The five storey freehold property for sale at 5-7 Vivian St has a diverse range of tenants. Photo / Supplied
The five storey freehold property for sale at 5-7 Vivian St has a diverse range of tenants. Photo / Supplied
A multi-tenanted commercial building in Te Aro, Wellington, is on the market, offering both investment and potential redevelopment options.
Colliers International brokers Sam McIlroy and Hamish Templeton are marketing the freehold property, at 5-7 Vivian St, for sale by deadline private treaty closing on July 26 at 4pm, unless it is sold before the deadline.
With seven commercial tenants in occupation, the property offers the buyer a strong and diversified cash flow of $323,923 net a year, as well as opportunities to add value, says McIlroy.
"The diverse range of tenants makes this property an excellent investment and there is scope for achieving an income uplift through reviewing the existing rents. The building is in a good location just off Cambridge Terrace and it has a very good leasing history, due to its affordable rentals and high ratio of car parks."
There are also plenty of options for the buyer to refurbish the building and potentially add value through a change of use in the future, he says.
"The property is a great candidate for renovation and also a change of use, because of its good northern aspect and the very high demand for inner-city living options in Te Aro.
"Buildings on the site can be up to a maximum height of 27 metres, which opens up lots of possibilities for residential or mixed-use developments."
The 1100sq m site includes a five-storey commercial building, a high stud warehouse to the rear of the property and 34 on-site car parks on three freehold titles. The car park area is of sufficient size to accommodate an additional building, which opens up further options for the purchaser, says Templeton.
The property is a great candidate for renovation and also a change of use. Photo / Supplied
"Land in this area is in very short supply so developers are increasingly looking at redeveloping existing buildings. With this trend in mind, this property will be considered a prime redevelopment opportunity, especially with the potential to significantly increase the floor area through increasing the buildings' height and/or constructing a new building on the car park."
Residential development is one sector where activity has noticeably increased in recent years, Templeton says.
"There is very high demand for quality inner city living and student accommodation in the Te Aro area. Units in many new developments that have been brought to the market recently have been quickly taken up and more and more developers are looking for suitable existing buildings that can be converted."
Total floor area in the property amounts to around 1966sq m. The commercial building, which fronts Vivian St, is home to PB Tech on the ground floor, which also leases part of the rear warehouse (shared with a Vodafone data storage facility) and a small office upstairs.
Level One provides 15 car parks, while levels two, three and four are leased to office tenants including Adelphi Finance, Evaluation Associates, Skylight, MBS Counselling and Colin Car Agencies. A further 19 uncovered car parks are located above the warehouse and accessed via a ramp from Vivian St.
The property is popular with tenants because of its location on Vivian St, a main arterial route which carries traffic from the Terrace Tunnel into Te Aro and the CBD area, says McIlroy.
"The Vivian Street location is highly prominent and offers easy access to the motorway and Wellington International Airport. Cuba Street and Courtenay Place are just a short walk away and the immediate area is also home to some of Wellington's best bars and restaurants."
