An entire street of stand-alone homes has caught the attention of investors for its rare-to-market and highly attractive, long-term proposition in a high-growth community well-serviced by established infrastructure, Bayleys salespeople say.
The combined landholding of 4,542sqm (more or less) at 1-14 Acorn Way, halfway between Nelson City and Richmond, sustains 14 three-bedroom homes on a cul-de-sac adjacent to the Stoke shopping precinct.
Bayleys salesperson Gill Ireland, who is marketing the property with colleague Kaitlyn Turner, says, “Priced at $9.45 million including GST, equating to $675,000 per home, the portfolio offers investors a significant upside with recent comparable sales in the area being between $790,000 to $840,000.
“The sheer scale of the offering is unprecedented in the market, providing a gold-standard investment opportunity with immense long-term value and immediate returns for a new purchaser, given a demonstrated history of occupancy and strong demand for homes in the area.
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“Having maintained 100 percent occupancy since completion in 2013, each property is currently tenanted on an individual lease arrangement.
"The current rents are below market value, and present an opportunity for review, with a good proportion of existing tenants eager to stay on by long-term arrangement, reflecting the location's attractiveness and development build quality.
Weekly rents for the homes range from $567 to $620, with eight lessees on periodic tenancy arrangements and six on fixed-term agreements expiring between November 2024 and June 2025.
Ireland says, “The homes generate an annual rent of circa $430,135 from a diverse tenancy structure that provides flexibility and a stable income for the next owner.”
The development and rental portfolio have earned national recognition for excellence in tenant-landlord relationships, business practices, and portfolio profitability as award recipients from both the New Zealand Property Investors Federation (NZPIF) and the Ministry of Business, Innovation and Employment (MBIE), highlighting its strong investment fundamentals.
“With the proportion of long-term renters across New Zealand expected to significantly increase over the next decade, there is immense opportunity for the private rental sector to respond to shifting lifestyle preferences.
"We expect the sale of this portfolio will draw widespread attention from community housing groups, government housing agencies, strategic investors and well-capitalised private purchasers.”
Varying between 123 and 140sqm (more or less) each, the three-bedroom homes feature one bathroom, a separate toilet, an internally accessible garage, landscaped gardens and direct access to the scenic Railway Reserve walkway – a highly desirable lifestyle feature for tenants of all ages.
Each property fully complies with Healthy Homes regulations, featuring regularly maintained heat pumps, double-glazed windows and fully insulated garages.
Nine homes provide single garages, while five feature double garages, catering to a range of tenant preferences.
Bayleys salesperson Kaitlyn Turner says the portfolio, which is held in two titles, was futureproofed for subdivision into 15 lots at the time of construction, with services and infrastructure already in place.
“The option for subdivision provides an added-value angle for buyers looking to unlock even further potential. Additionally, GST has never been claimed on the properties, providing a similar upside for a new purchaser, depending on their situation.
“Acorn Way is a turn-key investment with everything in place and potential to leverage – exceptional tenants, immaculate homes and a prime location.
"Opportunities like this are few and far between. With shorter-term rental agreements providing flexibility for a new owner, and the development’s award-winning status for business best practice, Acorn Way is positioned as a trophy asset in Nelson’s thriving rental market.”
- Supplied by Bayleys
