A strategically located through-lot, gaining double frontage exposure to two of the Gisborne CBD’s arterial routes, is bursting with upside and early twentieth-century charm, Bayleys’ Mike Florance says.
The partially occupied collection of buildings, which once served as the Gisborne Herald headquarters, is situated on a total landholding of 3,452sqm (more or less) of freehold land on Peel Street and Gladstone Road, in Gisborne City’s urban heartland, where large assets of its scale and prominence are rare to market and tightly held.
Florance says the properties present a highly advantageous opportunity for add-value investors, being offered to the market at a time of significant growth for the region, reflected in Council plans for strategic intensification in and around the city centre.
“Dual street frontages provide excellent visibility and access from both major streets, which is particularly beneficial for retail and commercial tenants, providing significant scope to harness redevelopment potential for maximum rental growth and capital appreciation.
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“The properties are held in three titles, designated as three areas with a total floorplate of circa 4,180sqm plus a complement of car parks to service the tenancies.
“Buildings offer a striking combination of architecture, blending modern and historic features, providing an attractive canvas on which to undertake enhancements which could optimise occupancy, enhancing the property’s appeal to a broader range of tenants.”
Florance is marketing the land parcel for sale by tender, closing at 4:00 pm on Thursday, 1 August 2024 (unless sold prior).
The northeastern portion of the most significant structure fronts Gladstone Road, with a character façade reflecting its history as the hub for regional newspaper operations.
This building extends west, gaining frontage to Peel Street - the portion occupied by national brand Office Products Depot offering a new lease on favourable terms with a market rent valuation of circa $127,370 net per annum.
Subsequent area breakdowns are as follows:
Area 1: Two seismically strengthened buildings with 2,170sqm fronting Gladstone Road, 701sqm fronting Peel Street and 14 rear car parks, partially occupied by Office Products Depot;
Area 2: Vacant 409sqm premises with an attractive heritage façade to Gladstone Road and two car parks;
Area 3: Vacant 900sqm premises fronting Peel Street with rear access via a private right of way.
Florance says the through-lot configuration allows for flexible tenant arrangements and can accommodate multiple businesses with separate entrances on each street, enhancing the split-risk opportunity for further leasing.
“Several structures have been seismically strengthened to 100 per cent of New Building Standards, ensuring immediate adherence to modern safety requirements.
“The configuration is such that those with an eye for add-value works may look to instal tenants in the vacant portions of the property to generate immediate income while refurbishment plans are put into place.
“Alternatively, the properties provide a long-term blank canvas opportunity for complete redevelopment that would capitalise on the prime CBD location and the region’s growth projections.
“Gisborne District Council’s Future Development Strategy proposes significant infrastructural investment in and around the city centre, including key road upgrades, improved accessibility, and transmission corridors for electricity and gas, which stands to revitalise the city centre, attracting new residents and a more vibrant commercial environment in the decades to come.
“Securing this strategic landholding presents a rare, generational opportunity with offering flexible options – from immediate income generation through tenancy to long-term value creation via redevelopment – tailored to diverse investment strategies.
“With the region poised for significant growth and urban densification, the Gisborne Herald Buildings represent enduring value and a prestigious asset for any portfolio.”
- Supplied by Bayleys
