Standout commercial investment
A fully leased, multi-tenanted commercial property with massive exposure and superb tenant covenant is for sale in the Napier suburb of Taradale.
Anchored by Tremains Real Estate on a 10-year lease, the 697sq m property at 2 Puketapu Rd occupies a commanding position on the high-profile, north east-facing corner of Gloucester St, Taradale’s main throughfare..
The property returns $153,532 in net annual rent from five quality tenants, with a weighted average lease term of more than four years.
Colliers International has been appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday July 30, unless it is sold earlier.
Broker Dan Walker says it is a standout investment opportunity underpinned by impressive fundamentals.
“This property is the complete package. The high-profile location, multiple income streams, excellent tenant covenant and lease terms are all top-notch.
“Throw in the modern, lowmaintenance building, an A-grade 100 per cent seismic rating, and a hint of rental upside, and you can’t really go wrong.”
The strength of the location is evidenced by the presence of an ANZ Bank branch and a McDonald’s restaurant on the opposite corners, Walker says.
“Both sites are trumped by 2 Puketapu Rd, which faces north and east and gets all-day natural light.
“The property comprises a modern two-storey commercial building on a 417sq m site with suburban commercial zoning.
“It is leased to four office tenants and a popular local cafe, providing a split-risk income flow. Several leases are notably under-rented, providing future upside to this opportunity.
“A tight supply of office space through upper-class Taradale will continue to apply pressure to the market’s rental rates.”
Anchor tenant Tremains occupies
220sq m on the ground floor with frontage to both corner streets. The
10-year lease returns $56,675 in net annual rent, with two rights of renewal of five years each providing a final expiry date in January 2038.
Founded in Hawke’s Bay by Kel Tremain in 1970, Tremains is a leading real estate company that has grown significantly into new markets.
The company offers commercial and rural property services under the Colliers International brand in Hawke’s Bay and other regional centres in the central North Island.
Well-regarded local cafe Source occupies a 159sq m ground-floor retail tenancy on a three-year lease returning $41,650. Final expiry is in May 2026, with two rights of renewal of three years each.
Sandbrook Law occupies a 75sq m ground floor tenancy on a four-year lease returning $18,500. Two rights of renewal of four years each make for a final expiry date in February 2031.
Established by barrister and solicitor Karl Sandbrook, the firm’s legal services include residential, commercial, agribusiness and rural law, as well as trusts, estates, asset protection, succession planning, family and employment law.
WellNZ occupies an 84sq m firstfloor office on a three-year lease returning $21,175. A three-year right of renewal makes for a final expiry date in December 2023.
Computer Solution Engineering occupies 77sq m on the first floor. Its three-year lease returns $19,000, with two rights of renewal of three years each providing a final expiry date in November 2026.
All five leases return $157,000, less $3468 in unrecoverable outgoings, making for a total net rent of $153,532 per annum.