Plenty to chew on at award- winning property
A high- profile commercial complex in Central Hawke’s Bay with a distinctive sawtooth roof design offers plenty of bite amid current market dynamics, Bayleys salespeople say.
The multi- tenanted premises on a 2126sq m freehold corner site at 9 Herbert St, Waipukurau, is in an excellent position to leverage the significant growth sweeping the region, which has created demand for prime commercial accommodation in high- traffic areas.
Bayleys Hawke’s Bay director of commercial, development and investment sales and leasing Kerry Geange says the property has hit the market at a time of recalibration for investors, with new acquisitions dominated by risk- return thinking.
“It’s not an ideal playing field, although opportunities exist in every market cycle, and this period i s no different, seeing investors focus on rental growth over capital appreciation.
“Multi- tenanted properties provide an opportunity to split risk, and the quality of tenure – with high- profile occupants at the subject property – offer certainty for lenders and potential purchasers.
“Additionally, investors are looking for opportunities to add value, with a little going a long way in terms of environmental, social and governance improvements that work well to heighten returns and increase the equity contribution in well- located assets.”
Geange is marketing the property for sale by negotiation, with Bayleys Napier colleague Jodie Woodfield.
The 1058sq m premises on SH2 features a high- profile sawtooth roof design and an award- winning interior fit- out showcasing innovative timber technology.
Five tenants occupy the premises, which generates a net annual income of around $ 156,203 plus GST and operating expenses.
■ Established regional law office DAC Legal has a lease expiring in September 2024
■ International sandwich chain Subway has a nine- year lease to July 2026 plus two sixyear renewal rights
■ Professional service provider The Surveying Company has a two- year lease to March 2025 and a one- year renewal right
■ Project manager Project Haus has a lease expiring in December 2023
■ An agricultural services provider has a two- year lease to September 2024.
Woodfield says the property i s zoned Business Zone 1– Inner Commercial, which provides for a range of potential uses, and the Central Hawke’s Bay District Council is sympathetic to new business initiatives.
There are 28 carparks and the property has a seismic assessment of 70 per cent NBS.
“An attractive lease to Subway and local professional tenants provide a substantial income with flexibility for owner- occupiers or new tenants available.
“The property is a block away from the busy high street of Waipukurau – a popular regional service centre with supermarkets and other major brands.”
The population scenario shows Waipukurau growing 17 per cent by 2031. It’s popular for those seeking a family lifestyle with easy access to the commuter belt of Napier, Hastings and Havelock North.