diocesan School for Girls.