Mixed-use hub with upside in Hataitai
Properties at 5-17 Moxham Ave, Haitaitai include a two-storey residential apartment block.
A freehold portfolio of commercial and residential property held in three titles and spanning more than 1800sq m in the Wellington city fringe suburb of Hataitai has come to the market.
The properties, at 5-17 Moxham Ave, are at the junction of Taurima St, which leads to the Hataitai tunnel.
Bhakti Mistry and Fraser Press of Bayleys Commercial Wellington are marketing the properties, which will be sold by tender as one lot closing December 4, on behalf of a local family trust.
The trust has acquired the contiguous properties over a number of years, cementing a valuable foothold in the evolving suburb.
The portfolio comprises a two-storey residential masonry apartment block requiring refurbishing. It has one three-bedroom apartment and three two-bedroom apartments and separate two-car garaging. This component of the portfolio is vacant.
There are two one-level commercial buildings and a further two-storey converted dwelling with two retail/commercial tenancies and more than nine sealed car parks.
The building directly fronting the street was built around the 1920s and was originally four shops. Today it accommodates the Realm restaurant and bar, TAB and the Hataitai liquor centre.
Set back on the south-eastern portion of the land is a converted two-storey dwelling with the front portion home to Refuge hair boutique and the rear component configured as consulting rooms and offices for Hataitai osteopaths. There is timber decking, small storage sheds and asphalt car parking spaces in this area.
The commercial portion of the portfolio is fully-leased and returns net income of $193,657pa plus GST. This includes a lease to Vodafone for a cell tower.
Mistry says an assessment shows that potential gross income of more than $358,000 plus GST per annum could be realised across the portfolio, if a refurbishment and leasing programme for the residential apartments was undertaken.
“The properties offer investors a well-located split-risk opportunity with recognised upside through improving the residential component and benefitting from subsequent rental gains.
“There is an identified shortage of residential rental accommodation in the Wellington region and demand for property close to the city centre seems set to remain out of balance with supply for the foreseeable future.”
Further, with the city’s average house values increasing year-on-year, Hataitai has joined the list of Wellington suburbs where the average house value exceeds $1m, which will provide confidence to investors. Some of the portfolio properties fall within Wellington City Council’s designated Hataitai shopping centre heritage area.
The building housing the Realm restaurant and bar has long-standing community significance and anchors the broader shopping area. Back in the 1930s, the premises was home to the Realm ballroom and it was the social hub for the suburb’s locals,” said Mistry.
“Over the years there have been many dining establishments in the building, notably Giovanni's pizza parlour, established in the late 1970s.
“The reputation for providing local hospitality continues today with the Realm filling a niche for locals by opening seven days a week and providing dining, bar facilities, a TAB outlet, gaming machines and supporting Hataitai community and sporting groups.”
The three titles within the Moxham Ave portfolio have Centres zoning under the district plan which permits a wide range of uses. The Centres zoning serves to facilitate the economic and social life of communities, based around localised shopping and services.
Mistry says the recent marketing and sale of land and buildings at 12 Moxham Ave, across the road from 5-17 Moxham Ave, drew investor interest, with that sale representing a 5.3 per cent yield.
“The mixed-use portfolio we are marketing occupies three times the land area of the one opposite and will appeal to add-value investors who recognise the inherent potential of the offering,” said Mistry. “A new owner will have security of income from the commercial component to bolster the refurbishment of the apartment block.”