Two neighbouring commercial properties in Hastings are being presented to the market for sale, offering prospective purchasers the opportunity to acquire one or both assets.
923 Southampton Street West is home to a 715sq m purpose-built childcare facility and cafe that sits on a 2,465sq m freehold site.
205 Davis Street, currently tenanted by a church, has 1,021sq m of floor area on a 2,757sq m freehold site.
The total net annual passing income from both properties is $494,947 plus GST. The properties are zoned Hastings General Residential.
Start your property search
The building at 205 Davis Street can be acquired with vacant possession or the existing occupants can remain on a new two-year lease, meaning owner-occupiers, developers, and add-value investors will have interest in the property as there is considerable potential attached to it.
The properties are located close to the Stortford Lodge suburban commercial area and within 2km of the Hastings CBD.
Recreational grounds are directly opposite the subject properties adjoining the Stortford Lodge Saleyards. The surrounding developments are largely residential.
Colliers Hawke's Bay Director Danny Blair has been exclusively appointed to market the properties for sale via negotiation.
923 Southampton Street West is a childcare facility that is licensed for 108 preschool children, including 40 under 2 years of age.
The building was constructed in 2015 to a very high standard and the interior provides modern fixtures and fittings to all areas and modern interior decor throughout.
The fully fenced property has a 67sq m cafe, 81sq m first-floor office, and 569sq m of space on the ground floor.
Busy Bees Aotearoa, a nationally recognised childcare provider, has a long-term lease at the property that runs until 2030 and there are multiple rights of renewal in place leading to a final expiry of March 2045.
The Little Saints Cafe began a six-year lease in February and there are three rights of renewal for two years each, leading to a final expiry of January 2035.
Strong Property Group leases office space on the first floor of the building.
The total annual rental income from the property is $344,947 plus GST.
205 Davis Street, which is located on a prominent corner site, was refurbished in 2017, seismically upgraded, and developed into a contemporary church featuring a 500-seat auditorium that spans 336sq m.
The building also includes a 242sq m internal gymnasium, foyer, kitchenette, office accommodation, and storage rooms.
The C3 Church Hawkes Bay Trust has a two-year lease at the property that will commence on settlement with three further rights of renewal for two years each.
The rental income from the property is $150,000 plus GST per annum.
Blair says there are a range of possibilities available to purchasers given the differing nature of the respective properties.
Busy Bees Aotearoa has more than 75 centres across New Zealand and a decade of experience in the childcare sector.
Their presence at 923 Southampton Street West provides passive investors with a strong tenant covenant and makes it an asset with a steady rental stream, Blair says.
Meanwhile, the property at 205 Davis Street has the potential to be repositioned or developed, while it may suit an owner-occupier. The new owner may choose to retain the existing tenant and lease the property.
"Acquiring both properties would be a major addition to someone's portfolio, or they may attract separate purchasers. These are trophy assets in Hawke's Bay."
Article supplied by Colliers
