A multi-tenanted investment property in a sought-after commercial location in Whangarei is on the market for sale.
119 Port Road, Whangarei, is being marketed jointly by Jimmy O’Brien of Colliers International and Peter Peeters of NAI Harcourts. It is for sale by deadline private treaty closing on October 7, unless it sells earlier.
“This property offers investors a desirable mix of multiple income streams from well-known tenants, long leases and a location in an established and successful commercial location,” says O’Brien.
The tenants, VTNZ, Midas and CrossFit Whangarei, together contribute total annual net rental income of $207,632, with the split-risk nature of the investment and lease length expected to be big drawcards for buyers, says Peeters.
“The property has a strong and diversified income stream, backed by three national-brand tenants. Multi-tenanted investments are continually popular among buyers, because owners are still able to collect income from the other leases if one occupier moves out,” he says.
“The other key attraction of these tenancies is the very long 21-year lease VTNZ has taken. This provides long term assurance and will be a key attraction for purchasers.”
The property is made up of two modern light industrial buildings with a total net lettable area of 1293sq m. One building is entirely occupied by VTNZ and the other is shared between Midas, which occupies the front section facing Port Rd, and CrossFit Whangarei.
The leasehold site includes a large sealed yard which provides drive-around access and off-street parking.
VTNZ’s building is 787sq m in size and includes a covered entrance, customer waiting area, office and vehicle checking bays. The business’ lease extends until February 2029.
VTNZ, which began operating as a state-owned enterprise in 1994, is now a private company with 82 testing stations nationwide.
Vehicle servicing specialist Midas occupies a 305sq m unit on an eight-year lease expiring in August 2016, at which time the company has the right to renew for a further six-year term. Midas has provided vehicle servicing from branches throughout New Zealand since 1988.
Crossfit Whangarei is Northland’s newest Crossfit gym. The business occupies a 199sq m unit on a lease expiring in January 2017, with the right to renew for three further terms of two years each.
All the leases have regular rent reviews built in, providing the potential for income growth.
The property occupies a 4047sq m mixed-use zoned site, with a 51-metre frontage to Port Rd. It is located in an established commercial and retail area on the fringe of Whangarei’s city centre, says Peeters.
“This is a progressive retail and industrial location, known locally as the Okara retail precinct. There are several other well-known occupiers here including Courier Post, The Warehouse, The Clearance Shed and Save Barn.”
The property is also close to the Okara Shopping Centre, which is home to several well-known retail outlets including Lighting Plus, Rebel Sport, Briscoes, Dick Smith and Kmart.
This area attracts heavy traffic volumes, with upwards of 13,000 vehicle movements a day on Port Road, Peeters says.
“The high-profile exposure Port Rd provides occupiers have meant that the area has emerged as a very popular location for many businesses to seek premises.”