A high-profile, nationally tenanted property for sale on Whangārei’s top retail street presents an opportunity to secure a handsfree investment in a regional growth market.
Located at the heart of Whangārei’s CBD, the property at 9 Rathbone Street comprises a recently strengthened, 438sq building on a 478sq m freehold site.
It is fully occupied by established national tenant Harvey Furnishings, providing long-term passive income with locked-in rental growth.
Offers by way of deadline private treaty close at 4pm on Wednesday 30 September, unless the property is sold earlier.
O’Brien says it is an opportunity to purchase a freehold retail asset in a top regional location.
“This superb passive investment is located on a high-profile site in the heart of central Whangārei – the engine room of Northland’s economy, which accounts for half the region’s GDP.
“The property offers exceptional tenant covenant from a long lease to New Zealand-owned company Harvey Furnishings, which has been making and retailing window furnishings since 1958.
“The lease, backed by a nine-month bank guarantee, will return $112,750 in net annual rent from October, with the tenant continuing to cover all maintenance costs for another year.
“There are five years remaining on the current lease term, with a further six-year right of renewal extending the total lease term to December 2030.
“Rental growth is secured throughout the length of the lease, with a combination of fixed 2.5 per cent annual increases and market rental reviews.
“With the current low interest rate environment, this is a chance to secure a good yielding investment that will allow you to just sit back and collect the rent.”
Allsop says the property is well positioned on Whangārei’s main shopping street between two other national tenants, ASB and Subway.
“It comprises a single-level retail building, constructed in the 1930s and recently strengthened to a modern standard of at least 67 per cent of NBS.
“The construction is of concrete foundations, a mixture of concrete block and brick external cladding, aluminium joinery, and iron roofing on timber rafters and beams.
“The air-conditioned retail area is of a generic layout, with the main retail area to the front and an office, lunchroom and two bathrooms at the rear.
“The rear of the building also contains a split-level storage area, with internal ramp access between and a side roller door providing access to a service lane.”
The property’s tenant, Harvey Furnishings, is a New Zealand owned and operated window treatments and soft furnishing specialist.
In business for more than 60 years, it has five stores in Auckland and three other regional stores in Hamilton, Tauranga in Palmerston North.
Customers range from homeowners through to businesses and large government departments. Harvey Furnishings has also benefited from the recent post-lockdown boom in home improvement.
Each Harvey Furnishings store has a comprehensive range of readymade curtains, blinds, cushions, throws, bedding and a wide range of fabrics for immediate purchase off the roll. In addition, there are thousands more fabrics available to order.
The property is zoned Business 1, which allows for development of up to 25m in height, and would be rezoned to City Centre if the proposed Whangārei District Plan is adopted.
The City Centre zone is intended to be a focal point for the district and aims to provide vital retail, service, business and recreational needs for residents, while also providing a key destination for visitors.
The council anticipates significant growth and investment will occur within the city centre zone, with the goal of providing a safe, pleasant, vibrant, diverse and high-amenity environment.
Whangārei is New Zealand's northernmost city, with a total population of 87,700 across the district. It is only two hours north of New Zealand’s economic hub, Auckland, which provides easy access to the country’s largest domestic market as well as a gateway to all international markets.
Access to international markets is also provided at Northport, the deep-water commercial port at Whangārei’s Marsden Point. This is the northernmost multi-purpose port in New Zealand, and the closest to most of New Zealand's international markets.