Just what the doctor ordered in New Plymouth

The Property
• Two-storey 1900’s villa converted to commercial use and until recently, used as medical facilities
• 1,343sqm site
• 658sqm building area currently configured to provide separate offices, reception, waiting room, amenities and laboratory facility
• 20 on-site car parks
• Zoned Residential B
• Vacating tenant
• Exposure to more than 15,000 passing vehicles per day

Quick Look
• National Total Property marketing campaign – for sale by auction
• Strong enquiry levels from investors on Bayleys’ databases and directly off the Total Property magazine
• At least 10 genuinely-interested parties, with two spirited bidders on auction day
• SOLD for $1,300,000
• Purchased by a local investment/property management company

The Story

This impressive 1900’s villa just minutes’ from the CBD on a prominent corner in New Plymouth, has long been associated with the medical sector having housed a medical laboratory back in the 1960’s, and the vacating tenant being in the same field.

The opportunities for the property and the large site were wide-ranging said commercial brokers Iain and Darryl Taylor of Bayleys Taranaki.

“Around 20 percent of the enquiry came from prospective owner-occupiers, roughly 40 percent from add-value investors and the remaining 40 percent from developers with a view to removing the existing building and undertaking a townhouse development,” said Iain Taylor.

“The successful purchaser is looking to retain the building and is in the market for suitable tenants now.”

The property had been through a 10-week price-by-negotiation campaign before the Bayleys’ team switched things up and launched a four-week targeted auction campaign via its Total Property portfolio.

This drew broad interest and focused enquiry from local buyers and some out of Auckland.

From the opening bid of $1million, spirited bidding in the auction room between two keen parties saw a sales’ price of $1.3 million and a happy vendor.

Darryl Taylor says the New Plymouth commercial market is strong with some record yields being achieved.

“A lack of investment stock has seen investors buying vacant properties to add value in order to attract new tenants and we expect to see this trend continue.”

Vendor Comment

The purchaser spokesperson, Mike Ekdahl, operations manager for Ekdahl Property Management (EPM), says the transaction was “seamless”.

As proactive investors in quality commercial property in New Plymouth’s CBD, EPM was pleased to acquire this sought-after offering.

“We searched for several months to find a property on a corner site that offered good visibility, in a desirable area surrounded by quality businesses,” says Mike Ekdahl.

“This property has all the credentials that we wanted and given the high traffic movements in the area, will be great for a tenant wanting profile and valuable parking space in a great part of town.”

Ekdahl said the property has a proven track record as a medical facility and although not limited to this use, expects that other medical-related businesses and health practitioners will be eager to secure space as tenants.

“We have been considering the idea of creating a health collective for smaller health professional groups that might like to work in a shared business centre environment.

“There’s an opportunity for like-minded businesses to create a health and well-being hub where complementary services can come together under one roof.”

Describing the purchase of the property as “seamless”, Ekdahl sang the praises of Bayleys’ great commercial team in New Plymouth, saying they made the process easy.

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