28 Halifax St was built in 2000. Photo / Supplied
Two high-profile, national-brand tenanted commercial properties for sale in Nelson are expected to have broad appeal to investors or developers.
Colliers International is marketing an 850sq m, split-risk retail property 28 Halifax St, in the CBD; and a prime 5180sq m redevelopment site with holding income at 170 Rutherford St, on the city fringe.
The property at 170 Rutherford Street occupies a large, high-profile site in a tightly held city fringe location.
Ken Montgomery, who is marketing it with Grant Unsworth of GBU Realty, says the key to this redevelopment opportunity is its location and size.
"Rutherford St is a major arterial route into Nelson. Located only 130m from the edge of CBD, the property's 80m frontage offers massive exposure to a steady flow of vehicles.
"The site is also large by Nelson standards. It's very rare to find freehold redevelopment sites of this size anywhere on the city fringe."
Split across 12 freehold titles, the property is occupied by a Mitsubishi vehicle dealership with a floor area of 1420sq m encompassing modern vehicle showroom, office and customer service areas, and a substantial nine-hoist workshop.
The property is on a five-year lease earning $175,000 in annual rent, with two-yearly market rent reviews, from October 1, 2019.
The lease is due for renewal in October 1, 2023, with a 12-month landlord termination clause allowing earlier possession for redevelopment from late September 2021.
The property is for sale by tender, closing at 4pm on Wednesday October 31, unless sold earlier.
"A premium location, scale and flexible lease terms provide options for a diverse range of purchasers," says Montgomery.
The property at 28 Halifax St is being offered to the market for the first time since it was built in 2000.
"It is well located at the gateway to Nelson's CBD," says Geoff Faulkner of Colliers who is marketing it for sale by auction at 4pm on Wednesday, October 24, unless it is sold earlier.
"Superbly positioned on a north-facing site near the visitor information centre and council premises, it has excellent sight lines to Trafalgar St, which is Nelson's premier retail strip.
"Nearby retailers include Hunting and Fishing, Kathmandu, Macpac and a substantial Toyota dealership.
"This split-risk investment property is tenanted by well-recognised national furniture retail chain Nood and the popular local Halifax Cafe. The building is of substantial construction, with a high stud, tilt slab concrete walls and a high NBS [New Build Standard] seismic rating."
Both tenants are signed to long-term leases earning a combined $171,327 plus GST in net annual rent from November 1.
Nood has traded in Nelson for many years, having previously occupied a nearby property. It relocated just under two years ago to the property for sale, where it has a wide street frontage.
Nood is signed to a six-year lease with 3 per cent fixed annual rent increases and market reviews on renewal. Three rights of renewal extend the final expiry date to October 2036.
Halifax Cafe has been trading for several years and is now a well-established local cafe with a consistent clientele.
It is signed to a six-year lease with fixed annual Consumer Price Index rent increases and market reviews on renewal. Three rights of renewal extend the final expiry date to October 2035.
Geoff Faulkner at Colliers' Nelson office says the region offers excellent investment fundamentals, with strong economic growth and attractive lifestyle opportunities.
Montgomery concurs saying Nelson is in the midst of a sustained, demand-driven commercial development surge.
"This is underpinned by strong residential growth and the economic success of our tourism, horticulture, forestry and fishery sectors. Nelson-Tasman increasingly feels like the Queenstown-Otago phenomenon in its infancy. It's among the South Island's most desirable locations and attracts strong immigration from New Zealand and offshore.
"With Nelson's continued economic growth and strong residential and commercial demand, properties like these two will always be keenly sought by investors and developers."