A fully-leased, mixed-use property in fast-growing Te Aro, Wellington, has been placed on the market, offering a multi-tenanted investment in a high-demand location.
128 Tory St, on the corner of Tory St and Frederick St, is being marketed by Sam McIlroy and Rex Fowler of Colliers International. It is for sale by tender closing at 2pm on Wednesday November 30 2016.
The property, which contains two adjoining buildings on a single 326m² freehold title, has an excellent leasing history, says McIlroy.
“There has been very little vacancy in the property in recent years across both the commercial and residential components. 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.”
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 + GST, says Fowler.
“This investment provides a solid income stream split across five separate tenancies. Multi-tenanted investments are always popular among buyers because of the reduced income risk if a tenant were to vacate,” he says. “This property provides 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 790m² 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. It houses the two retail tenancies on the ground floor and an apartment upstairs. The rear building provides 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.”
The apartments (one 5-bedroom and two 3-bedroom) have historically been easy to lease with demand from several tenants who want to live in the central city, he adds.
The property, which is being sold by a family trust which has owned it since 2008, has a rateable value of $1.68m as at September 1 2013. The buildings’ exteriors were refurbished in 2011 and they have been seismically strengthened.
The property is located on a prime corner opposite the Top of Tory shopping centre and close to Moore Wilsons and Prefab, says Fowler.
“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.”