Standout commercial investment at 2 Puketapu Road in leafy Taradale

Fully leased, multi-tenanted commercial investment property tenanted by Tremain Real Estate

A fully leased, multi-tenanted commercial investment property with massive exposure and superb tenant covenant is for sale in the well-heeled Napier suburb of Taradale.

Anchored by Tremain Real Estate on a 10-year lease, the 697sq m property at 2 Puketapu Road occupies a commanding position on the high-profile, northeast-facing corner of Gloucester Street.

The property returns $153,532 in net annual rent from a strong blend of five quality tenants, with a weighted average lease term of more than four years.

Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 10 July, unless it is sold earlier.

Broker Dan Walker says it is a standout investment opportunity underpinned by impressive fundamentals.

“This property is the complete package. The high-profile location, multiple income streams, excellent tenant covenant and lease terms are all top-notch.

“Throw in the modern, low maintenance building, an A-grade 100 per cent seismic rating, and a hint of rental upside, and you can’t really go wrong.”

The strength of the location is evidenced by the presence of an ANZ Bank branch and a McDonald’s restaurant on the opposite corners, Walker says.

“Both sites are trumped by 2 Puketapu Road, which faces north and east and gets all-day natural light.

“The property comprises a modern two-storey commercial building on a 417sq m site with Suburban Commercial zoning.

“It is leased to four office tenants and a popular local cafe, providing a split-risk income flow. Several leases are notably under-rented, providing future upside to this passive investment opportunity.

“A tight supply of office space through the upper-class suburb of Taradale will continue to apply pressure to the markets rental rates.”

2 Puketapu Road Taradale Napier

Anchor tenant Tremains occupies 220sq m on the ground floor with frontage to both corner streets. The 10-year lease returns $56,675 in net annual rent, with two rights of renewal of five years each providing a final expiry date in January 2038.

Founded in Hawke’s Bay by All Black and rugby legend Kel Tremain in 1970, Tremains is a leading real estate company that has grown significantly into new markets.

The company offers commercial and rural property services under the Colliers International brand in Hawke’s Bay and other regional centres in the central North Island.

Well-regarded local cafe Source occupies a 159sq m ground-floor retail tenancy on a three-year lease returning $41,650. Final expiry is in May 2026, with two rights of renewal of three years each.

Source focuses on creating fresh, healthy, home-made food using seasonal, home-grown or locally sourced produce where possible.

It offers a full breakfast and lunch menu as well as a selection of sweet treats, sandwiches and savoury food items in its cabinet.

Sandbrook Law occupies a 75sq m ground floor tenancy on a four-year lease returning $18,500. Two rights of renewal of four years each make for a final expiry date in February 2031.

Established by barrister and solicitor Karl Sandbrook, the firm’s legal services include residential, commercial, agribusiness and rural law, as well as trusts, estates, asset protection, succession planning, family and employment law.

WellNZ occupies an 84sq m first-floor office on a three-year lease returning $21,175. A three-year right of renewal makes for a final expiry date in December 2023.

WellNZ works with organisations to manage injured employees through comprehensive rehabilitation by specialist case managers.

The company helps businesses to take advantage of the ACC Accredited Employers Programme and provides injury self-management options from four offices across New Zealand.

Computer Solution Engineering occupies 77sq m on the first floor. Its three-year lease returns $19,000, with two rights of renewal of three years each providing a final expiry date in November 2026.

The company has 30 years of experience solving business problems with efficient software solutions. Its software covers a range of uses including crop management, packaging, supply chains and sales.

All five leases return $157,000, less $3,468 in unrecoverable outgoings, making for a total net rent of $153,532 per annum.

Taradale is predominantly a middle-upper class residential suburb located some 10km southwest of Napier’s CBD.

It has an estimated population of 18,000 residents, making it one of the most populous parts of Napier, which has some 63,100 residents.

Taradale’s commercial strip mostly comprises of one main street, Gloucester Street, which the property for sale enjoys prominent corner frontage to.

The Gloucester Street strip is mostly limited to smaller boutique retail businesses servicing the needs of the local community.

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