Wellington Te Aro property has two buildings
The fully leased buildings occupy a high-profile site at 128 Tory St, Te Aro.
A fully-leased, mixed-use property, on the corner of Tory St and Frederick St in fast-growing Te Aro, Wellington, has been placed on the market, offering a multi-tenanted investment in a high-demand location.
The property encompasses two adjoining buildings on a single 326sq m freehold title and has an excellent leasing history, says Sam McIlroy of Colliers International who, with colleague Rex Fowler, is marketing 128 Tory St, for sale by tender closing at 2pm on Wednesday November 30 2016.
“There has been very little vacancy in the property in recent years across both the commercial and residential components,” McIlroy says. “This is down to the location, which is very convenient for people who want to live in the central city and also for retailers and service providers needing affordable yet central space for their businesses.”
Fowler says the property is home to two retail tenants: Te Aro Brewing Company and LT Campbell Electrical; and three residential apartments, generating total net annual rental income of $138,457 plus GST.
“It provides a solid income stream split across five separate tenancies,” he says. “Multi-tenanted investments are always popular among buyers because of the reduced income risk if a tenant were to vacate. This property has separate income streams which are diversified across commercial and residential tenancies - a rarity in the central-city property market which is likely to be attractive to buyers.”
The buildings, which have a total of 790sq m of floor area, comprise a two-level character building with a 15 metre frontage to Tory St and a three-level structure to the rear of the site, accessed off Tory St.
The front building dates from 1906 and houses the two retail tenancies on the ground floor and an apartment upstairs. The rear building has a warehouse space on the ground floor, used as a craft brewery by Te Aro Brewing; and apartments on the first and second levels.
“The tenancy occupied by Te Aro Brewing has adjoining retail and warehouse spaces. This sort of configuration suits a lot of retailers and service providers but is hard to find in the central city,” says McIlroy. “LT Campbell is a family-owned electrical repair business which is well known in Wellington, and both retailers are well established at the property.”
He says the three apartments (one five-bedroom and two 3-bedroom) have historically been easy to lease with demand from several tenants who want to live in the central city.
The property is being sold by a family trust which has owned it since 2008 and had a rateable value of $1,680,000 as at September 1 2013. The buildings’ exteriors were refurbished in 2011 and they have been seismically strengthened.
Fowler says the property occupies on a prime corner opposite the Top of Tory shopping centre and close to Moore Wilsons and Prefab.
“The building has a good profile in an area with high pedestrian and traffic volumes. Te Aro is also one New Zealand’s fastest-growing suburbs. Wellington City Council has identified the area as able to accommodate further growth, and there are new apartment developments being built in the surrounding area. This growth points to a positive future for property owners and businesses in the area.”
Sam McIlroy and Rex Fowler of Colliers International.