Tawa Stacked Up

Tawa Stacked Up

180-182 Main Road, Tawa, Wellington. Sold on 27th July 2017.

The Property
- 506m² freehold site
- 670m² two-level retail/office building in the Tawa shopping precinct
- Access to three carparks
- Five retail tenancies on the ground floor and four office tenancies on the first floor

Quick Look
- Total Property marketing campaign with auction method of sale
- SOLD under the hammer for $869,000 with six bidders in the auction room

The Story
Some vacancy on the first floor with a net income of $61,949pa + GST at the time of sale (October 2016)A well-presented, multi-tenanted two-level freehold retail/commercial property in the Wellington suburb of Tawa got bidders excited when it came up for auction late-2016.

The current building holds five ground floor retail tenancies with two retails fronting the busy street in Tawa and a first floor with untapped development potential currently configured into four conventional office spaces.

Tawa can leverage off its location halfway between Wellington city and the Kapiti Coast. It has a proactive business association and the suburb is on Council radars as a potential Business Improvement District (BID) which could bring economic advantages.

In the closing stages of the auction, two bidders slugged it out with bids increasing in $1,000 increments. It took a final flourish from buyer Laura Humphreys for the hammer to fall at $869,000.

BUYER COMMENT
We get inside the head of a first-time commercial investor…

This was my first commercial property buy and over the next 10-15 years, I plan to add another two or three properties to my investment portfolio.

I was unemotional about the location when looking for a property – anywhere in the greater Wellington region was worth looking at, and the Tawa property met my other criteria, something I could add value to.

I’m looking to create a business centre on the first level comprising individual offices with communal/shared meeting spaces.

With strong holding income from the ground floor retail tenancies, I will project manage structural and refurbishment changes upstairs and once completed and re-tenanted, I will likely outsource the day-to-day management of the property.

In buying further commercial properties, I will ask myself the same questions – is the area on the way up with signs of investment, are there vacancies to allow for rental upside and what can I do to add value to the property?

Bayleys’ agent Jon Pottinger says Humphreys has the hallmarks of an astute first-time commercial investor – “open-minded, pragmatic and visionary.”


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