An award-winning, multi-tenanted retail property is for sale in a strategic Napier location that is set to undergo significant urban renewal.
Colliers International has been exclusively appointed to market 56-60 Munroe Street for sale by deadline private treaty closing at 4pm on Wednesday 12 December, unless it sells earlier.
The property is located directly opposite the planned site of a large format shopping centre anchored by Briscoes and Rebel Sport, which will bring significantly more retail traffic to the area.
Located on three adjoining titles, the property comprises three commercial buildings of various ages.
The disparate building frontages received a redesign in 2007, giving the property a modern and unified style and colour scheme that nods to Napier’s Art Deco heritage.
Designed by Dougan Larkworthy Team Architects, the upgrade received the Gisborne Hawke’s Bay Architecture Award.
Colliers International Broker Dan Walker suggests there are three ways to view this opportunity.
“Firstly, it is an ideal passive investment. The property has two solid anchor tenants, both signed to new leases, which together account for 64 per cent of the property’s combined rental income.
“Secondly, the property is well located in as fast-developing area. The planned shopping centre across the road will complement existing amenity such as the nearby Pak’nSave supermarket, driving even further growth.
“Thirdly, there’s potential for rental growth, while separate titles give an incoming owner flexibility and liquidity.
“With its solid investment fundamentals, growth location and the potential for capital and rental gains, this multi-tenanted retail investment ticks all the boxes.”
Zoned Fringe Commercial, the property has a net lettable area of 910sq m on a 1,140sq m site.
It is occupied by five tenants on affordable leases, returning some $125,000 in net annual rental income. The lease expiry dates are staggered from July 2020 through to 11 years from settlement.
The building at 56 Munroe Street, constructed in the 1980s, has a net lettable area of 310sq m on a 380sq m site. It is tenanted by successful small business Tenant Ace Pawnbrokers.
The retail and rear storage unit at 58 and 58A Munroe Street was built in the 1960s. It has a net lettable area of 400sq m on a 380sq m site.
The retail unit is occupied by Disability Training Services, while the rear storage unit is occupied by heat pump specialists Butler and Hewitt, which owns and occupies premises two doors down.
The property at 60 and 60A Munroe Street, built in the 1990s, has a net lettable area of 200sq m on a 380sq m title.
It is tenanted by longstanding business Copas Plumbing and Electrical and natural health care spa Kawakawa Care NZ.
The property is located across the road from a site known locally as the ‘gravel pit’, where Briscoe Group’s new shopping centre is being developed by Napier hapu Mana Ahuriri.
Mana Ahuriri Trust, which was set up to manage the hapu’s recent Waitangi Tribunal settlement, plans to invest $100 million in commercial property in the area.
“The development of this site will considerably enhance this location, adding more traffic to the area,” says Walker.
“The presence of Pak’nSave 100m down the road already brings significant traffic to this area. Further growth will cement this area as a key destination on the fringe of the CBD.”
Get the latest commercial real estate insights and property news.
Looking for commercial real estate? Try our property search or connect with expert commercial real estate agents today.
Need your real estate assessed? Work with our expert property valuation services team.
Looking to develop your career in property? Learn about careers at Colliers.