Queenstown retail and office centre for sale
An aerial view of the Terrace Junction office and retail centre in Frankton. Photo / Supplied
The Terrace Junction office and retail centre in Frankton just outside Queenstown has been placed on the market for sale, at a time when the resort town’s property market is experiencing an extended period of growth.
The property, on the Frankton roundabout at 1088-1092 Frankton Rd, is being marketed for sale by tenders closing on May 31 through Colliers International’s brokers Mark Simpson and Rory O’Donnell.
“The multi-tenanted complex opened in 2009 on a high-profile site adjacent to the BP station on the main road into and out of Queenstown,” says Simpson.
“This is a strategic asset offering buyers a sought-after diversified income stream from multiple office, retail and car park tenancies,” he says. “The property has exceptional exposure from State highway 6 and Frankton Rd which captures the largest proportion of traffic into and out of the airport and central Queenstown and will be considered a trophy asset among buyers.”
The two-level, 6175sq m complex is anchored by Westpac and Burger King, both of which were founding tenants in the development, and is almost fully occupied, with around 40 tenants generating total current annual net income of $1,411,399 a year.
“This sale presents is an opportunity to acquire a quality, diverse commercial asset in the high-growth and tightly held Queenstown market,” says Simpson.
“We see Terrace Junction as a very attractive offering for commercial investors looking for a high profile and well located asset with great street appeal, car parking and established tenants in place. It also offers investors the opportunity to buy in the tightly-held Queenstown market at a comparatively higher yield than the Queenstown central business district,” Simpson says.
The two-level complex is anchored by a Westpac and Burger King. Photo / Supplied
“Owners rarely let go of larger commercial properties in Queenstown and buying opportunities are rare, so for buyers looking to enter Queenstown Commercial market, this is a great option. The location midway between the CBD and Frankton Flats is strategic, with the Frankton Flats area rapidly developing into a major commercial hub for the Queenstown Lakes and wider Central Otago region.”
The complex is made up of two buildings with lift access to a basement car park. It covers two separate freehold titles comprising a total of 8752sq m of land. “The shared entrance with BP, which is the busiest service station in Queenstown, gives the complex an exceptionally high profile,” O’Donnell says.
“This location means the centre also conveniently serves nearby residential areas including Shotover Country, Lake Hayes Estate and Frankton, as well as large numbers of airport passengers,” he says.
The Queenstown Lakes region now has over 2.9 million visitors each year, with over half of them arriving through Queenstown Airport. The average day population in the Queenstown Lakes district (including residents and visitors) is now at 48,000 (97,000 average peak day population), a figure which Queenstown Lakes District Council predicts will increase to 57,000 by 2025.
“These extremely strong population and tourism growth and projection trends are providing a major driver for the Queenstown property market, with very high demand and restricted supply characterising all sectors of the market. We expect these conditions to continue into the medium term,” O’Donnell says.
Mark Simpson, Colliers International.