A distinctive character commercial building along Thorndon Quay in Wellington has been placed on the market for sale under receivership conditions, providing an opportunity for a proactive buyer to reposition existing leases and seek new tenants for vacant space within the asset.

Stephen White and Richard Nacey of PwC are the receivers of the vendor and, in this capacity, have appointed Bayleys Wellington Commercial to take 202 Thorndon Quay, Pipitea, Wellington through a tender process. Bayleys brokers, Fraser Press and Mark Sherlock have clear instructions to present all offers by Wednesday 24th September.

Constructed in 1902 and refurbished and strengthened in 2002-2003, the three-storey building presents a striking façade to the street with a 243sqm ground-floor showroom leased to an established retail store, 1,718sqm of upper-level office suites leased to a variety of businesses, and 18 on-site covered car parks.

Character features include polished timber floors, high-stud ceilings and exposed brickwork, with the building having air-conditioning, a lift and wide stairways servicing all levels, bathroom amenities on each level, and excellent natural light throughout.

There are 10 tenancies in total across the building, with five current tenants and the balance being vacant. The property has a current net income of circa-$290,088 plus GST per annum and potential to grow this to $427,563 plus GST once fully leased.

Fraser Press of Bayleys says the property is an add-value opportunity for a proactive and hands-on new owner to secure and reposition.

“It’s a cool building and has always been a popular retail showroom destination thanks to its strong presence on the street, and the upper levels have leased well to office occupiers.

“The property now needs a hands-on investor to shore up the leases and backfill the vacancies within the building to optimise the income streams. The multi-tenancies do provide a spread of risk, and there’s potential for good upside once fully leased.

“The 18 on-site car parks are a real drawcard for occupiers in this part of town, and the location is tightly held given the proximity to the CBD, Parliament, and with Thorndon Quay being a northward arterial and part of the main bus route, too.”

Press says Thorndon Quay is ready for a new era now that the two-way cycle lane through to the CBD has been completed and roadworks disruption has ceased.

“It’s now time to work with the infrastructural changes and look to the benefits of the location. This building has a lot going for it, and given the receivership conditions, it’s time to turn a new page and realise the potential it has.”