Landmark Clarke’s Buildings on The Parade in Island Bay for sale
A mixed-use building leased to retail and residential tenants is on the market through Colliers International, offering a split-risk investment opportunity.
Clarke’s Buildings, at 121 The Parade, Island Bay, Wellington, is for sale by deadline private treaty closing on 19 July through Colliers brokers Sam McIlroy and Tim Bowden.
The fully leased, two-level building is an outstanding opportunity to purchase a ready-made diversified investment, says McIlroy.
“Residential and retail are two of the most popular property investment categories at the moment. This is a great chance for buyers to get the best of both worlds – with retail tenants downstairs and apartments upstairs,” he says.
“We know investors are searching for diversification and ways to spread their investment risk across different sectors. Properties like this are a great solution to that problem, although they’re not seen on the open market very often as they are tightly held.”
The property’s location in the Island Bay commercial centre, a bustling suburban hub where there is little vacancy, is expected to be a further drawcard, says Bowden.
“Island Bay is a thriving and affluent suburb, popular with families and offering a vibrant cultural scene. The commercial centre has grown over the years and is now a busy town centre for the local community, providing a good range of shops and services. This makes it a sought-after place to buy investment property.”
The building, constructed in 1923, features a well-preserved ornate classical façade on the upper level, making it a local landmark. Its 420sq m of internal floor area is split across three ground floor commercial leases and two residential apartments upstairs.
Two advertising leases complete the current gross annual income of $121,237.
A recent market rental valuation showed the residential component of the building is currently under-rented, says McIlroy.
“There is potential for the buyer to adjust the apartment rentals up to market levels, increasing the property’s total rent roll and adding value for the new owner,” he says.
The commercial tenancies are leased to three local businesses - Island Bay Bakery, Bunkhouse Graphic Design and Crown Indian Takeaways - on leases expiring in 2022 if rights of renewal are exercised. The apartments both have four bedrooms and rear ground floor courtyards.
The building is on a 339sq m freehold site within easy reach of bus routes, the local New World supermarket, childcare and medical facilities as well as Wellington’s South Coast beaches.
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