The two-storey property sits at one of the city’s busiest corner locations, with prominent exposure to heavy pedestrian and vehicle traffic at the intersection of Fitzherbert Avenue and Ferguson Street. Positioned one block from The Square, the site is next door to Manawatu’s largest shopping centre, The Plaza.
The complex for sale is anchored by ground-floor national tenants Jetts Gym, Red Rat Clothing and The Baby Factory, as well as Bangkok Thai, the city’s first Thai restaurant which has operated since 1990. These four tenants have been in place since between 2011 and 2014. Level one houses NZ Red Cross and a boutique dance studio.
These diverse tenancies generate a combined net rental return of $387,471 plus outgoings and GST per annum, while two vacant first floor tenancies present a new owner with the chance to add further value.
The freehold land and buildings at 85-89 Fitzherbert Avenue, Palmerston North, are being marketed for sale by Angus Findlay of Bayleys Palmerston North.
The property will be sold by deadline private treaty closing on Thursday 25 May and will not be sold prior.
Findlay said the property comprised an approximately 3,000-square metre building on some 2,099 square metres of freehold land. The complex has an Initial Evaluation Procedure seismic rating of 67 percent of new building standard.
The Fitzherbert Avenue site forms part of the Inner Business (Commercial 8A) zone, representing the commercial heart of Palmerston North. This is characterised by a mix of high and low office and retail developments centred by The Square.
Findlay said this precinct was seeing substantial ongoing public and private investment in buildings and infrastructure which would drive further business growth and infill development.
“Sitting alongside The Plaza shopping complex and surrounded by other national brands such as PAK'nSAVE, Countdown, Kmart, Burger King and Toy World, this property has a location which is second-to-none.
“The long tenure of the established ground-floor tenants is a true testament to the site’s superb presence, which is virtually unrivalled in the CBD,” said Findlay.
Fitzherbert Avenue carries some of the highest traffic flows in Palmerston North, being a direct route to various destinations.
“With proximity to major retailers as well as alternative travel modes, this location is a magnet drawing people in from a wide city catchment and sustaining an abundance of consumer activity.
“Adjoining The Plaza and within walking distance of The Square, there is no shortage of amenities neighbouring the site for sale.
“With its diversified mix of national anchor tenants and superb profile, frontage and parking – plus the chance to fill vacant tenancies – this property will appeal strongly to buyers seeking a passive investment with the opportunity to further boost rental income and yield,” Findlay said.