Art Deco precinct investment tenanted by Lumino The Dentists
An entry-level commercial investment property in the heart of Napier’s Art Deco heritage precinct is for sale with a lease to national tenant Lumino The Dentists.
Colliers International has been exclusively appointed to market 157 Tennyson Street, Napier South, by way of deadline private treaty.
Offers close at 4pm on Thursday 18 October, unless the property sells earlier.
The property comprises a 120sq m dental practice on a 251sq m freehold site.
Broker Dan Walker, of Colliers International’s Napier office, says it is a superb chance to invest in a CBD property at an affordable price point.
“Dentistry isn’t going out of fashion anytime soon, and Lumino is happy to call 157 Tennyson St home,” he says.
“This is an outstanding property from an investment point of view, with a great tenant and an affordable rental rate.
“The property comprises a low-maintenance, seismically strengthened standalone building with five on-site car parks.
“The lease offers consistent income growth with regular CPI rent reviews to improve your cashflow, resulting in asset value appreciation.
“At an entry-level price point, this is an investment anyone can sink their teeth into."
Walker says the property, tucked behind an office block, was formerly on the same title as the historic Napier Fire Board building next door.
The historic Fire Board building was recently refurbished, strengthened and converted into residential apartments.
The property for sale was originally a house that has subsequently been converted for use as a dentistry practice.
The premises now include two surgeries, two bathrooms, a sterilising room, staff room and reception area.
Five car parks are located around the perimeter of the building, with three along the northern side, one on the eastern side, and one covered park on the southern side of the building.
The property is zoned Art Deco Quarter, which is essentially a commercial CBD zone paying tribute to Napier’s two to three main streets, which are almost entirely comprised of Art Deco buildings.
Napier’s Municipal Theatre is two doors down from the property for sale, with a two-storeyed council carpark separating the two. The Clive Square Reserve is across the road.
Three blocks to the east is Napier’s waterfront and Marine Parade, while 200m to the west is Carlyle Street, a busy strip on Napier’s commercial fringe.
“The location is relatively low profile, but extremely close to all of the city’s services – and arguably, it couldn’t be more fitting for a dental practice or similar business,” Walker says.
Tenant Lumino The Dentists is signed to a three-year lease returning $22,273 plus GST in net annual rent.
The lease expires at the end of June 2020, followed by two rights of renewal of three years each.
Lumino was founded in 2002 when Abano Healthcare purchased Geddes Dental’s portfolio of 12 Auckland dental practices. The Lumino The Dentists brand was established three years later.
The company has acquired more practices at the rate of eight to 10 per year. It passed the 100-practice milestone in May 2016 and continues to grow at its established rate.
Parent company Abano Healthcare is an NZX-listed company with thousands of New Zealand shareholders, both directly as well as indirectly through their KiwiSaver schemes.
Walker says Napier has a smaller population than the neighbouring city of Hastings but is regarded as the main centre of the Hawke’s Bay due to its proximity to the region’s seaport and main airport.
The popular tourist city is famous for its unique concentration of 1930s Art Deco architecture, which was built after much of the city was destroyed in the Hawke’s Bay earthquake in 1931.
The city plays an important role in the Hawke’s Bay region’s viticulture industry, with the grapes and wines produced around Hastings and Napier being sent through the Port of Napier for export.
Large amounts of sheep's wool, frozen meat, wood pulp and timber also pass through Napier annually for export.
Tennyson Street is Hawke’s Bay’s most photographed street, rich in Art Deco character.
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