High profile Epsom building

5:00 AM Saturday July 15, 2017 True Commercial

Brokers say the property at 57 Market Rd is a strategic landholding in a sought-after location. Photo / Supplied

A high-profile Auckland city fringe property, between Newmarket and the Southern Corridor, and with two tenants, has been put on the market.  

The 2147sq m property at 57 Market Rd, Epsom, is being marketed by Gareth Fraser, national director, international investment sales, and colleague Simon Child, a broker with Colliers International, who are selling it by a deadline private treaty process, closing August 3 unless it sells earlier by negotiation.

Fraser says the sale represents a superb opportunity to acquire a strategic landholding in a sought-after location with future redevelopment potential.

“This high-profile commercial building has appeal for value-add investors, owner-occupiers, or land bank developers seeking a long-term holding income,” he says.

It is next to the Remuera Train Station and two convenient Southern Motorway off-ramps. “It has 55 on-site car parks, including 35 covered and 20 uncovered parks.”

The property comprises a 1557sq m commercial building with an A-Grade seismic rating of 115 per cent of new building standards (NBS).

“The flexible building can be split across a number of tenancies, allowing investors to draw on multiple income streams,” Fraser says.

“Signage rights are also available, making this an excellent option for owner-occupiers.”

The property has two tenants — one on a long-term lease, and the other on a short-term lease providing a passing income. Long-term tenant Jetts Fitness, a provider of 24-hour health and fitness clubs, has just over a year remaining on its current eight-year lease, plus a seven-year right of renewal. The business is paying $105,961 net in annual rent.

“The company was founded in 2007 on the Gold Coast and now has more than 270 sites around the world.

The short-term tenant is the Electoral Commission. “The commission will use the building extensively throughout the September general election period, then vacate in December,” Fraser says.

“The lease is earning $503,928 gross plus GST in annual rent, providing an excellent source of passing income which makes this a great option for owner-occupiers who want to relocate to their new premises in the new year.”

Child says the location on Market Rd makes for excellent long-term investment and redevelopment.

“The city fringe is benefiting from Auckland’s strong growth, resulting in near record low office vacancies.

“Tenant demand for office space in metropolitan Auckland is at an eight-year high, with owner occupiers and investors driving a shortage of stock and competitive pricing.”

The property is zoned Business Local Centre under the Auckland Unitary Plan, offering increased flexibility and the potential for residential redevelopment.