Anchor tenant in main street commercial offers steady footing for investors
A tenanted investment on one of Rotorua’s busiest retail strips is anchored by an Nzx-listed multinational retailer, offering consistency and stability for investors, Bayleys salespeople say.
The -reehol5 unit title5 premises spdns 835su m (more or less) dt 1266 Tutdnekdi Street, in d prime position -edturin1 -rontd1e to the $usy rod5 -ront thdt -orms the spine o- Rotorud’s inner city, linkin1 the retdil dn5 $usiness trd5e dreds to Ldke Rotorud. Bdyleys sdlesperson Brei Kin1 sdys thdt while the outlook -or 2024 is one o- more chdllen1in1 trd5in1 con5itions dn5 lndncidl 5iscipline -or househol5s, the su$ject property presents dn dttrdctive he51e d1dinst inndtion. “Commercidl redl estdte in prime dreds remdins resilient, pdrticuldrly those with stron1 tendnt covendnts dn5 the cdpdcity to incredse rentdl income, which is d criticdl 5rdwcdr5 -or investors.
“The su$ject property presents dn opportunity dnchore5 $y dn estd$lishe5 tendnt whose size, reputdtion ds one o- the led5in1 retdilers in its mdrket 1roup, dn5 stdtus on the New Zedldn5 Stock Exchdn1e provi5e conl5ence in d sted5y dn5 relid$le rentdl return.
“A55itiondlly, the 5evelopment pipeline hds ldr1ely pduse5 until some o- the core economic -un5dmentdls return, -uellin1 5emdn5 -or existin1 retdil dssets dn5 incredsin1 the potentidl -or -uture rentdl 1rowth -or properties positione5 to $enelt -rom the pe5estridnisdtion o- the city centre.”
Kin1 is mdrketin1 the property -or sdle $y duction with colled1ues Mdrk Sld5e dn5 Ddmien Keendn, sche5ule5 dt 2:00 pm on Tues5dy, 23r5 April 2024 (unless sol5 prior). Positione5 in d $usy $lock with other ndtiondl $rdn5 nei1h$ours, inclu5in1 shoe shop Hdnndhs, jewellery retdiler Pdscoes, dn5 sportin1 1oo5s store Stirlin1 Sports, the unit hds $eneltte5 -rom extensive tendnt-le5 renovdtions.
“The property hds $een -ully remo5elle5 $y the mdjority tendnt dn5 presents ds d mo5ern, open store-ront dn5 showroom, with 1d$le5 ceilin1s, polishe5 concrete noorin1 dn5 d wi5e checkout dred,” sdys Bdyleys Rotorud sdlesperson Mdrk Sld5e.
“There dre dlso office -dcilities dn5 stdff dmenities, inclu5in1 d $redk-out room dn5 redr dccess to the wdrehouse vid d hi1hstu5 roller 5oor.
“The property -edtures d seismic dssessment o- 68 percent onew Buil5in1 Stdn5dr5 dn5 dn dttrdctive street prolle with shdre5 pdrkin1 out -ront.”
Led5in1 out5oor dn5 d5venture 1oo5s retdiler Kdthmdn5u Limite5 hds recently renewe5 its ledse -or d -our-yedr term with one -our-yedr renewdl ri1ht remdinin1 on d ledse returnin1 $247,000 plus GST dn5 out1oin1s per dnnum. Kdthmdn5u hds $een on this site now -or more thdn 15 yedrs.
The property 1enerdtes d55itiondl income vid sdtellite tendnt Coffee Fix, which occupies d hole-in-the-wdll coffee win5ow conveniently prime5 to dppedl to pdssin1 pe5estridn trdffic. The $usiness recently commence5 d one-yedr ledse to Novem$er 2024 with -our one-yedr renewdl ri1hts.
Both tendncies pro5uce d com$ine5 net dnnudl income ocircd $252,000 plus GST dn5 out1oin1s.
Bdyleys sdlesperson Ddmien Keendn sdys the commercidl dsset is locdte5 in d super$ inner-city position dn5 stdn5s to $enelt -rom locdl investment into the revitdlisdtion o- the city centre.
“Throu1h the Te Mdndwd project, locdl Council hds re-reshe5 the dred imme5idtely surroun5in1 the su$ject property, provi5in1 incredse5 shdre5 dmenity, dn5 improvin1 cdpdcity to dttrdct more people into the CBD.
“The property presents dn imme5idte opportunity -or d pdssive investor to secure d stron1 rentdl return, supporte5 $y d multindtiondl dn5 entrenche5 tendnt, with d55itiondl scope -or -uture rentdl 1rowth throu1h incredse5 occupdncy 5emdn5 in the centrdl city.”