One of Napier’s most recognisable office buildings is being presented to the market for sale for the first time.
18-26 Bower Street, Napier is a multi-level building on the CBD fringe that has 1,951sq m of total net lettable floor area on a 1,538sq m site.
The property, which has a commanding street presence, is zoned Fringe Commercial under the City of Napier District Plan.
With 13 distinct tenancies, the property, known as Bower House, provides a compelling split-risk investment opportunity.
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The total annual net rental income is approximately $389,015 plus GST and many of the occupants have lease agreements that run into the 2030s.
The strategically located property is a five-minute walk from Emerson Street, which is Napier’s main retail strip and provides access to a range of shopping options.
There are 22 on-site car parks offering convenience for occupants.
Ash Hames, Commercial Broker at Colliers Hawke’s Bay, has been exclusively appointed to market the property for sale via deadline private treaty closing at 3pm on Wednesday 5 April, unless sold prior.
Originally constructed in the 1980s, the building has been well maintained during the past few decades and has received recent upgrades that underscore the investment in the asset from the current owners.
The property spans three levels, which are split into north and south wings. With 13 tenancies, each office has its own kitchen area and meeting rooms along with an open plan element, and all offices are easily accessed via two ground floor entrances, two internal stairwells, and two lifts.
The current configuration of the building sees the tenancies range in size from 38sq m to 328sq m with the tenancy mix comprising a health and beauty spa, legal firm, a surveying and engineering consultancy, Health Hawke’s Bay, the local Citizens Advice Bureau, and several government agencies, among others.
The lease agreements across the building include a range of different review mechanisms, providing future rental growth for the new owner.
Hames says the highly functional property is one of the premier office assets in Hawke’s Bay.
“The generous amount of glass windows provides for a warm and appealing working environment, which is an all-important factor for businesses when considering their next move,” Hames says.
“With a complementary mix of tenants in place, this is a highly desirable purchasing opportunity for buyers given there is built-in rental growth through a mix of market and CPI rent reviews.
“Discerning investors will be drawn to the opportunity to acquire a prime asset that provides a steady rental stream.”
The location of the property is in the heart of the main office precinct in Napier, which contains a number of professional service firms, mixed with large format retailers.
This area will only become even more sought-after with the new Briscoes and Rebel Sport development taking place on Munroe Street. Big brand retailers Noel Leeming and The Warehouse are adjacent to the subject site.
Hames says this top-tier property is a passive investment that ticks all the boxes.
“Given this is being presented to the market for the first time since it was built it shows how tightly held this asset is. I encourage all interested parties to contact me immediately to ensure they don’t miss out on the chance to acquire this outstanding property.”
- Article supplied by Colliers
