New Plymouth’s ‘ golden mile’
Three large commercial properties within metres of New Plymouth’s main street have are for sale.
Two of them — at 79- 87 and 137 Devon St East — are being marketed by Bayleys Taranaki, with an auction date of November 23.
The third — 311- 315 Devon St East — is for sale with Bayleys via a tender process, closing December 9.
The three listings, said to be on New Plymouth’s “Golden Mile”, are being marketed by Alan Johnston and Iain Taylor of Bayleys Taranaki.
“Each of the three properties offer the opportunity for good returns in a centralised location,” Johnston says.
“With tourism in Taranaki on the rise, and buyers from the main centres in Auckland and Wellington turning to the regions for more affordable property, commercial opportunities in New Plymouth are becoming much more appealing.”
Nestled in between predominantly hospitality and retail services on New Plymouth’s “golden mile”, 79- 87 Devon St East comprises six separate rental spaces on two freehold titles, crossing from south- facing Devon St East to north- facing Gill St.
Zoned Business A, with a capital valuation of $ 1.97 million, each rental space i s currently occupied with lessee’s including a footwear store and a communications company.
“With a land area of 1969sq m including first floor office suites, warehouse storage and 14 carparks, the property returns a holding income of about $ 225,466 — the highest income out of the three properties on offer,” says Taylor.
“About 140m up the road, the second property at 137 Devon St East i s a smaller scale investment anchored by multi- national brand Cash Converters — which has leased it for the past 15 years,” Johnston says.
“Currently returning $ 80,000, with a floor area of 805 square metres, there is a favourable longterm lease in place which commenced in October last year.”
“Providing security with an established long- term tenant, the property comprises prime retail, showroom, mezzanine and basement storage space including seven carparks.
“With a category A seismic rating, the property has benefited from an extensive refurbishment inside and a recent face- list of the exterior — making it very attractive as a low maintenance investment,” Johnston says.
“The final property on New Plymouth’s CBD fringe — at 311- 315 Devon St East — is the only of the three zoned Business B.
“It offers the new owners a chance to utilise a vacant portion of the site whilst tenanting the balance of the property and generating an income,” says Taylor. “The flexible ‘ Business B’ zoning permits a range of commercial and business uses, and some residential, leaving options for the new owners to reconfigure, add value or occupy.”
“With the potential to accommodate four tenancies, there are t wo ground floor office suites as well as a retail showroom space including mezzanine and a separate office suite on the first floor.
“One of the ground floor offices is tenanted, producing a holding income of $ 77,155 net per annum.
“Occupying 1611 sq m of land with generous parking to the front and rear of the site, the building was extensively refurbished in 2008, making it an attractive business space with modern amenities, glass frontage and air conditioning,” says Taylor.
All three properties are owned independently, with the respective owners looking to redistribute equity and pursue business opportunities — which are more suited to their present needs.
“While the properties are certainly in close proximity to one another, each of them holds appeal for a different buyer, with 79- 87 Devon St East presenting a development opportunity, 137 Devon St East a sound long- term investment and 311- 315 Devon StEast an add- value or owner occupier investment,” Johnston says.
“Timed to take advantage of the recent buzz around regional New Zealand property, Taranaki is basking in the limelight.
“Last month it recorded a record median sale price for housing and the Lonely Planet Guide recently declared it to be ‘ the second best travel region in the world’,” Taylor says.