Opportunity for owner-occupiers and investors to secure property on a high-profile Napier retail strip
The closure of New Zealand Post’s Taradale branch has created an opportunity for owner-occupiers and investors to secure a vacant property with holding income on a high-profile Napier retail strip.
Colliers International has been exclusively appointed to market the 194sq m property at 264 Gloucester Street, Taradale, for sale by deadline private treaty.
Offers close at 4pm on Wednesday 22 May, unless it is sold earlier.
Dan Walker of Colliers Hawke’s Bay says the property’s vendor is a group of private investors while its outgoing tenant is New Zealand Post Limited.
“The tenant has already closed its PostShop and Kiwibank services at the premises and is in the process of vacating the property.
“With four months remaining on the lease, a new owner will be able to draw on $3,050 a month in short-term holding income before taking vacant possession on 1 September.
“Owner-occupiers will appreciate the extra income while planning towards a September move-in date to make the most of the summer retail trade period.
“Investors will be able to bank a few months of rental income while securing a new tenant and extracting some upside on the investment.”
Walker says the property is currently under-rented at $36,600 net per annum.
“With an assessed market rental of $42,000 to $48,000 net per annum, there is scope to make an immediate rental gain with a new tenant.”
The property is located at the centre of Taradale’s main retail strip, between Big Barrel Liquor and NZCU Bank.
“This popular location is supported by well-known local and national brands including national banks, eateries and specialist retailers.”
New Zealand Post is vacating the premises as it replaces standalone PostShop branches with independent postal service franchises in the likes of supermarkets, pharmacies, book shops and convenience stores.
More than 800 of New Zealand Post’s 880 service points are already run as franchises.
Postal services in Taradale are now offered at Paper Plus, located near the vacated premises at 285 Gloucester Street.
Kiwibank continues to provide banking services at its Napier South and Marewa branches.
New Zealand Post has agreed to complete extensive ‘make good’ work to deliver 264 Gloucester Street as a blank slate for the new owner.
These make good works will include:
- Removal of all tenant fixtures and fittings, including partition walls but excluding the walls in the toilet and kitchen area to the rear;
- Removal of the post office box lobby door, and reinstatement of the shopfront glazing to inline frontage;
- Interior plastering and patching where required, with walls to be painted plain white;
- Removal of floor coverings to a bare floor, and;
- Make good on any damage.
The property is zoned Suburban Commercial, which allows for a range of retail and commercial uses.
Walker says it benefits from a strong retail catchment that is drawn from the predominantly middle-class residential suburb of Taradale.
“This popular suburb offers a good range of amenities including a library, sports grounds and many parks and reserves.
“Taradale also acts as a gateway to some of the region’s best-known wineries, with the nearby Mission Estate and Church Road wineries attracting more than 300,000 tourists every year.”
Napier is the main centre of the Hawke’s Bay – despite a smaller population than neighbouring Hastings – due to its proximity to the seaport and main airport that service the region.
It is a popular tourist destination with a unique concentration of 1930s Art Deco architecture, built after much of the city was razed in the 1931 Hawke's Bay earthquake. Thousands of people flock to Napier every February for Art Deco Weekend.
The city has also become an important grape and wine production area, with the grapes grown around Hastings and Napier being sent through the Port of Napier for export.