Commercial -
Award-winning sawtooth has bite
A high-profile commercial complex with a distinctive sawtooth roof design offers plenty of bite amid current market dynamics, Bayleys salespeople say.
The multi-tenanted premises on a 2,126sq m (more or less) freehold corner site at 9 Herbert Street is in an excellent position to leverage the significant growth sweeping Central Hawke’s Bay, creating 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 is 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 – at the subject property being high-profile occupants – 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.”
Mr Geange is marketing the property for sale by negotiation with Bayleys Napier colleague Jodie Woodfield.
The 1,058sq m (approximately) commercial premises on State Highway 2 features a high-profile sawtooth roof design and an award-winning interior fit-out showcasing innovative timber build technology.
Five tenants occupy the premises, which generates a net annual income of circa $156,203 plus GST and OPEX.
The occupancy breakdown is as follows:
- 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 six year 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 and;
- An agricultural services provider has a two year lease to September 2024.
Bayleys Hawke’s Bay salesperson Jodie Woodfield says the property is 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 car parks, and the property has a seismic assessment of 70 percent of New Building Standard (NBS).
“An attractive lease to international brand Subway, and local professional tenants provide a substantial income, with flexibility for owner-occupiers or new tenants available.
“The subject property is a block away from the busy high street of Waipukurau – a popular regional service centre among supermarkets and other major brands.”
The medium population scenario for the local area shows Waipukurau growing 17 percent by 2031.
“The local area has fast-become a home to many entering the region and those seeking a family lifestyle within the easy commuter belt of Napier, Hastings and Havelock North.
“Meaningful commercial growth is taking place to service a strengthening residential catchment, providing a future opportunity to repurpose the subject property with multiple diverse tenancies or conversion as high-end residential.
“Situated on a high-profile corner among major retailers, the location is exceptional, with future development options providing flexibility and strong growth fundamentals increasing for the affordable investment in the current market for investment buyers.”
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