Investor activity for well-located and well-leased retail property remains steady in the Wellington CBD, despite lingering uncertainty around whether Council initiatives to get Wellington moving by changing up street layouts and functions proceed.
Billed as a straightforward retail investment, a freehold unit-titled offering in Willis Street, part of the city’s prime Golden Mile, and home to a flagship Shoe Clinic footwear store and a Mojo express format coffee outlet, is for sale as its owners have relocated to Auckland and wish to streamline their property portfolio.
The retail space known as Unit 3, 58 Willis Street has a total 261.2sqm lettable area and provides two tenancies on the ground floor of the five-level plus penthouse residential/office Sixty Willis building where the upper levels were converted to apartments circa-2000.
The unit returns net annual income of $244,759 plus GST, with an earlier lease also providing around $16,000 additional net income from an automatic teller machine and that small component currently vacant.
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The property with Central Area zoning overlay is being marketed for sale via a tender campaign closing 4pm, Wednesday 9th August through Mark Sherlock, Bayleys Wellington.
He says the property is a solid performer in the Wellington CBD market, with both Shoe Clinic and Mojo having occupied this site for many years with both tenants recently extending their lease terms through to 2030.
“These tenants are local icons and market leaders in their respective industries,” says Sherlock.
“Shoe Clinic has been in this store for around 20 years and is owned and operated by one of two founders and directors of New Zealand founded franchise Shoe Clinic Franchises Limited which has multiple stores around the country.
“Wellington-founded Mojo Coffee is now one of New Zealand’s most experienced independent coffee roasters and café operators and this metro-format store trades solidly.
“This retail offering has great frontage to Willis Street which enjoys high levels of foot traffic, with the stores bookended by New World Metro and Unichem Pharmacy.”
With personal health and well-being a resilient consumer sector post-pandemic, Sherlock says the tenant mix for this property stacks up in the current climate.
“Sports and recreational footwear remain things that shoppers are prepared to invest in and with Shoe Clinic offering personal fitting and advice, it set itself apart from more generic shoe retailers.
“Likewise, even with the cost of living being squeezed currently, takeout coffee has retained its following as an affordable necessity and with office workers returning to the CBD, there’s always a place for caffeine.”
Willis Street is a pedestrian-friendly and proven retail location with wide paved and landscaped footpaths, bus lanes, continuous verandah cover and continues to be revitalised and repositioned as a destination shopping and dining precinct.
Further towards Lambton Quay, below the Precinct Properties-owned AON Tower at 1 Willis Street, established national entertainment operators Holey Moley mini-golf and Archie Brothers bowling and arcade games will open soon on the back of successful launches in Christchurch and Auckland.
Other nearby occupiers include major banks and national and international fashion brands, while Willis Street is well-connected on the city’s bus network with a bus stop close to the subject property.
- Article supplied by Bayleys
