High profile Blenheim building in mortgagee sale
A prominent retail and office building in Blenheim’s central business and shopping precinct, is on the market as a mortgagee sale.
Radio House, located on the corner of Market and Main Streets, is in the city’s primary retail shopping precinct, with high traffic and pedestrian levels. It is approximately 300 metres from the intersection with State Highway 1.
The two freehold unit titles on the ground and first floor have a combined 840sqm leasable area and are tenanted - generating an annual net rental income of $183,200 (plus GST) from seven tenants and two billboards.
Radio House is being marketed for sale by auction on September 18 through Bayleys Marlborough salesperson Grant Baxter, who said the prominent corner location ensured high passing foot traffic.
“This is a high-profile location in Blenheim’s CBD, and neighbours include, Hallensteins, Glassons, the high rise post office tower and the police station. Recently developed Briscoes and co-site store Rebel Sports are just east of the building, adding to a recorded increase in pedestrian traffic to the Main Street frontage.
“Any building with a main street position and close to a main arterial route to and from the city takes advantage of the collective customers in the CBD community.
“The variety of leases across the nine sources of income flow also delivers a broad risk profile for any potential new owner looking at the building for investment returns.”
Radio House’s tenants include, Southland Building Society, Custom Copy, Ice 2 Eskimos Ltd, which leases two areas, Billboard Copy, human resources company Intepeople, a legal office, and the Marine Farming Association. There is also income from two SBS bank billboards.
“The diverse businesses of each of the tenants ensures some degree of compatibility, with the high traffic and foot count in the precinct contributing to a very high profile.”
Anchor tenant SBS Bank has a 10-year lease commencing in July last year, with two five-year rights of renewal, and a final expiry date of May 2032. The bank pays a net annual rental of $105,000, plus operating expenses. Of the other tenants, three of the final expiry dates for the tenancies have final expiry dates in 2014, one in 2020 and two in 2032.
The modernised building is zoned commercial and comprises three levels of office space/retail. Built in 1977, it is constructed of concrete foundations, concrete column and beam frame tilt slab concrete and block walls with aluminium joinery.
The building has recently undergone strengthening work, and a Code of Compliance for work completed was issued in November 2012. The building’s warrant of fitness expired on July 1, this year, and renewal has been applied for.
SBS Bank is on the ground floor, of 454sqm, along with two retail tenancies. The first floor, of 386sqm, is occupied by two major and two minor tenancies. The land and building has a capital valuation of $1.94 million.
Marlborough is a flourishing region, with a warm climate and regularly records the highest sunshine hours in New Zealand, said Mr Baxter.
“It is also the country’s largest grape growing and wine making region with more than 50 wineries, nearly all of whom welcome visitors for tasting sessions and many have a cafe or restaurant on site.
“Other key attractions to the area include the Omaka Aviation Heritage Centre, and the Queen Charlotte Track, offering views of the Queen Charlotte and Kenepuru Sounds, fishing and boating.