Palmerston North high rise for sale
A FULLY LEASED Palmerston North office building is back on the market.
The property at 89-93 Rangitikei St, just two blocks from The Square, is being sold by Christchurch’s Port Hills Property Holdings, which leases the third floor.
Bayleys agent Lewis Townshend said the seven-storey block, which was built in the 1960s for Barraud & Abrahams stock and station agents, had 200 square metre floor plates that fitted the city’s general tenant profile.
The property’s tenant schedule spread the risk and it had a sound leasing history. It was an easily managed property that would suit a hands-off investor.
Most of the tenants had been in the building since 2006 or 2007, including information technology companies Spinning Planet, Media Sculpt and Datawest.
The owners had spent about $600,000 on improvements in recent years and the building had good natural light, city views and was in a prominent spot near the corners of Grey and Walding streets.
A seismic assessment of the building was due to be completed shortly, said Townshend.
It had a net lettable area of 1490sqm and with the exception of the ground floor, there were single tenancies on each level. It was returning a net annual rent of about $207,600.
The building, which failed to sell when it was last offered to the market in 2011, had a 2012 rating value of $3,355,000.
Townshend indicated this was higher than the likely sale price. Assuming an investor would be looking for a yield of 8-9 per cent, it could go for about $2.4 million.