Nelson CBD building a rare offering

1:11 PM Wednesday February 15, 2017 Colin Taylor

The property at 68-89 Bridge St is one of the biggest commercial buildings in the Nelson CBD. Photo / Supplied

One of the biggest and most prominent commercial buildings in Nelson's central business district is on the market.

The two-storey freehold building at 68 - 80 Bridge St houses electronics and appliance retailer Noel Leeming and gymnasium operator MiGym.

The 2741sq m building occupies a 1452sq m site and generates a combined annual rental income of $412,057 plus GST.

“Nelson's CBD buildings are closely guarded and commercial properties of this quality seldom come onto the market,” says Tony Vining of Bayleys Nelson who, with colleague Gill Ireland, is marketing it for sale by negotiation.

“A contemporary building with such large retail space is near impossible to find in Nelson's CBD - let alone one with a solid investment return on offer.

“Nelson is growing fast but there is limited and increasingly expensive land for the construction of new commercial buildings. The investors that purchase this Bridge Street property will position themselves well for the future,” Vining says.

He says the Bridge St property has a rateable value of $4,730,000 - comprising $3.1 million for the building and $1,630,000 for the land, which is zoned Commercial (8C) Inner-City.

“The building was constructed in the 1980s and underwent a substantial redevelopment in the 1990s for high street retailer H&J Smith which wanted to create a South Island 'flagship' store.

“H&J Smith moved out of the premises in 2003 but the firm's legacy in wanting to create a store with an emphasis on quality remains,” Vining says.

“The building has an impressive glass panel frontage and a towering second floor atrium. Inside are large attractive floor spaces on each level with high ceilings that accentuate the building's spaciousness.

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Electronics and appliance retailer Noel Leeming is one of two tenants in the building. Photo / Supplied

“Situated on the 'sunny side' of the street, the building has vaulted upper floor with a 10 metre ceiling and highlight windows which allow vast amounts of light to flood in.

"On the street frontage, distinctive architectural features include angled glass panels and a terrace looking out above the city and to the hills on the horizon.

“A glass-fronted lift connects the property's two levels, along with a wide, sweeping staircase at the front and a second set of stairs at the rear.”

Vining says both tenants in the building have dual access from Buxton Square car park as well as Bridge Street which encourages foot traffic and is a major benefit for shoppers.

He says the internal structural configuration of the Bridge St investment property allows for change in tenancies.

“While the premises successfully function in the current format, with two separate tenancies, it could just as easily be converted back into a single department store or potentially be subdivided into smaller units.”

The property has some warehousing space with access for goods vehicles and a staff entrance off Buxton Square.

Ireland says Noel Leeming has a six-year lease on 1451sq m of floor space which expires in 2020. “The lease comes with four further four-year rights of renewal and annual rent reviews linked to the Consumer Price Index.”

She says MiGym has a six-year lease on 1116sq m of space in the building and this also encompasses the 174sq m mezzanine floor area.

Gym Interior .jpg

The second tenant is gymnasium operator MiGymn. Photo / Supplied

The lease expires in 2018 and comes with four further three-year rights of renewal and rent reviews linked to the Consumer Price Index.

“There are multiple toilet and bathroom facilities on both levels, with a modern lighting and security system.”

Ireland says MiGym is one of few 24-hour fitness facilities in the Nelson CBD - with free childcare as well as steam and sauna rooms.

A food and beverage operation operates from the gym's lower level. Ireland says the Nelson-Tasman region has the highest population growth in the South Island and is second nationally.

“Tourism is becoming increasingly important with Nelson having a 23-25 per cent increase in visitor numbers during the 2015-2016 season and now recognised nationally as a destination in its own right.

“Nelson Airport is one of the country's busiest regional aviation hubs catering for 760,000 passengers last year - and forecast to reach 1.1 million during the next 20 years.”

The city centre is only a 10-minute walk from Port Nelson which is welcoming an increasing number of cruise ships each year.

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Tony Vining and Gill Ireland, Bayleys Nelson