AN EMPTY Manners St office block owned by Wellington property developer David Blackmore is up for mortgagee sale.
The block, next to Blackmore’s James Smith’s complex on the corner of Manners and Cuba streets, has been all but vacant since Inland Revenue moved staff to its new Featherston St head office last year.
Blackmore said his Number One Properties company, which owned the building, had to be put into liquidation about six months ago.
"After Inland Revenue moved out we had to put up more money to make the lender happy and there ain’t no money around these days.
"There are a couple of people I’ve been involved with who want to buy it but they [the mortgagee] have to go through the process to make sure they get the best price."
The mortgagee, First Mortgage Trust, has put it up for sale by tender closing on August 12.
Colliers International agent Rosemary Bradford said there were two ground floor tenants – Cozy Cakes and City Stop. The former Gubbs store was vacant and there was space for a fourth shop alongside Opera House Lane.
There was 4200 square metres of office space on five floors and potential to develop further floors above the building. It also had 28 car parks. The property was built by Chase in 1987.
Bradford said the block was likely to sell for well below its September 2009 rating value of $12.8 million because of the state of the market and the fact that the office space was vacant.
The mortgagee was prepared to offer finance to assist the sale.
It was in a central location next to the State Opera House and close to the St James Theatre, the Michael Fowler Centre and the Town Hall.
"The property will have appeal to developers for residential accommodation, either boutique hotel, or apartments."
The site was around the corner from the new Cordon Bleu Cuisine School which was due to open later this year in the former Regent Theatre complex fronting Cuba and Manners streets.
With up to 500 students, the school was expected to bring increased vitality to an already busy area and put further pressure on requirement for CBD apartments.
Fellow agent Michelle Spiers said the building was suited to residential accommodation. It had windows on four sides, overlooked Te Aro Park and was on the main bus route.
"It is in a price range that works well for residential conversion and in addition there is the potential to build further floors above," said Spiers.
Blackmore said the redevelopment of James Smith’s was still proceeding.
Earthquake strengthening work, which started about two years ago when there were plans to put apartments on top of the complex, was continuing as retail and office tenants moved.
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