An opportunity to take ownership of a significant portion of the Whanganui main retail strip has hit the market.
The properties at 79-81, 83, 85-97, and 101-103 Victoria Avenue comprise four separate buildings, three of which are directly next to each other.
They are available as one investment or separately, and are being marketed for sale by JLL by way of expressions of interest, closing on November 23.
JLL commercial broker John Binning says: "With leases to large commercial tenants such as Spark, IAG, Flight Centre, Whitcoulls, Specsavers, and ANZ Bank, the asset has security of tenure and good leases in place. The Weighted Average Lease Term (WALT) based on income is over six years, providing long-term income with most leases providing sustained rental growth prospects," says Binning.
"What's more, with one of the properties completely vacant and additional leasing of smaller units required, the value of the assets has the ability to increase through new long-term leases with rental upsides."
In terms of the buildings, 79-81 is the one completely vacant asset and presents 964sqm of lettable area with a large stud height, open floorplate, and natural light generation through the exposed ceiling windows and heightened glass frontage. The space has the ability to take on a number of uses with two smaller rooms located at the rear with a kitchen, bathroom and storage area in place.
83 Victoria Avenue is home to AMI Insurance as the sole tenant. The 288sqm retail space was built in 1980 and received a refurbishment in 2013 with an upgrade of the air conditioning and installation of automatic doors.
85-97 Victoria Avenue has six individual tenancies across approximately 1,168sqm of lettable area. Two of the units are currently vacant, with the other tenancies leased to Spark, Flight Centre, Specsavers, and Cactus Crème Café. The largely square site was completed in 2015 and has been constructed to a high and modern specification.
And finally, 101-105 Victoria Avenue sits on the corner with Maria Place, offering a high profile for anchor tenant ANZ Bank. The rectangular site was constructed in 2009 with more than 901sqm of lettable area and 22 carparks at its rear.
JLL Commercial Broker John McKenzie says together, the portfolio brings in an annual rental income of more than $720,000, but it has the potential to significantly raise this with the vacant space in addition to the favourable location.
"Victoria Avenue is considered the main retail strip of the Whanganui area accommodating both internationally renowned brands, national tenants and some local businesses," says McKenzie.
"Within the vicinity of the assets is a variety of greenspace including Queens Park, Majestic Square, the Moutoa Gardens and the Cooks Gardens Athletics dome. The area has the highest levels of foot traffic in the city and with ample on-street parking, the strip is easily accessible by cars and public transport."