Passive CBD investment with development upside
An A-grade CBD investment in the tightly held West End Precinct of New Plymouth is being offered to the market for the first time in 16 years.
Colliers International Broker Benet Carroll is marketing the property – featured in the latest Colliers Portfolio – by way of deadline private treaty, closing at 4pm on Thursday 6 December, unless it sells earlier.
Carroll says it is an exceptional opportunity to acquire an investment in the sought-after centre of New Plymouth’s emerging arts and commerce scene.
“The western CBD has become the epicentre of art and culture with many top retailers and office tenants choosing to relocate to this end of town,” he says.
“Growth and the popularity of the area have resulted in low vacancy rates, well below the city’s average and resulting in rising land values.
“This is an excellent passive investment for an investor looking for stability of income and value growth.”
Constructed in the 1970s the property at 7 King Street and 62 Devon Street West comprises three levels of offices and ground floor retail.
“Two street frontages provide tenants with exposure to New Plymouth’s premier retail strip, as well as the foot traffic of those going to the public library and award-winning Puke Ariki Museum.
“Being nestled amongst such vital landmarks future proofs the property and suggests future residential conversion potential.”
The property has a net lettable area of 828sq m and total net rental of $153,240 per annum.
Carroll says it offers some of the best office space in New Plymouth, which is evidenced by the high-calibre of tenants it has attracted.
“The building has four outstanding tenants with staggered lease expiries offering add value opportunities through rental growth and potential development.”
ArtHaus has occupied the Devon Street West frontage since 2007 and provides art, home décor and gifts.
Poppies, a well-known and popular book store franchise, has been operating out of the ground floor of the King Street frontage since 2008.
Tenent Datacom, one of Asia Pacific’s leading locally owned IT-based service providers, started with half a floor when they occupied in 2015 and have since expanded to two full floors.
TenderWatch, Australia’s largest privately owned tender solutions provider, recently secured a four-year lease over the top floor of 7 King Street.
The property has an A-grade seismic rating and is zoned Business A Environment.
Architecturally designed in two stages from 1974, it has since been re-roofed and undergone extensive refurbishment inside.
New Plymouth is a thriving hub that’s on a growth trajectory shown by growth in population, the number of businesses and employees in the area and contribution towards the GDP.
As the Taranaki region’s only city, tourism is a huge growth sector in New Plymouth with both the number of visitor arrivals and the time stayed for increasing in the last year
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