Warehouse centre has add- value potential
A prime industrial investment with future mixed use development potential is for sale in one of Napier’s fastest growing areas.
Colliers International Hawke’s Bay industrial broker Rob Nankervis is marketing 3- 7 Coronation St, Ahuriri, for sale or lease by deadline private treaty.
The 7796sq m freehold property is featured in the latest Colliers Portfolio, released yesterday. Offers close on July 13, unless sold earlier.
Nankervis says the large warehouse and distribution centre, comprising three buildings of 5647sq m in total, is ideally located in Napier’s most rapidly transforming mixed- use suburb.
“This is an excellent opportunity to purchase a solid add- value investment with future development potential,” he says.
“Investors can choose to either lease the property to a single tenant, or add value by leasing each of the three versatile warehouses to separ- ate tenants, transforming this into a split- risk investment.
“Developers can also draw on a holding income while they make plans to unlock the site’s mixed use potential, with rental returns estimated to be some $ 380,000 a year.”
Nankervis says the tightly held Ahuriri area has a low vacancy rate of less than 2 per cent, which bodes well for finding quality tenants.
The area not only benefits from its proximity to Napier’s CBD, about 2km away, it is also close to the Port of Napier, airport, and north and south expressways.
“The location makes it extremely desirable to tenants and developers, and its future prospects look promising,” Nankervis says.
Ahuriri was one of Napier’s earliest settled areas. It grew alongside the nearby port, which attracted industrial and residential occupants.
Nankervis says commercial users still dominate the area, with the Port of Napier driving much of the activity and traffic, but mixed use activities are becoming increasingly popular.
“Ahuriri now offers a mix of residential, commercial, industrial and recreational activities, including popular bars, cafes and restaurants,” he says.
Many of the suburb’s formerly run down cottages have been renovated in the last decade, he says. “The area is also attracting new residential development, like the 16- dwelling Ahuriri Villas project, which is under construction on the former site of Napier Provedoring Co’s warehouse.
“Mixed use development is strong, with the Ahuriri Business Park on the former Rothmans site hosting a range of activities including offices, restaurants and cafes.
“Ahuriri is poised to become Napier’s newest innovations hub, with the former woolstore on Bridge St being redeveloped into character offices. Telco Now and Xero are signed- up as anchor tenants.”
The site offers drive- through and around access, with a sealed and secure yard.
The three sprinkler- fitted warehouses feature stud heights of between 4.6m and 6.8m. All are built on concrete pad foundations, with profile steel walls and roofs.
The largest building occupies 1961sq m, comprising a 1737sq m warehouse with a 4.6m stud and five roller doors; a 224sq m office amenity area and a 546sq m canopy.
The office amenity area features a lined, carpeted and air conditioned office, male and female bathrooms, and a staffroom with kitchen bench.
The building is connected to the adjoining warehouse by a 123sq m canopy.
The second building, with an area of 1330sq m, has six motorised roller doors and a 6.8m stud at the knee, rising to 9.4m at the apex. An 84sq m canopy connects it to the third building, which i s the same size as the second, but has one fewer roller door and an additional canopy of 274sq m.
The property is zoned for mixed use, allowing for activities including residential, retail, aged care, day care, short- stay accommodation, education facilities and industrial.
The zone allows for a degree of consolidation and intensification of residential development while maintaining the mix of industrial and residential activities that characterise Ahuriri. Existing industry can continue within the zone under certain environmental limits, while heritage elements in terms of buildings or retention of scale are preserved.