The flagship property at 209 Hardy Street is fully-occupied by two tenants – KiwiBank in the slightly larger tenancy with a wide frontage to Hardy Street, and co-tenant NZ Post leasing the private box lobby facility to the rear-facing the Buxton Square public carpark.
The A+ grade property is at 100-percent new building standard, has a building area of 717sqm and occupies an 830sqm site pivotally-located in the centre of Nelson’s commercial precinct with high foot traffic counts and has two dedicated car parks for tenant use.
The property returns a net income of $247,500.00 per annum plus GST and outgoings with the two tenants on new leases with regular market rent reviews and rights of renewal, and a weighted average lease term of 5.5 years.
Currently owned by local private investors, the property has undergone significant recent refurbishment and now that it’s in prime condition, they wish to sell to free-up capital for another local investment project.
The property has been placed on the market for sale by negotiation, with Bayleys.
Gill Ireland, Bayleys Nelson said with two proven national tenants in-situ, clear locational advantages and sound lease fundamentals, the property is a standout in the Nelson marketplace.
“It’s a high calibre building that has been exceptionally well-maintained, offers dual access, adjoins the nicely-planted Old Bank Reserve laneway with shade and seating so doesn’t feel hemmed in and is in one of the busiest parts of town being just around the corner from the main Trafalgar Street.
“This is a reliable hands-off investment opportunity with the added benefit of favourable zoning that could allow future redevelopment to optimise its full potential.”
The site is zoned Inner City – Centre and with Nelson City Council’s city centre spatial plan encouraging greater intensification in the future, Ireland said the existing single-storey building at 209 Hardy Street could potentially expand upwards in line with growing demand for more residential options in the central city.
“It’s certainly food-for-thought for an astute investor looking long term for options and development upside.”
Ireland said the 2021 upgrade to provide a new specialised fit out meeting Kiwibank’s discerning requirements, future-proofs the bank’s day-to-day functions and plays an important role in the commercial environment providing a business hub along with frontline banking and digital banking interfaces.
“The property is accessible, smart, fit-for-purpose, has high visibility and the site clearly works well for Kiwibank hence its strategic investment in fit out and commitment to a long lease with renewals.”
NZ Post’s private box lobby facility has streamlined access from the Buxton Square Carpark to the rear, which offer 329 public car parking spaces.
Ireland said commercial property in Nelson has traditionally been tightly-held among established Nelson-based families and investment entities, however, that is changing.
“The Nelson region is literally enjoying its time in the commercial property sun, with robust buyer interest from right around New Zealand and from offshore,” she said.
“A lot of people are moving here, and the region is attracting significant business interest, so the property market generally is extremely active.
“With border restrictions starting to ease, we’re anticipating a marked uptick in enquiry from offshore investors which will ultimately shake the market up even further.”