A fully leased 1980s retail and office building along Wellington’s preferred homewares and furniture shopping strip is for sale, with potential for repositioning in the future thanks to strong zoning credentials.

The five-level 2,096sqm building on a 918sqm site at 190 Thorndon Quay has prominent retail frontage at street level, one level of secure carparking, three office levels, and billboard space on the building’s faces. The zoning is Central Area, with the site having a 35.4-metre height overlay.

The property has a reliable leasing history, with longstanding bedding retailer BedsRus occupying the 404sqm ground floor retail space plus the two off-street car parks. BedsRus is New Zealand’s largest independent bedding group and has been in business for 30 years, with more than 50 independently owned and operated stores nationwide.

New Zealand Police leases administrative office space of around 1,692sqm across the three upper floors, which are accessed by lift and staircase, along with 20 dedicated car parks. Billboard company Media5 leases marketing space on the north and south top faces of the building. Billboards in this location can optimise the long sight lines and strong traffic flow for vehicles entering and exiting the CBD from/to Hutt Road, the Western Suburbs and State Highway 1.

The property returns total net annual income of $398,795 plus GST, with the BedsRus and the government-backed police lease running through to late-2028 and 2027, respectively. A seismic assessment places the property above 67 percent new building standard in 2012.

Mark Sherlock and Liam Sherlock from Bayleys Wellington Commercial team are handling the sale, with the realistic private investor owner primed to sell, and opting for a tender process closing Wednesday 29th October.

Suggesting the property would suit a passive investor, an add-value buyer, or a developer with a medium-long-term plan, Mark Sherlock says the property has plenty going for it.

“It suits the current tenants’ needs, with tangible value placed on the carparking ratio for the office component, and high visibility which works in the bedding retailer’s and the billboard company’s favour.

“Although the new cycle paths have changed the on-street parking capacity, operators like BedsRus continue to occupy retail spaces as they monitor the full impact of roading changes. The completion of the roading works is a huge plus for all tenants on Thorndon Quay.

“People in the market for big ticket items tend to gravitate to Thorndon Quay for its comparative retail experience as it’s a destination strip for furniture, designer homewares, and furnishings and continues to dominate the Wellington market as an enduring retail and trade precinct.”

Passive investors will appreciate the income the property generates, which, if pitched against eroded real returns on money in the bank, looks pretty good, while add-value buyers will recognise the opportunity to modernise the office floors to broaden occupier appeal, says Mark Sherlock.

“However, the underlying zoning and the development-friendly height overlay also leaves the door open for an apartment or hotel conversion in the medium term.

“The building has plenty of natural light, and the upper levels offer really good harbour and city views. When you couple this with the 20 undercover car parks on a secure floor, the building could clearly support alternative use away from the office.”