Ashburton property with challenges didn’t faze investors
95, 97 and 99 Archibald Street, Tinwald, Ashburton
- Three leased retail tenancies with established tenants
- High profile to State Highway 1
- Total building area of 976m² (approximately)
- 3,036m2 site in three titles, with future development potential
- Business C zoning
- Total rental $100,707.94 + GST
- Ample off-street parking; yard space
- National Total Property marketing campaign with Deadline Private Treaty sale method (unless sold prior)
- Two motivated buyers from the outset
- An early offer sealed the deal just days after the campaign began
- SOLD for $1,200,000 at an 8.3% yield
- Purchased by a local investor
This was an opportunity just waiting for a proactive investor to snap up and with two “hot” buyers actively competing to own the properties within days of the offering being advertised, a conclusion was reached ahead of the deadline sale date.
Stewart and Alex White of Bayleys Canterbury marketed the tenanted investment portfolio which boasts enviable exposure to busy State Highway 1.
“Conservatively there are 25,000 vehicle movements per day past this location which translates to great branding prospects for any business,” says Stewart.
“The existing businesses – Lizzy’s Dairy, The Green Grocer and Simply Petfoods – are longstanding tenants who appreciate the easy access, the ample customer parking and the general catchment area.”
In preparing the property for sale, Stewart concedes that there were some inherent challenges thrown up by an initial evaluation procedure (IEP).
“While the property at 99 Archibald Street was at 80% of new building standard, the other two came in at 25%,” he explains.
“Our marketing campaign unearthed several motivated buyers prepared to deal with the structural issues in this instance.
“I put this down to the outstanding location, and the fact that the eventual buyer had been looking for property in this area for some time which in turn created some competition and urgency.”
Stewart says one buyer presented an unconditional offer on day two of the campaign and following some strategic negotiations in the days following, the deal was signed off.
Vendors Judy and Michael Kingsbury are moving on to the next stage of their busy lives so the time was right to sell their Ashburton commercial investment portfolio.
The couple bought the Archibald Street portfolio 23 years ago and say it’s been a sound commercial investment in the mid Canterbury town.
Former farmers in the district, Judy and Michael were keen to invest back into their local area and, for more than two decades, have found the properties to be popular with business tenants who provide valuable services for passers-by travelling along State Highway 1 and for residents and workers in the area.
Deciding to sell the properties was a well-considered process says Judy – a former real estate agent who understands the dynamics of the market and the importance of being well-informed when selling.
“In the long lead up to putting the properties on the market, we approached three agents from different companies to give us an appraisal and a plan of action for a sale,” she says.
“Stewart was the one who regularly kept in touch with us and his persistence paid off.”
Needing to navigate the issues revealed through an IEP report was a bit of a curve ball for the Kingsburys, so they were somewhat relieved to find several buyers prepared to submit offers.
“With an early offer and then some competition, we soon reached an offer we were happy to accept.”
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