In Wellington's CBD, freehold properties held in three contiguous titles across a total land area of 313sq m are for sale at 95-101 Victoria St, on the corner with Bond St.
James Chan of Bayleys Auckland says the owner of the land and buildings had plans drawn up and there is a resource consent in place for a 22-storey mixed-use development with retail at street level and apartments above.
Currently two, two-storey 1920s concrete or masonry buildings occupy the land which are home to a variety of small ground floor retail and hospitality tenants with residential accommodation on the upper level.
Tenders on the property close with Bayleys Auckland on Thursday September 28.
Chan says an Auckland development company has put a prime Wellington CBD development site up for sale having decided to concentrate their property interests in the Auckland market.
"While the properties are earning a holding gross income of around $200,000 on short term leases, the best use for this site is redevelopment to optimise the Central Area zoning's allowable height limit of 75m," he says.
"The existing buildings have served the city well but now require significant remedial work. Realistically, the site's future lies in redevelopment to make the best use of the location."
Chan says it could also be a potential hotel site given the identified shortage of hotel beds and rising tourism numbers in the capital. The plans that have received resource consent provide a gross building floor area of 5139sq m.
Grant Young of Bayleys Wellington is co-marketing the property with Chan and his Auckland colleague Quinn Ngo. Young says the area surrounding the corner site has seen significant recent investment and development.
"This part of the city has become more of a destination precinct thanks in part to new developments such as the one in Manners Street, with Michael Hill as an anchor tenant supported by several flagship fashion brands including Andrea Moore and Augustine," says Young.
"It's certainly an emerging part of town where new concepts are being explored and where commercial tenants wish to be based as evidenced by the very limited retail vacancy in the area.
"There's also pent-up demand for residential accommodation which will not be fully-absorbed by the two big apartment developments in the vicinity - the Pinnacle City Residence complex and the Victoria St. Precinct apartments."
Young says Wellington City Council spent around $13m rejuvenating the Victoria St area and developers are seeing value in being part of the change that is occurring in this part of the city.
"There are also plans to improve the Bond/Victoria St junction according to Council updates so the area is seeing significant attention which will bodes well for investors who commit to the area."