Auctions reveal lively ‘as is, where is’ market
Christchurch’s central city heritage-listed former Post Office building housing C1 Espresso and Alice Cinemas recently changed hands for the first time in 30 years.
The price of the Cashel St building will be revealed when the deal settles next month after a private deadline treaty sale.
Investment sales specialist Courtney Doig, of Colliers International, was unable to disclose details but said it was sold to a private first-time commercial buyer at well above the rateable value.
Doig will continue working for the new owner to lease the two top vacant floors.
The sturdy building was largely undamaged in the 2011 earthquakes and the previous owners restored elements of the building.
Meanwhile, the ‘‘as is, where is’’ commercial property market still has plenty of steam in it, judging by the results of the latest Colliers auction in Christchurch.
Three ‘‘as is, where is’’ buildings were sold under the hammer in lively bidding at the auction, with six of the seven properties selling on the day for a total of $4.575 million.
‘‘As is, where is’’ generally refers to properties where the owner has taken an insurance payout but then chosen to sell.
A complex of 11 townhouses in Phillipstown was keenly contested, fetching $1.75m.
Doig said there were about 15 bidders in the room.
The successful buyer was one of the under-bidders for a previous auction of a similar complex in Beveridge St that sold at a recent Colliers auction.
‘‘The main interest in this Phillipstown property came from contractors with resourcefulness to repair and people seeking cashflow,’’ Doig said.
‘‘There’s still a lot of unsatisfied demand for this sector of the market where people see the opportunity to add value.
‘‘As body corporates finally resolve their claims with insurers, we’ll continue to see these types of multi-unit dwellings coming to the market.’’
Two city fringe industrial ‘‘as is, where is’’ properties attracted similarly strong interest, with 31 King Edward Terrace in Woolston selling for $1.06m and 63 Buchan St netting $280,000.
Industrial broker Christian Kellar said interest remains high in the city fringe ‘‘as is, where is’’ market.
‘‘Inquiry [levels are] still strong for properties in this sector, particularly among owner-occupiers and savvy investors looking for a value-add opportunity. We believe there are still plenty of ‘as is’ opportunities – we’re getting a lot of demand and vendors are getting fantastic prices.’’
Other sales included a rural and lifestyle block in Prebbleton, which sold for $740,00, and an entry-level investment at 411 Tuam Street, which went for $535,000.