Revitalised Wellington asset for sale

A comprehensively refurbished and seismically strengthened building close to Te Papa in Wellington is a textbook example of a cleverly repositioned mixed-use commercial asset, with savvy investors now having the opportunity to acquire the well-performing asset.

Located in a vibrant part of the city, and effectively future-proofed thanks to an extensive and design-led upgrade, the striking building at 234 Wakefield Street, Te Aro has a 100 percent new building standard seismic rating, and improved building performance outcomes.

The fully leased building with circa-5,308sqm lettable space comprises large-format ground floor retail/hospitality accommodation, three levels of secure car parking and four levels of modern office space with efficient floorplates, good natural light and workable layouts, making for a flexible and functional mixed-use environment with broad occupier appeal.

Interior refurbishment works include upgraded lobby and common areas, modernised office fitouts, refreshed amenities, improved lighting and finishes, and enhancements to building services. These improvements have created a quality, resilient workplace and have contributed to strong tenant retention and leasing performance.

Returning net annual income of around $1,920,000 per annum, with varying lease terms, the property is occupied by a diversified mix of private sector and government-aligned tenants across office, entertainment and parking uses. Residential apartments located on Level 8 are separately owned and do not form part of the property for sale.

The Lanes bar, restaurant and bowling alley occupies the entire 1,220sqm plus mezzanine ground floor retail space. Car parking is provided across levels 1 to 3, offering 123 secure on-site car parks, with Wilson Parking managing level 1. The upper levels 4-7 provide 2,868sqm office accommodation for six tenants including a government department, professional services, and technology businesses.

The comprehensive property is for sale by deadline private treaty closing Wednesday 4 March, unless sold prior, through Luke Kershaw and Mark Walker, of Bayleys Wellington Commercial.

The capital’s central city remains a tightly held investment market, supported by sustained occupier demand for strengthened, well-presented commercial buildings located close to key amenities, cultural assets and core employment centres. Expected to appeal to high-net-worth families and individuals, and private syndicates, Kershaw says the property’s combination of resilience, refurbishment and amenity enhancement for market relevance, and the high allocation of car parks, sets it apart in the Wellington market.

“Investors on the look-out for a resilient modern building, with diversified income across market segments and held within a single ownership structure, will appreciate the credentials here.

“This is an easy property to manage and given constrained parking capacity elsewhere in the city, the volume of onsite carparking with this building amplifies the appeal for tenants and will act as a strong attraction and retention tool in the future.”

The Te Aro precinct continues to evolve, with major development projects planned or underway. The subject property’s position opposite Te Papa and Tākina Convention and Exhibition Centre, and close to the Courtenay Place entertainment precinct and Wellington waterfront, supports sustained tenant demand and long-term income performance.

The location benefits from high levels of pedestrian activity, cultural and leisure amenity, and convenient access to public transport networks, city bus routes and key arterial links across the CBD and wider metropolitan area.

Mark Walker says private investment company and developer Primeproperty Group has committed to the redevelopment of the nearby Reading Cinema site and will transform it into The Court, a hub offering cinemas, retail, hospitality and dining in the Courtenay Place hospitality precinct, expected to reopen next year.

“This will add to the amenity in the immediate area and further underpin the locational advantage of the property we’re selling.

“The building’s high-stud ground floor large-format retail/hospitality tenancy and mezzanine are eminently suited to destination and entertainment-style operators, with an address that can leverage proximity to Te Papa, Tākina, and Courtenay Place.

“The property is a blueprint for how buildings can be innovatively repositioned to hold their own in a competitive marketplace. It’s now ready for a new owner to secure a presence in one of Wellington’s most active inner-city environments.”