Leading the Vanguard in Nelson
54 Vanguard Street, Nelson
- Prime corner site of 1,114sqm with drive-through access around the property
- Single-level 546sqm building
- 13 car parks
- 87% IEP earthquake rating
- Fully-tenanted to Lighting Plus Limited and The Bike Station
- Rental income of $133,905.14pa + GST with outgoings 100% recoverable
- Strong leases with rights of renewal and built-in rent increases
- WALT of 4 years
- Zoned Inner City-Fringe
- RV: $2,230,000
- Marketed via a four-week tender campaign and actively promoted to local database
- The property was under offer just four days after being listed to an existing client, and the sale was unconditional the next day
- 18 enquiries received
- Sold for $2,350,000 at a yield of 5.8%
- Purchased by a proactive local investor
With tight market conditions in Nelson and a shortage of commercial property offerings for investors, this refurbished and fully-tenanted property on a prime corner site in a commercially- proven part of the city was always destined to be popular.
Gill Ireland of Bayleys Nelson Bays says the plan was to take the property through a month-long tender process and this was set in motion.
However, when she presented the property opportunity to an established investor client on her database the day after it was listed, the whole process was fast-tracked.
“My buyer client knew a great property opportunity when he saw it and I had an offer on paper from him immediately,” explains Gill.
“Some negotiation ensued, the contract was signed four days after listing and unconditional one day later.”
Gill says the vendors of the property were keen to achieve a clean, fast sale and thanks to regular updates and keeping in touch over a number of years, they were well-versed in market fundamentals and able to recognise that the offer was a good one.
“Everyone was happy with the outcome and the speed in closing the deal was a reflection of just how sought-after commercial property in a good location with strong tenant credentials is in Nelson city.”
Vendor spokesperson Tania Billingsley says a good relationship with her Bayleys’ agent created the path to a successful – and quick – sale.
It was all about location when the family company purchased the commercial investment property nine years ago, and Tania says the decision to sell was purely “age and stage” driven.
“Several of the shareholders were at different places in life and wished to cash up their investment,” she explains.
Tania says she had developed a great working relationship with Gill from Bayleys in recent years and says she valued her “straight up and honest” approach to the market.
“I had been discussing with her the possibility of selling, and so when we decided to list the property, Gill already had several qualified prospective purchasers in mind.
“The fact that the property was under contract four days after it hit the market shows that Gill really understood our property and understood our position as vendors.
“Price-wise, I think Gill did a fantastic job, for both us – and the purchaser.”
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