A prominent property on a main road in Hastings is being presented to the market offering prospective purchasers the opportunity to acquire a premier split-risk investment.
Lot 1, 810 Karamu Road North in Hastings comprises 345sq m of floor area spread across three tenancies and 679sq m of land, which is part of a shared 1,509sq m site. The property is zoned Commercial Service Zone.
The building is home to a yoga studio, property management firm, and light industrial spray painting business. The current total combined annual rental income from the existing tenants is $53,006 plus GST.
The office space has recently been refurbished to a high standard alongside renewed paintwork on the exterior and roof, making this a highly appealing asset for buyers. The securely fenced property also comes with nine dedicated car parks for tenants.
Karamu Road North serves as one of the main arterial routes in Hastings and the property has visible street exposure to passing traffic. It is located near a range of high-profile businesses, including Mitre 10 Mega, The Warehouse, and Rebel Sport.
Originally constructed in 1961, the building has been well-maintained throughout the years and currently provides all tenants with their own kitchen and bathroom amenities, offering convenience for occupants.
Your Own Yoga leases 55sq m of space at the property, as well as three car parks, and they began a three-year lease in January of this year with one further right of renewal for three years leading to a final expiry of January 2028. Their lease provides $15,000 plus GST in net annual rental income.
Property management firm Quinovic leases 115sq m of office space, plus four car parks, as part of a three-year lease that began in March 2020. They have one further right of renewal for three years. Their lease provides $21,450 plus GST in net annual rental income.
Lacquerland Furniture Finishers, who specialise in painting kitchens, house doors, furniture, and splashbacks, lease 174sq m of space and are midway through a five-year lease that has one further right of renewal for five years. The final expiry on their agreement, which provides $16,556 plus GST in net annual rental income, is April 2030.
All lease agreements include rental reviews that are due to take place every two or three years.
Nankervis says the property shapes as a highly desirable purchasing opportunity given the ability to grow the rental stream in the future.
“With upcoming rent reviews, the rental income from the property could be raised to closer reflect market rates in Hawke’s Bay,” Nankervis says.
“This is a highly functional, modern premises that is user-friendly for the existing occupants and the building is in excellent order following its recent refurbishment.”
Given the zoning of the property, Nankervis says it could be repositioned in the future for a range of different purposes.
“The Commercial Service Zone is intended to primarily provide for those activities which are better located outside of the core CBD area due to the need to provide for customer car access, or for larger yard or outdoor display requirements.
“Such activities can include vehicle servicing and repair, car and machinery sales, building and garden supplies, and residential. This provides buyers with options for any future plans they may have for this site, and I believe this property will draw significant interest due to its split-risk investment appeal and future growth potential.”
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