Prominently placed in busy Napier
The land and buildings of a highly visible commercial property in the Napier suburb of Taradale are being presented to the market for sale and offer buyers the opportunity to acquire an asset with a steady rental stream and development potential.
366-368 Gloucester Road, Taradale is spread across two separate titles and is home to a community hall, formerly occupied by St John, and a Caltex service station who have a five-year lease on their location that runs until 2027 and provides $80,200 plus GST in net annual rental income. There are also two further rights of renewal available for five years each leading to a final expiry in 2037.
The property, which is being sold as a single offering, is zoned Main Residential by the Napier City Council under their Operative District Plan.
The community hall, which is located at 366 Gloucester Street, is available with vacant possession and provides the new owner with options as they could utilise it for their own needs or potentially reposition it.
The subject location is approximately 10 minutes from Napier’s central business district and offers convenient access to nearby amenities such as food and beverage outlets.
Owner-occupiers, investors, and developers will have interest in this property given there is considerable potential alongside an income-generating tenant.
Colliers Brokers Daniel Moffitt and Danny Blair have been exclusively appointed to market the property for sale via deadline private treaty closing at 1pm on Wednesday 8 May, unless sold prior.
Metro Fuels Limited, trading as Caltex, has occupied 368 Gloucester Street since 2005. The service station has a 168 square metre showroom and amenities space, 145sqm workshop, mezzanine storage and amenities areas, a 270sqm canopy, and yard space.
Their lease also includes two-yearly rent reviews providing further income potential for the new owner.
The hall has a 106sqm office and kitchen area in the front of the building and 144sqm of hall space at the rear. There is also 49sqm of mezzanine area. The property includes eight car parks.
A market estimate from Colliers from December 2023 suggests the hall could be leased for approximately $40,000 plus GST per annum.
Moffitt, Commercial and Industrial Sales Broker at Colliers Hawke’s Bay, says the property enjoys a strong road presence and multiple entry points.
“The new owner will have the option of leasing the hall, which could be used by a range of community or social groups, or potentially developing the property given the site’s favourable size and shape. Vacant possession provides another layer of convenience meaning any plans to use the hall could be enacted rapidly,” Moffitt says.
“The steady rental stream on offer from the established neighbouring tenant means the new owner can strategically plan their future moves for the property without extensive cost pressures. Built-in rental reviews will add further appeal for prospective purchasers.”
Napier has a population of approximately 63,000 people and is known for its Art Deco buildings, popular beaches, and accessibility to the wineries across the wider Hawke’s Bay region.
Taradale is home to the Eastern Institute of Technology, a tertiary education provider that offers more than 150 qualifications to students. It is also a popular residential location that has potential for further growth.
Blair, Director at Colliers Hawke’s Bay, says the Hawke’s Bay region continues to attract local and national capital as the recovery continues following the extreme weather events of early 2023.
“This property is perfectly positioned for a notable development in the coming years and buyers with a long-term view will recognise the value on offer that will allow them to create something that will shape the future look of Taradale,” Blair says.
“We encourage all interested parties to reach out to explore their options. Properties with this type of development potential rarely come to the market in Hawke’s Bay.”