All present and correct with Levin new-build
6 Liverpool Street, Levin
- Freehold, purpose-built office/administration and coordination facility for the Department of Corrections
- Floor area 609.7m²
- Land area 1,264m²
- New 12-year full net lease in place at $168,805 + GST per annum
- 11 car parks
- 100% NBS rating
- National Total Property marketing campaign with tender method of sale
- SOLD for $2,617,000 – at a 6.41% yield
- 7 tenders were received, plus one expression of interest
- Huge national enquiry, although the majority of tenders were from local investors
- The property was purchased by a passive Wellington-based family trust.
A new purpose-built Community Corrections facility on the corner of Liverpool and Cambridge Streets in Levin, with a new 12-year net lease to the Department of Corrections, attracted robust competition through a tender process recently.
The property was a design-build project by Wallace Development Company Limited, and the new facility replaced a somewhat dated building which had been used by Corrections for 27 years.
Fraser Press, Stephen Lange and Bede Blatchford of Bayleys Wellington took the new property to tender and were pleasantly surprised at the level of enquiry for the regional offering.
“This good-looking modern, smart, low maintenance property leads the way in a nation-wide upgrade programme by the Department of Corrections and provides modern, safe facilities, benefitting staff and visitors,” says Fraser.
“It was a stand-out offering in the Levin commercial property market and really raises the bar for future development in the area.
“The strong Crown tenant covenant and long lease term along with the high quality of the build itself is underpinned by the benefits of the Wellington Northern Corridor which aims to streamline traffic movements along State Highway between Wellington Airport and north of Levin.”
Tim Fitz-Herbert, development manager at Wallace Development Company Limited (WDCL), says the Levin property sets a new benchmark for Department of Corrections.
WDCL has been engaged to work on a number of new community corrections’ facilities for the Department of Corrections in recent years and had successfully completed buildings in Hawke’s Bay, Gisborne, Palmerston North prior to building the Levin property.
Tim says the architecture, general design and layout of the Levin property has been so well-received that it is to be the new benchmark for Corrections’ facilities going forward.
“A lot of thought went in to the design-build process and we were very proud of what was achieved with the Levin project,” he says.
“It was a high-quality build and with building costs escalating, I believe it represented a very good buy for the new owner.”
Tim says the sales price attained through the Bayleys’ tender campaign was at a level WDCL expected and hoped for given the credentials of the property and the current market.
“We were very happy with the marketing and sale process and pleased with the outcome.”
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