On the market for the first time in 19 years

29-Nov-2016 11:21:32

newton road 2.jpgIt is not surprising 74 Newton Road has been owned by the same family for over 19 years.

Sitting on 2,113m² of land, the freehold standalone building currently returns $660,000 per year from tenants.

It is strategically located on an elevated site which fronts onto the busy Newton Road and has superb visibility onto State Highway 16 and the north-western motorway.

Offered for sale by negotiation, Dave Lane of NAI Harcourts North Shore says it is an excellent split risk investment, with three current tenancies – Golf Warehouse, Just Laptops and the Christmas Parade.

Golf Warehouse, New Zealand's leading golf retailer occupies a substantial bulk retail and administration area. The operation is their flagship superstore and it has become a local landmark. An additional separate retail tenancy on the same level is occupied by Just Laptops. 

To the rear of the property, with dual entry from Randolph Street, is a full level high stud warehouse storage area, partly occupied by Golf Warehouse with the balance to the Christmas Parade.

Lane says in this desirable location, there is also the potential for rental growth.

The building was constructed in 1977 as a head office, retail and distribution centre for Passmores Liquor.

The vendor confirms that records show the super structure of the building is a reinforced concrete frame with a steel portal roof structure. The floors are supported by precast double-tee spanning members and most walls are infilled with double skin concrete block.

The property receives a huge amount of exposure, which is unmatched by any neighbouring commercial properties, which include warehouses, retail and office space.

“The property abuts the north-western cycleway. Since this is owned by the council, the exposure is unlikely to be lost from the site,” Lane says.

Newton Road is the main service road from Ponsonby/ Grey Lynn to Eden Terrace, and approximately 100m down the road are the on and off ramps for the north-western motorway.

Under the Auckland Unitary Plan, the property sits in a business mixed use zone, which using the height variation control will allow for development up to 32.5m. 

Golf Warehouse is New Zealand’s largest golf retailer and holds a 10-year tenancy. Rent paid is $400,000 per year plus GST and outgoings.

It occupies 1,826m² of the building, including office, basement storage and part use of the high stud warehouse.

The Christmas Parade rents 1,563m² of the high stud warehouse, as storage for some of the equipment and floats used in the annual Farmers Santa Parade on Queen Street. Lane says 74 Newton Road is considered essential to the continuation of the Santa Parade.

Rent paid is $200,000 per year plus GST.

Finally, Just Laptops takes up 229.5m² of retail and office space and have advised the location works well for them.

Outgoings are 100% recoverable from the Golf Warehouse including council rates and building insurance.

In addition, there is income generated from signage billboards fronting Newton Road. Phantom Billstickers are taking advantage of the high exposure this location has to offer.

There are 26 on-site car parks offering good customer parking. This is a convenience that is not so common in the immediate location. In addition to the Newton Rd vehicle crossing there is also an easement in place allowing access from Cargill St.

Lane says at a time when commercial property listings are low, 74 Newton Road will be snapped up by a savvy investor.

“High profile location in busy area with secure tenants returning $666,000 per year. This property ticks all the boxes and I expect significant interest over the coming weeks.”

 

NAI Harcourts, Commercial Property, media release