This building at 37 Mandeville St, Riccarton, Christchurch, is for sale
A Christchurch commercial building tenanted by a business within an industry that is thriving as a result of the earthquakes has been placed on the market for sale.
Located at 37 Mandeville Street in the suburb of Riccarton in Christchurch, the commercial building sits on a high-profile site on the fringe of the CBD.
The property has been placed on the market for a deadline sale, through Bayleys Canterbury salespeople Stewart White, Chris Frank and Nick O'Styke, with offers closing on December 4.
The building is tenanted by Home Ideas Centre - a business showcasing products and services from leading home building and renovating brands - which has traded successfully on the site for 27 years.
More than 100 exhibitors are currently located within Home Ideas leasing spaces ranging from two square metres to 60 sq m. Exhibits range from kitchen and bathroom designs, to living areas, laundries and outdoor living suppliers. As wells as exhibiting home products such as appliances, furniture, flooring, windows, and pools, the company also offers a range of services such as architects, builders, painters and designers.
Thousands of homes were destroyed and damaged in the earthquakes that have shaken the region since 2010.
Outside the residential red zone, more than 10,000 houses are likely to require rebuilding or to need significant repairs, according to Statistics New Zealand. More than $3.9 billion worth of building consents were issued in Canterbury between September 2010 and December 2012 and billions more dollars will be consented as the rebuild continues over the years ahead.
White says this has driven increasing demand in the city for building tradespeople and for businesses that provide goods and services for home renovations.
"This industry has experienced a boom because of the number of people rebuilding their houses since the earthquakes. The tenant provides a one-stop-shop for house owners looking to create or recreate their dream home.
"As a result of this, the tenant has already signed up for another eight years taking the current lease through until October 2022."
Under the existing terms the tenant has an eight-year right of renewal for a contract annual rental of $530,000 plus GST.
"There is a severe shortage of good quality investment commercial properties for sale in a central location and fewer tenanted by a business in a flourishing industry, so this building will appeal to a large range of potential investors," says White.
The 2212 sq m, Business 4-zoned building is made up of a ground floor reception, showroom and display area, offices and conference centre. There are 23 customer car parks on site.
Surrounded by other related businesses, close to Riccarton Mall and the Tower Junction Centre, the property is close to Riccarton and Blenheim Roads, which have strong traffic flows in both directions.
"Mandeville Street and the surrounding area is popular for this type of business, with a number of other companies associated with the building trade located nearby so the property is ideally suited to a tenant of this nature," says White.
The building has had significant upgrade work including an extension to the northern side of the showroom in 2006.
Planning of earthquake strengthening work is underway to bring the property up to 67 per cent or higher of the new building standards. White says this work will be carried out at the vendor's expense with completion dates still to be confirmed and the tenant has been kept fully informed throughout the process.
"This is a superbly presented property with a first class tenant," he says."The sale of 37 Mandeville Street represents an opportunity for a buyer to take over a tenanted building in a sought after location."