Grand building with colourful past seeks new owner and new direction...

A striking Auckland architectural landmark on the corner of Broadway and Khyber Pass Road - which cost a total of £4700 when it was built in 1887 - is up for tender with Bayleys.

Marketed by Clint Barber and Ed Donald of Bayleys, 489 Khyber Pass Road is better known as The Carlton and comprises a well-maintained standalone two level retail/hospitality complex of approximately 705sq m on a 531sq m site (more or less).
“This is a grand old building that lends itself to refurbishment and a new identity. A savvy investor with a desire to hold property in Newmarket will see the potential the property offers and appreciate the significance of owning a piece of Auckland history in such a strategic location,” says Barber.

As licensed premises, the building has undergone at least four name changes since its original construction in 1887. Designed by noted architectural firm Edward Mahoney & Son and constructed by prolific local builder William Edgerley, the hotel was first known as The Jubilee Hotel, in a nod to Queen Victoria’s 50th Jubilee that year. It was instigated by successful small brewer William J Suiter - the first Mayor of Newmarket Borough - and his brewery company.

The property currently houses the Carlton Bar with the existing lease on the building to Carlton Bar and Brasserie (1994) Ltd, expiring on 21 October 2010 and an annual guaranteed rent of $300,975.39 including gst.

“The appeal for a confident investor is that the property has a year’s holding income allowing time for new plans and ideas to be consolidated and then pursued through the usual channels,” says Barber.

“The real potential for this property lies in converting it into a multi-tenancy to capitalise on the location and the boutique space that the building offers. Given the corner position it occupies, the property benefits from exposure to both Broadway and Khyber Pass Road with significant traffic flows at this junction.”

The Carlton Hotel is opposite the five hectare former Lion Nathan NZ site in Khyber Pass Road which was bought by Australian insurance firm AMP who are said to be planning to develop a high-density apartment, shopping and retirement precinct on the land.

Based on architectural plans provided, net lettable areas provide ground level space of 401.3sq m with a courtyard of a further 61.8sq m. On the first floor there is a total of 182.7sq m and a mezzanine balcony offering 20sq m.

“The ground floor enjoys excellent exposure to both Broadway and Khyber Pass Road and the first floor has its own entrance direct to Broadway. A recent annex at the rear of the property - which currently houses the gaming machines for the Carlton bar – fronts on to Osborne Street,” explains Barber.

“As part of the wider Newmarket revitalisation programme, the Council is upgrading Osborne Street to include wider footpaths, trees and street furniture. It would perhaps be feasible to open up the back of the building and have a smart cafe offering al fresco dining to take advantage of this.”

This is a progressive part of Newmarket, with the former Hayes Metal Refinery on Osborne Street currently being fitted out with boutique stores with several expected to be open in spring. Many established brands are confirmed to move in to these premises along with a number of new businesses to Newmarket.
The property is zoned Business 3 under the Auckland District Plan Isthmus Section Operative 1999 and is subject to a proposed plan modification under the Newmarket Centre Plan which allows for a wide range of permitted uses.

Further notes of interest:
Tenders close 10 September.
Architectural firm Edward Mahoney & Son won a competition for the design of Auckland’s Customhouse (1888) - now home to Galleria in central Auckland - and also designed the Elliot Street facade of Smith and Caughey (1910) and the Wrights Building (1911).

The Newmarket Borough Council proposed that a statue of the Queen should be erected on top of the front corner of the hotel in preparation for Jubilee celebrations; however, this was later changed to erecting a town clock instead.

At one stage, there were 18 breweries in Khyber Pass Road.