The large, versatile industrial warehouse and office/showroom property sits at a prominent corner in Onekawa with excellent access to main arterial routes.

It is fully leased to anchor tenant McIndoe Kitchens, a leading Hawke’s Bay provider of kitchen renovations, fittings and design, alongside national housebuilding and commercial cleaning firms, a renowned dance studio and a local car audio and auto-electrical business.

The tenancies generate a total net rental income of $93,200 plus outgoings and GST per annum.

The property at 2 Dunlop Road, Onekawa, Napier, is now being marketed for sale by auction on Friday 29 July, through Mark Evans of Bayleys Napier.

Evans said the approximately 1,570-square metre building sat on some 2,652 square metres of land.

The landholding comprises two leasehold titles. Each is on a 21-year perpetually renewable term with over 16 years before the next review, based on 5 percent of freehold land value.

The Main Industrial-zoned site comes with plentiful car parking and yard areas along with a new boundary fence.

“The building comprises a timber widespan truss-style warehouse of some 1,180 square metres, plus a 360-square metre office/showroom annex.

“The structure has an A-grade seismic rating of 80 percent of new building standard.

“Originally built in the 1970s, it has since undergone several rounds of alterations and generally provides well renovated and modern accommodation through a mix of landlord and tenant fit-out improvements,” Evans said.

The property is configured with six tenancy areas, which are fully leased to five tenants with a weighted average lease term of 2.6 years.

Alongside McIndoe Kitchens are national housebuilder Platinum Homes, automotive supplier East Coast Soundz and Auto Electrical, the Heather Brunsdon School of Dance and the established Hawke’s Bay franchise of commercial cleaning brand Cleantastic.

Evans said there was the potential for a new owner to add value as leases are considered to be under market rental.

Tenant businesses benefit from the property’s dual access and nearly 90 metres of frontage to Dunlop and Carnegie roads.

“This prime corner site is highly visible to traffic entering the Onekawa industrial precinct from Taradale Road, a main arterial route connecting Napier’s industrial and residential areas. It is also ideally positioned to connect to the Hawke’s Bay Expressway, and through to Napier’s CBD, Hawke’s Bay Airport and Napier Port,” Evans said.

Neighbouring occupiers include national brands such as Resene, Mico and Skeinz.

Evans expects the Dunlop Road site to pique the interest of a range of buyers.

“This offering will appeal to investors and owner-operators looking to the future and may also attract interest from investors with the capital to explore any future opportunity to acquire the freehold title,” he said.

Click here for more information on the listing.