Bottom drawer investment
A high-profile, nationally tenanted property for sale on Whangarei’s top retail street presents an opportunity to secure a handsfree investment in a regional growth market.
The property at 9 Rathbone Street comprises a recently strengthened,
438sq building on a 478sq m freehold site.
It is fully occupied by established national tenant Harvey Furnishings, providing long-term passive income with locked-in rental growth.
Colliers International commercial property sales specialists Jimmy O’Brien and Tony Allsop are marketing the property for sale with Megan McGregor of Ray White Whangarei.
Offers by way of deadline private treaty close at 4pm on September 30.
O’Brien says it is an opportunity to purchase a freehold retail asset in a top regional location.
“The property offers exceptional tenant covenant from a long lease to New Zealand-owned company Harvey Furnishings, which has been making and retailing window furnishings since 1958.
“The lease, backed by a ninemonth bank guarantee, will return $112,750 in net annual rent from October, with the tenant continuing to cover all maintenance costs for another year.
“There are five years remaining on the current lease term, with a further six-year right of renewal extending the total lease term to December
2030.
“Rental growth is secured throughout the length of the lease, with a combination of fixed 2.5 per cent annual increases and market rental reviews.
“With the current low interest rate environment, this is a chance to secure a good yielding investment that will allow you to just sit back and collect the rent.”
Allsop says the property is well positioned on Whangarei’s main shopping street between two other national tenants, ASB and Subway.
“It comprises a single-level retail building, constructed in the 1930s and recently strengthened to a modern standard of at least 67 per cent of NBS,” Allsop says.
“The construction is of concrete foundations, a mixture of concrete block and brick external cladding, aluminium joinery, and iron roofing on timber rafters and beams.
“The air-conditioned retail area is of a generic layout, with the main retail area to the front and an office, lunchroom and two bathrooms at the rear.”
Allsop adds: “The rear of the building also contains a split-level storage area, with internal ramp access between and a side roller door providing access to a service lane.”
The property is zoned Business 1, which allows for development of up to 25 metres in height, and would be rezoned to City Centre in the future if the proposed Whangarei District Plan is adopted.
The City Centre zone is intended to be a focal point for the district and aims to provide vital retail, service, business and recreational needs for residents, while also providing a key destination for visitors.
The council anticipates significant growth and investment will occur within the city centre zone, with the goal of providing a safe, pleasant, vibrant, diverse and high-amenity environment.