High-profile property in Hastings up for grabs
One of central Hastings’ most prominent commercial buildings is for sale, offering prospective purchasers the opportunity to acquire a prime, fully tenanted property in a tightly held market.
507 Eastbourne St West (pictured right) is a twostorey, 1900sq m building that sits on 2370sq m of freehold land and provides 72 car parks. The property is zoned Commercial Service Zone under the Hastings District Plan.
The well-maintained property is home to six established tenants and provides $389,196 plus GST in total net annual rental income.
Directly opposite is 510 Eastbourne St West, a
909sq m landholding used for car parking by the tenants and is also being sold as part of this offering.
Colliers’ Danny Blair has been appointed to market the properties for sale by deadline private treaty closing at 4pm on Wednesday 11 May, unless sold prior.
The offering is expected to generate significant buyer inquiry given its prominent position, with Hastings CBD only moments away, while the city’s main arterial routes are easily accessible, as well as the Hawke’s Bay Expressway, enhancing connectivity to other parts of the region.
New Zealand’s largest meat processer and marketer Silver Fern Farms leases 380sq m and 15 car parks on a three-year term. It began in March 2021 and they have one further right of renewal for three years.
NZ Apples & Pears leases 369sq m and 13 car parks on a six-year agreement that started in June 2019. They have one further right of renewal for four years.
Accountancy firm Epplett & Co. leases 383sq m of space and 13 car parks on a six-year term that began in December 2017. They have one further right of renewal for four years.
Incoming tenant Competenz have signed a new two-year lease on 140sq m of space and five car parks, which begins on 1 May. They have one further right of renewal for two years.
Assure Quality leases 313sq m of the building and 13 car parks on a three-year term that began in April 2021. They have two further rights of renewal for three years each. Greenstone Insurance leases 200sq m of space and seven car parks on a five-year agreement that began in September 2021. They have two further rights of renewal for three years each.
Blair says the property has been exceptionally maintained through recent upgrades and provides a strong tenant covenant.
“This is an outstanding split-risk investment opportunity given the tenants represent some of the region’s most established businesses who are committed to the building with long-term leases in place,” Blair says.
“Most of the leases also include rent reviews on renewal, providing a further selling point for buyers who will recognise the potential to grow the rental income in the coming years. The property is located near a range of amenities, including a busy Pak’N Save and local cafe.”
Data from Stats NZ shows Hastings and the wider Hawke’s Bay region have experienced consistent population growth during the past decade, which has contributed to a boost in the region’s GDP.
“The employee count across Hastings has grown from an estimated 42,100 in 2016 to 48,000 in 2021, which shows the area is continuing to expand and is on an upward trend,” Blair says. “We have seen investment capital from within the region continue to enter the commercial property sector, but the growth of the area has also proven highly attractive for buyers from outside of Hawke’s Bay.”