National buyers in mix for Taupo CBD investment
A multi-tenanted commercial building for sale in Taupo’s CBD is expected to attract national interest from add-value investors seeking a foothold in the key central North Island town.
The two-storey freehold property is home to a diverse mix of international, national and local tenants including big-name retailers, health and wellness providers, a leading hair salon and engineering firms.
Combined with its location on Te Heuheu St, a main retail and office strip in the centre of the tourism mecca, this is likely to ensure wide buyer appeal.
The property’s six tenancies generate a total net annual rental income of $141,089 plus outgoings and GST, with the potential for a new owner to increase this by refurbishing its three first-floor office tenancies.
The property at 23-27 Te Heuheu St, Taupo, is being marketed for sale priced at $2.9 million plus GST (if any) through Gary Harwood and Lisa Christensen of Bayleys Taupo.
Harwood said the offering consisted of an approximately 635sq m building on some 560sq m of freehold land, with four carparks.
“The property sits on the sunny side of the street and has dual access from both Te Heuheu St and Gallagher St, a major service lane to the rear of the building.”
Ground level is prime retail space, with three long-term tenants anchoring the investment:
■ Hair Mechanix & Co, a salon which has traded for over 25 years, occupies
108sq m with two carparks. It pays an annual net rent of $40,000 plus outgoings and GST on a lease extending to July 2022, with three further twoyear rights of renewal.
■ Some 120sq m is leased to Australasian clothing retailer Jay Jays. It pays $43,000 plus outgoings and GST a year and its current lease runs through to 2023.
■ The third ground-floor tenancy of
118sq m, with two carparks, is home to a Bay Audiology clinic. Its Taupo tenancy generates an annual net rental income of $42,000 plus outgoings and GST, on a current lease extending to the end of this year with a further three-year right of renewal.
Christensen said the upper level provided office spaces occupied by three tenants on a month-to-month basis.
“This floor is in original condition, offering the potential to refurbish and modernise the space to attract higher rental returns and long-term tenants,” she said.
The site is zoned by Taupo District Council as part of the Town Centre Pedestrian Precinct.
“This area enjoys high foot traffic and Te Heuheu St has long demonstrated its ability to attract major national and international brands. Beyond those in the property for sale, they include the likes of Rip Curl, Paper Plus, ASB Bank, OPSM, Unichem, Macpac, Robert Harris and Stirling Sports.
“This impressive line-up of tenants demonstrates the drawing power of this location in the heart of Taupo, which will underpin future tenant demand for the property. As with tenants, the interest from buyers is likely to extend well beyond Taupo,” Christensen said.