The owners of a New Brighton beachfront apartment complex are finally able to sell their ‘as is, where is’ units – 11 years after the Canterbury earthquakes.
An insurance settlement was reached in February, paving the way for the 11 owners to finally move on.
Courtney Doig, Investment Sales Broker at Colliers Christchurch, says the apartments have spectacular sea views, are all individually owned, and have largely been used as rentals since the earthquakes.
The units are 120sq m each and the complex has 40m of frontage to Marine Parade.
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Set for auction on 29 September, unless sold prior, the secure, gated complex is directly opposite the beach at 272 Marine Parade.
The units were completed in 2006 and have 16 basement car parks with a further nine outdoor car parks at the rear. Total site area is 1,597sq m.
“Due to the desirable position, coupled with the residual improvements, this should appeal to both the development market and value-add buyers, who have been extremely active since the earthquakes,” Doig says.
“The ‘as is, where is’ properties have wide appeal, and the owners of this complex are unanimously committed to selling. They’ve decided to sell because after the drawn-out negotiations with the insurer, they want to avoid the challenges associated with undertaking a repair.
“They’re keen to move on with their lives.”
Doig says the regularly shaped site provides potential for future development, with good holding income in the interim although she suspects the ultimate outcome will be an incoming buyer looking to benefit from the residual improvements and undertake a repair.
“There are comprehensive reports available for qualified buyers to review, to assess an appropriate repair strategy. With construction costs escalating at present, this offers a good alternative to turning the apartments round in a timely manner.”
Doig has negotiated a lot of these sales over the past few years and interest in them is still strong, she says. Since the earthquakes, Doig has negotiated more than $43 million in body corporate sales.
The New Brighton complex is still “very liveable” according to Paula Halliday, chair of the body corporate.
“We’ve owned our unit since 2009 and have never had any trouble finding good tenants because it’s such a great location.”
The favourable Residential Medium Density Zone provides for townhouses, terraced housing, and apartment buildings and encourages comprehensive development of multiple adjacent sites.
New Brighton is in eastern Christchurch, with growing amenities, including popular hot pools He Puna Taimoana, the stunning local library, and zoning for the newly built Shirley Boys’ High School and Avonside Girls’ High School.
- Article supplied by Colliers
