Good earners in Nelson
Two high-profile, national-brand tenanted commercial properties for sale in Nelson reflect the diversity of investment and redevelopment opportunities on offer in the fastgrowing region.
Colliers International is marketing an 850sq m, split-risk retail property
28 Halifax St, in the CBD, plus a prime
5180sq m redevelopment site with holding income at 170 Rutherford St, on the city fringe.
Geoff Faulkner, managing broker at Colliers Nelson, says both offerings will have broad appeal to local or national buyers looking to invest or develop.
“The region offers excellent investment fundamentals, with strong economic growth and abundant lifestyle opportunities.”
Colliers broker Ken Montgomery says Nelson is in the midst of a commercial development surge.
The property at 170 Rutherford St occupies a large, high-profile site in a tightly held city fringe location.
Montgomery, who is marketing it with Grant Unsworth of GBU Realty, says the key to this redevelopment opportunity is its location and size.
“Rutherford St is a major arterial route into Nelson. Located only 130m from the edge of CBD, the property’s
80m frontage offers massive exposure to a steady flow of vehicle.
Split across 12 freehold titles, the property is occupied by a Mitsubishi vehicle dealership with a floor area of
1420sq m. Improvements include modern vehicle showroom, office and customer service areas, and a substantial nine-hoist workshop.
The property is on a five-year lease returning $175,000 in annual rent, with two-yearly market rental reviews, from October 1 2019.
The lease is due for renewal in October 1, 2023, with a 12-month landlord termination clause allowing earlier possession for redevelopment from late September 2021.
The property is for sale by tender, closing at 4pm on Wednesday October 31, unless sold prior. “The premium location, scale and flexible lease terms provide options for a diverse range of purchasers, making this distinctive property worthy of investigation,” says Montgomery.
The property at 28 Halifax St is being offered to the market for the first time since it was built in 2000.
Faulkner, who is marketing the property for sale by auction, says it is at the gateway to Nelson’s CBD.
The property goes under the hammer at 4pm on Wednesday, October 24, unless it is sold earlier.
“Superbly positioned on a northfacing site near the visitor information centre and council premises, it enjoys fantastic sight lines to Trafalgar St, Nelson’s premier retail strip. Nearby retailers include Hunting and Fishing, Kathmandu, Macpac and a substantial Toyota dealership.
“This split-risk investment property is tenanted by well-recognised national furniture retail chain Nood and the popular local Halifax Cafe. The building is of substantial construction, with a high stud, tilt slab concrete walls and a high NBS seismic rating.”
Both tenants are signed to longterm leases returning a combined $171,327 plus GST in net annual rent from 1 November.
Nood is signed to a six-year lease with 3 per cent fixed annual rental increases and market reviews on renewal. Three rights of renewal extend the final expiry date to October 2036.
Halifax Cafe is signed to a six-year lease with fixed annual CPI rental increases and market reviews on renewal. Three rights of renewal extend the final expiry date to October 2035.