Newmarket retail unit leased to EGG for sale

The 116sq m stratum-in-freehold property comprises Unit A and Accessory Unit 1 at 2A Balm Street and is only about 70 metres from the Newmarket retail precinct and the popular Westfield 277 complex.  Other businesses in the area include the medical services precinct to the eastern end of St Marks Road and stretching along Remuera Road.

"The property is surrounded by the upmarket residential suburbs of Remuera to the east and Epsom to the south and west," says Andrew Clark of Barfoot & Thompson Commercial who, with colleague Cam Paterson, is marketing the retail property for sale by tender closing at 2pm next Wednesday July 27 unless it sells earlier by negotiation.

Frontage

Clark says the shop has an 11 metre frontage where the main retail area is located which features full height glazed windows and swing doors.  An office, changing areas, toilet and a storeroom are to the rear of the building.

The land on which the building is situated is 1581sq m in area with a frontage of 28 metres to Balm St and 54 metres to Nuffield St. "This large parcel is flat and offers definite development opportunity in the future if the strata titles are amalgamated," Clark says.

The retail unit itself has a broad circa 11 metre frontage to Balm Street.  The tenancy has a single level covered car park which is located towards the front of the first floor of the building and accessed via a concrete ramp off Nuffield St or via a stairwell off Balm Street.

New Build Standard

Paterson says the parent building was constructed around 1947 as a laundry for the hospital and a search of council records and consultation with Heritage New Zealand has not identified any heritage issues.

"It appears to be in good condition having regard to its age and as verified by a detailed seismic report prepared by Eden Consultants Limited in February 2013 which concluded that the property is 100 per cent of New Build Standard," he says.

The street level retail space and car park is leased to The EGG Partnership, a single tenant, on a net lease basis for $93,613 per annum plus GST. The next lease review is January 31, 2020 with a right of renewal for a further four years and the next rent review is February 1, 2018, with the proviso that the rental cannot fall below the current rental. The tenant is responsible for 100 per cent of the outgoings relating to the premises and the lease is personally guaranteed.

Good arterial and road linkages

Paterson says the property benefits from good arterial and road linkages via Broadway, Great South Road and Remuera Road which are well-served by regular bus services. "It has excellent access to the southern flow of State Highway One via the St Marks Road on-ramp while northern motorway access is via the Gilles Avenue motorway on-ramp. The Newmarket railway station is about 200 metres north of the property.

Zoning

The property is zoned Business 3 (Newmarket growth Area) under the operative Auckland District Plan with the zoning providing for existing areas of significant and intensive business activity outside of the Auckland central area.

It is subject to plan modification No.196 - Newmarket Growth Area Structure Plan which aims "to foster the long term growth of, safety and vitality of Newmarket by encouraging an attractive mixed use environment that provides opportunities for new residences, live and work premises, businesses and shops". Permitted uses include offices and retail premises of less than 3000sq m entertainment, education, warehousing and storage.

The basic floor to height ratio is four metres in height to one metre of floor space and a maximum floor area ratio of five-to-one with a height limit of 33 metres. Under the Proposed Auckland Unitary Plan, the site is zoned Metropolitan Centre Newmarket with the permitted use and floor area ratio remaining unchanged.