A prominent site in Whangārei that is home to two established commercial tenants and has bare land that is ripe for development presents buyers of all kinds with the opportunity to acquire a strategic asset with long-term growth potential.
131 Port Road offers two near-new single-level office buildings and development land spanning 975sq m that is part of a 4,705sq m freehold site, zoned Waterfront Zone under the Whangārei District Plan.
The existing tenants at the property – Ray White and Sudburys – have a weighted average lease term of 8.5 years. The total annual rental income from the property is $331,539 plus operating expenses and GST.
Located in a premium spot on the waterfront, the property sits on the Hātea Loop Walkway.
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The Okara Shopping Centre is only 450m away, the CBD is easily accessible, and State Highway 1 is 3.7km away. The new marina, due for completion in the summer of 2024/25, is on the doorstep, while the Northland Events Centre is in walking distance.
Colliers Brokers Nigel Ingham, Daniel Sloper, and Matt Prentice have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 4 May, unless sold prior.
Ray White Whangarei, who occupy a 487sq m office building at the property and have access to 20 car parks, specialise in the marketing and selling, management, and renting of properties in Whang?rei and the surrounding districts.
Their 12-year lease runs until 2030 with two further rights of renewal for five years each, leading to a final expiry of April 2040. There are three-yearly market rent reviews in place.
The other tenant is Sudburys, a long-standing local firm that specialises in business advisory, including strategic direction, accountancy, HR advice, and much more.
Their premises has a gross floor area of 465sq m with a 69sq m deck. They began a 12-year lease at the property in February 2021 and there are two further rights of renewal in place for three years each leading to a final expiry of February 2039.
Their lease includes two-yearly market rent reviews, and they have access to 13 dedicated car parks.
Ingham, Director at Colliers Whangārei, says this property provides prospective purchasers with the chance to secure a highly visible site that is surrounded by amenities and outstanding views with solid income growth.
“Buyers of all kinds will be attracted to this property given it offers something for everyone. Owner-occupiers will have the chance to build and develop the empty site, while investors can develop and then lease their new building,” Ingham says.
“This is all underpinned by the split-risk investment of having two established commercial tenancies at the property who are either undergoing or due to have rental reviews, which could see their rental rates brought closer to the current market rates in the area.”
Sloper, Investment Sales Broker at Colliers Whangārei, says the zoning of the property means it is an incredibly versatile asset.
“The Waterfront Zone in Whangārei manages land use and subdivision along the Hātea River and Waiarohia Stream. The area is a popular destination for visitors and has a variety of recreational activities, tourism-focused retail, and cultural heritage sites,” Sloper says.
“The goal of the Waterfront Zone is to connect development to the waterfront, the city centre, and open spaces while protecting views and managing adverse effects.”
Prentice, Director of Sales and Leasing at Colliers, says this property is unique because it has the rare combination of a steady rental stream and development land, all while sitting in a highly desirable location.
“There is vast potential at this site, and we expect there will be significant demand in the market,” Prentice says.
- Article supplied by Colliers
