A modern, multi-tenanted corner property in the middle of Whitianga's commercial centre and on the Coromandel’s town’s main street will go under the hammer at the end of this month.
Situated on the corner of Albert and Lee Sts, the property has three tenants in a 260sq m building, that was constructed in the1990s, on a 313sq m freehold site.
Tides cafe, a tourism business Lost Springs which sublets the main part of the tenancy to insurance broking company Aon; and Tech Solutions, lease the property at 47 Albert St, paying total annual net rent of $69,221 plus GST.
The property has a Thames Coromandel District Council rating valuation of $900,000, and is being marketed for sale by auction at noon on Thursday June 27 by Josh Smith of Bayleys Hamilton.
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“This property ticked all the boxes for property investment – a modern building, in a prime commercial location with having multiple tenancies that provide split risk income,” Smith says.
Designed to maximise site coverage and taking advantage of its prominent corner location, the property is accessed by a service lane giving rear access to all three tenancies, allowing ease of loading and unloading of goods.
“Split into three tenancies, the biggest floorplate on the corner is occupied by Tides Cafe and gets exposure from all angles. The two smaller tenancies have their entrances off Albert and Lee Sts,” says Smith.
“Tides is a popular cafe offering breakfast, lunches, morning and afternoon teas in Whitianga's competitive hospitality industry with a reputation for its friendly atmosphere.”
The cafe signed a lease in November 1999 that was varied this year to include two five year rights of renewal, finally expiring in 2032 at annual rent of $31,989 plus GST. The cafe pays 45 per cent of the building's operating expenses.
The Lost Springs Te Wai Ngaro business operates geothermal hot springs, a day spa and a restaurant. It only uses the front window of its tenancy for advertising - capitalising on the road-front location and the busy street to attract business.
It sublets the office space in the tenancy to insurance broking and risk management company Aon which has prominent signage on the building.
The lease sits with Lost Springs and a two-year term was signed in 2014 with three 2-year rights of renewal, potentially finally expiring in February 2022; and generating annual rent of $21,632 plus GST. The company pays 40 per cent of the building's operating expenses.
Tech solutions is a niche outlet providing service and accessories for mobile phones, computers and tablets. One of two stores operating out of the head office in Auckland, this branch has recognised the need to be in Whitianga to provide a service to both locals and tourists.
The tech’ company signed a four-year lease in November 2018 with three further 2-year rights of renewal, potentially finally expiring in November 2026, and pays annual rent of $15,000. It also contributes 15 per cent of the property's operating expenses.
Smith says the tidy, well-presented property is zoned Commercial (8A) in the Thames Coromandel District Council plan.
“The tenancies are suitable for a wide range of activities and the building would suit a buyer who can add it to an existing property portfolio.”
He says Whitianga has a permanent population of 4000 and is the fastest growing town on the eastern seaboard of the Coromandel Peninsula. The Thames Coromandel District Council recognised Whitianga as its ‘trophy town’ and completely redeveloped Albert St in 2018, and is now investing in upgrading the town's green spaces, parks and playgrounds.
Whitianga Waterways development is the largest canal housing project in New Zealand with 700 canal-front residential sections, airfield and other lots that will integrate waterfront retail, tourism accommodation, apartments and other facilities when completed. The project has brought a large number of permanent residents to the town.
