A rare opportunity to purchase a freehold commercial building on Wellington's retail "Golden Mile" is on offer through Colliers International.
The fully-leased, three level building at 138 Lambton Quay is being marketed by brokers Hamish Templeton and Sam McIlroy for sale by deadline private treaty closing on March 15, unless it sells before the deadline date.
"Entire buildings on Lambton Quay don't come on to the market very often," says Templeton. "There are also very few freehold properties on Lambton Quay priced in an accessible value range like this one, so we are expecting a lot of interest."
The property occupies a 149sq m site in the heart of the government and commercial precinct, close to Parliament and the railway station.
Lambton Quay's status as Wellington's premium retail strip means the property occupies a prime location, says McIlroy. "Investment properties on Lambton Quay are very tightly held based on a consistently high demand among retailers for space on the street, which results in a very low vacancy rate."
Retail vacancy on Lambton Quay was just 3.3 per cent in Colliers' latest survey in June 2017, down from 3.5 per cent the previous year. The high-demand, low-supply scenario has resulted in rent increases; with average prime retail gross rents in Wellington CBD increasing by 7.3 per cent in 2017 compared with the year prior.
"The market dynamics in Lambton Quay retail have proved to be very stable over the years, which is a great state of affairs for landlords and contributes to any properties on the street that do come to market, being snapped up quickly," McIlroy says.
The building was constructed in the late 1960s and has dual access from Lambton Quay and The Terrace, with six rooftop car parks on The Terrace side. It has 355sq m of floor area and three tenants generating a strong cash flow.
The Level Two top floor is occupied by Amarin Thai Massage while Sushi restaurant Fujiyama Cafe leases the ground and first floors. Singaporean restaurant Chumeez Cafe occupies the basement level.
A new owner could redevelop the property, says Templeton. "There are many options for this property which may appeal to buyers, from minor cosmetic improvements right through to a full overhaul and modernisation of the building."