Chance to fuel future development in Napier
The land and buildings of a highly visible commercial property in the Napier suburb of Taradale are being presented to the market for sale and offer buyers the opportunity to acquire an asset with a steady rental stream and development potential.
366-368 Gloucester Rd, Taradale, is spread across two separate titles and is home to a community hall, formerly occupied by St John, and a Caltex service station which has a five-year lease on its location that runs until 2027 and provides $80,200 plus GST in net annual rental income.
There are also two further rights of renewal available for five years each, leading to a final expiry in 2037.
The property, which is being sold as a single offering, is zoned Main Residential by Napier City Council under their Operative District Plan.
The community hall at 366 Gloucester St, is available with vacant possession and provides the new owner with options as they could use it for their own needs or potentially reposition it.
The location is approximately 10 minutes from Napier’s CBD and offers convenient access to nearby amenities such as food and beverage outlets.
Owner-occupiers, investors and developers will have interest in this property given there is considerable potential alongside an incomegenerating tenant.
Colliers brokers Daniel Moffitt and Danny Blair are marketing the property via deadline private treaty closing 1pm, Wednesday May 8, unless sold prior.
Metro Fuels Ltd, trading as Caltex, has occupied 368 Gloucester St since 2005. The service station has a 168sq m showroom and amenities space, 145sq m workshop, mezzanine storage and amenities areas, a 270sq m canopy and yard space.
Its lease also includes two-yearly rent reviews providing further income potential for the new owner.
The hall has a 106sq m office and kitchen area in the front of the building and 144sq m of hall space at the rear. There is also 49sq m of mezzanine area. The property includes eight carparks.
A market estimate from Colliers from December 2023 suggests the hall could be leased for approximately $40,000 plus GST annually.
Moffitt says the property enjoys a strong road presence and multiple entry points.
“The new owner will have the option of leasing the hall, which could be used by a range of community or social groups, or potentially developing the property given the site’s favourable size and shape. Vacant possession provides another layer of convenience meaning any plans to use the hall could be enacted rapidly,” Moffitt says.
“The steady rental stream on offer from the established neighbouring tenant means the new owner can strategically plan their future moves for the property without extensive cost pressures. Built-in rental reviews will add further appeal for prospective purchasers.”
Napier has a population of approximately 63,000 and is known for its art deco buildings, popular beaches and accessibility to wineries across the wider Hawke’s Bay region.
Taradale is home to the Eastern Institute of Technology, a tertiary education provider that offers more than 150 qualifications to students. It is also a popular residential location that has potential for further growth.
Blair says Hawke’s Bay continues to attract local and national capital as the recovery continues following the extreme weather of early 2023.
“This property is perfectly positioned for a notable development in the coming years and buyers with a long-term view will recognise the value on offer that will allow them to create something that will shape the future look of Taradale,” Blair says.