The prominent Newmarket retail/office building that was originally built for ASB in the 1980s is for sale, with its motivated vendor realigning a commercial property portfolio and keen to see a result.

Located at 136 Broadway, Newmarket opposite the junction with Khyber Pass Road, the six-level standalone building has secure holding income and future upside thanks to the favourable Business – Metropolitan Centre zoning which permits upwards development.

Occupying a freehold 400sqm site, the A-grade building has an IEP rating of 85.3 percent of new building standard and offers 1,402sqm lettable floor area with ground floor retail showroom space, four levels of office accommodation plus a basement with eight secure car parks that have direct access.

The ground floor tenancy is leased to a franchised RE/MAX real estate agency, and there are various office occupiers across the upper office levels including RE/MAX NZ head office which has signage rights. The property returns annual net holding income of $469.343 plus GST.

It is for sale by negotiation through Paul Dixon, Jack Kiely and James Chan of Bayleys.

Dixon says this is a premium Newmarket asset with plenty of potential to be unlocked and he encourages buyers to investigate the options.

“The building has good bones and really stands out along the commercial strip. It has traditionally been occupied by banks and real estate agencies, along with professional office tenants, but there is scope to reposition the asset in the market through a clever upgrade to the office accommodation or by taking a different path.

“The Business – Metropolitan Centre zoning, with additional height allowance, creates add-value opportunities for a proactive developer who could buy some time with the existing flexible holding income to formulate plans and get a new project underway.”

The revitalisation of Newmarket in recent years with the expanded and upgraded Westfield shopping centre and the character-filled and vibrant laneways precinct around Osborne and Teed Street, has given it a niche vibe, says Dixon.

“Newmarket has it all from high-end international retail brands to boutique stores with a real point of difference, and a raft of dining options. There has been some retail vacancy along Broadway as operators adjusted to the new economic reality, however, there are fewer ‘For Lease” signs up now with a number of pop-up retailers testing the waters.

“It’s long been a preferred office location because of the high level of amenity, transport connectivity advantages and convenient city-fringe position.

“There are no major new commercial developments underway in Newmarket and a buyer could arguably acquire 136 Broadway at a good price ahead of the next real estate cycle which should reboot investment and development off the back of lower interest rates and improving economic conditions.”

Kiely says the subject property is located in one of the most active sections of Broadway being at the juncture with Khyber Pass Road, with high exposure to passing traffic for strong branding profile.

“The building is in direct sight line of those waiting for a green light from Khyber Pass Road.

“It’s also five minutes’ walk from Newmarket train station, close to bus stops, and there’s a Wilsons carparking building nearby. From a staff commuting perspective and convenience, it’s ideal for businesses.”