The land and buildings of a prominent, and highly recognisable, corner property in Waipukurau presents prospective purchasers with the opportunity to acquire a prime split-risk investment with future growth potential.
Waipukurau is located approximately 50km south-west of Hastings and is the largest town in the Central Hawke’s Bay District.
9 Herbert Street in Waipukurau has a total floor area of 1350sq m on 2126sq m of freehold land and offers significant profile for people entering the town from the north.
The multi-tenanted site provides total net annual rental income of $147,604, while there is vacant office space with a garage and storage area in the building, which allows scope to secure further rental income.
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The property has 28 on-site car parks offering convenience for staff and customers alike.
Colliers Brokers Calum Ironside and Danny Blair have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 15 December, unless sold prior.
DAC Legal, a local law firm, is the anchor tenant and they commenced a five-year lease on 15 September 2019 and have two further rights of renewal for five years each leading to a final expiry of 14 September 2034.
Their lease provides $101,250 in net annual rental income and there are multiple rent reviews in place that will ensure steady rental growth for the new owner.
Project Haus began a two-year lease on 5 January 2021, and they have two further rights of renewal for two years each.
Their agreement provides $18,387 in net annual rental income and a market rent review will take place on each renewal.
Subway, the popular sandwich chain, began a nine-year lease at the property on 1 August 2017 and have two further rights of renewal for six years each leading to a final expiry of 31 July 2038.
Their lease provides $30,100 in net annual rental income and includes market rent reviews that are scheduled to be held every two years.
Ironside, Industrial and Commercial Sales Broker at Colliers Hawke’s Bay who was named the Commercial & Industrial Rising Star of the Year at the 2021 REINZ Awards for Excellence in September, says the property has excellent street profile.
“This is one of the most recognisable sites in Waipukurau and has been for close to two decades following a full renovation of the property in 2003 and 2004,” Ironside says.
“The renovation involved the existing property being fully converted from a traditional sawtooth warehouse into a highly functional, modern office space with additional retail and office tenancies.
“The property has a strong tenant covenant, which will hold significant appeal for buyers searching for a premier split-risk asset that provides passive income.”
Blair, Director at Colliers Hawke’s Bay, says the property offers room to grow and the new owner will have the chance to add significant value.
“The vacant office space, and garage and storage area could be leased separately or in a joint offering and market estimates suggest it could provide nearly $20,000 in additional annual rental income,” Blair says.
“Alternatively, an owner-occupier may wish to make the most of their newly acquired property and utilise the space for their own endeavours.
“This well-maintained, modern and functional property is sure to pique the interest of a wide range of buyers.”
- Article supplied by Colliers
