Victoria Markets retail outlets on the market

"Potential buyers are invited to tender for the remaining significant package of properties comprising a 39.6 per cent ownership interest or the individual units," says Duane Mullooly commercial sales broker of Barfoot & Thompson Commercial who, with colleague Reese Barragar, is marketing a total of 1846 sq m of prime freehold retail space for sale by tenders closing at 4 pm on Wednesday February 24.  

"The sale represents an opportunity for investors or owner-occupiers to add value, operate their own businesses or lease out the units which had a combined rating value of $13,450,000 at July 2014," Mullooly says.  

Three of the units are already providing holding income from fixed term tenancies while the remainder come with vacant possession or have casual pop up tenancies. The mix of character and newly-built stratum in freehold retail units each has its own power and water meter.

"While they may have been previously viewed as being out of way on the city fringe, the Victoria Park Markets are now in a high growth area that is undergoing significant development," says Mullooly.  

Nearby developments and businesses include NZME’s newly opened building at 151 Victoria St West, the Spark (former Telecom) four-building complex also in Victoria St, Goodman's new VXV Wynyard quarter development in which Fonterra’s new headquarters office park figures prominently and in which the Datacom Building and Bayleys House now under construction; the Vodafone Building which is earmarked for a major renovation, the Air New Zealand head office building across Victoria Park, TCLM Mansons’ new Boutique apartment complex at 206 Victoria St West, the revitalised City Works Depot, a Les Mills fitness centre and the Sale St apartments. 

Location

"The area is only a 10 minute walk from downtown Auckland and close to all major arterial routes with regular bus services to the suburbs immediately outside," says Mullooly.

Victoria Park Markets at 210-218 Victoria Street West have a heritage place overlay and were recently redeveloped with the Central Pavilion being one of the newest buildings constructed. The complex has an 85 to 100 per cent New Building Standard (NBS) seismic rating equating to an A-B grade rating.  

Located next to Victoria Park, from which it gets its name, the complex is bordered by Victoria Street West, Union St and Drake St.

Built 100 years ago, Victoria Park Market comprises the oldest example of Victorian industrial buildings still standing in the central city. The site was formerly a waste depot with an incinerator and the still-standing distinctive brick chimney employed to burn the city’s refuse. The heat was briefly used to drive a power generator in the early 1900s and the complex encompassed stables for more than 90 horses which hauled the city’s rubbish wagons.

The original Victoria Park Market was developed in the 1980s by Alistair Johnston who took inspiration from ‘festival markets’ in the United States, in which people traded from pushcarts.

Barragar says the immediate surroundings are undergoing significant residential and commercial development. "It’s a location that’s seen to be a desirable environment for young professionals or empty-nesters who like being close to the CBD and on major transport routes. Residents are also attracted by the trendy retail and commercial centres of nearby Freemans Bay, Ponsonby and The Viaduct with their numerous cafes, restaurants, bars and other amenities.

"We believe the precinct will see increased residential density as it develops and this in turn, will result in increased retail demand as the location gains further momentum."

Barragar says the State Highway One north-south motorway and northwestern SH 16 motorway on-ramps are less than a kilometre from Victoria Park Markets while Auckland’s rail CBD hub is 1.6 kilometres away at the Britomart Transport Centre. "Overall, this is a very convenient location."

Zoning

The property is zoned Victoria Park Precinct, Strategic Management Area 3 under the current Auckland City District Plan which allows for a wide range of activities, including office, retail and hospitality outlets.

The maximum height limit under the zoning is 16 metres but, under the Proposed Auckland Unitary Plan, the property will have a City Centre - Victoria Park Market Precinct zoning with the height limit increased to 30 metres.

"The proposed zoning seeks to ensure the city centre is an international centre for business and learning, innovation, entertainment, culture and urban living," Barragar says. "It also protects important historic heritage places, the admission of sunlight onto parks and public spaces, and significant views to Auckland’s volcanic cones and other landmarks."

Victoria Park Markets with an onsite management office and property manager are professionally managed by Barfoot & Thompson Commercial Property Management, led by Steve Sampson who is the head of asset management.