A mixed-use premises on the main strip in Hastings is generating investor interest, as a shortage of commercial and industrial properties available for sale across the region feeds increased investment beyond the local buyer pool.
The modern showroom and attached three-bedroom dwelling occupy 776sq m (more or less) of freehold land at 908 Heretaunga Street East, a key arterial linking Havelock North with the Hastings Town Centre.
Bayleys salesperson Michael Su says the property is offered to the market at a time of high demand for commercial and industrial property across the region, and amid sustained interest in quality assets, yields have remained stable.
“Owners have opted to hold onto their assets as the post-pandemic economy pushes ahead.
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"While they have done so, we have seen upward pressure on rental rates, with renewed optimism across the business sector continuing to feed further interest in bricks and mortar assets,” Su says.
“Hawke’s Bay’s commercial sector has traditionally been tightly-held by intergenerational owners, so when properties become available for sale, they are attracting solid local interest – but also clear enquiry from buyers across the Waikato, Manawatu-Whanganui, Wellington and Auckland.”
“Well-located property, built or refurbished to high specifications with strong tenant covenants are selling very well, very quickly, and we are witness to the wealth of capital seeking opportunities currently,” he says.
Su is marketing the Heretaunga Street East property for sale with Bayleys Hawke’s Bay commercial manager Kerry Geange.
The property will be auctioned at 3pm on Friday 14 October 2022, at Bayleys Hawke’s Bay auction rooms, 17 Napier Road, Havelock North (unless sold prior).
Comprising a total floor area of 334sq m (more or less) with six car parks located at the rear of the property on a gravel yard, two tenants generate an annual rent of approximately $85,000 plus outgoings and GST.
The road-front commercial unit spans some 224sq m (more or less) of modern showroom accommodation with a strong street presence and chiller storage suitable for use as food and beverage services.
National operator Merchant Liquor occupies the commercial tenancy with a new seven year lease.
An attached dwelling totalling 110sq m (more or less) has been recently renovated and features a modern living room/kitchen area and satisfaction of all healthy homes requirements.
A residential tenant occupies the flat with a one year fixed term.
Kerry Geange says the property’s configuration and mixed-use capability provide a split-risk opportunity for further leasing with scope for rental upside potential.
“The property has been renovated to a high standard by the current owner, with a seismic assessment of 85 percent of the New Building Standard.
“While the property presents very well as-is, upside potential exists for the new owner to continue to add value and maximise a prime position on the key arterial route through Hastings.
“The strategic location and a flat, rectangular-shaped site, with surplus yard at the rear offers add-value potential for future redevelopment, while the Suburban Commercial zoning provides for a broad range of mixed-use activities.
“Councils in both Napier and Hastings are driving transformative change in the central city areas, and improved streetscapes, creation of amenities and community facilities are high on the agenda - adding another layer of appeal for investors attracted to passive, long-term growth.
“The strength of the regional economy, underpinned by the primary sector, and supported by population growth, has flourished on the back of solid regional dynamics, including strength in the construction, retail and aged care sectors.
“Rapid growth in nearby Havelock North has added further interest in properties along urban arterials, and we see small commercial hubs continue to prove popular with both occupiers and investors,” Geange says.
- Article supplied by Bayleys
