While you were sleeping investors bought these 9 Napier and Hastings CBD commercial investment properties at yields ranging from 6.2% to 13.7%…
With a focus on Hawkes Bay, we report on 12 commercial investment properties in Napier CBD and Hastings CBD sold recently by Colliers International.
39 Carlyle Street, Napier
- Features: 710m2 retail premises with 10 car parks and seismic rating of 67% NBS on 1,528m2 site. Occupied by Aarons Emporium but sold with vacant possession.
- Rent: $113,600 net p.a. (estimated market rental; $160/m2)
- Outcome: Sold for $1.575 million to owner/occupier Super Loans
- Yield: 7.2% based on rental estimate
56-60 Munroe Street, Napier
- Features: 910m2 retail premises in 3 titles on 1,139m2 site. Vendor warranty to strengthen all buildings to 67% NBS and fix faulty roof. Five tenants with WALT of 2.6 years. The vendor, Copas Plumbing & Electrical, has a leaseback at $25,000 p.a. for one of the tenancies.
- Rent: $126,000 net p.a. ($138/m2)
- Outcome: Sold for $1.665 million after being on the market for 9 months.
- Yield: 7.7%
61 Tennyson Street, Napier
- Features: 767m2 character building with seismic rating of 70% NBS on 856m2 site in the financial/legal quadrant of Napier’s CBD. Leased for 10 years from September 2017 to a legal firm. Vendor warranty to remediate roof as a condition of settlement.
- Rent: $163,000 net p.a. ($212/m2)
- Outcome: Sold for $2.65 million
- Yield: 6.2%
24A Hastings Street, Napier
- Features: 346m2 ground floor premises in a Historic 2 status building in the art deco quarter. Located in a prime position on Hastings Street, currently leased on a short term basis to award winning Indian restaurant, Indigo.
- Rent: $50,000 p.a. (estimated market rent based on current condition; $145/m2)
- Outcome: Sold for $800,000
- Yield: 6.3% based on rental estimate
253 Gloucester Street, Taradale, Napier
- Features: 282m2 unit titled retail shop with seismic rating of 79% NBS. Leased for 5 years from September 2018 with 2 x 4-year RoR.
- Rent: $54,000 net p.a. ($191/m2)
- Outcome: Sold for $850,000
- Yield: 6.4%
225-233 Gloucester Street, Taradale, Napier
- Features: 440m2 floor area comprising 4 retail tenancies on a 669m2 site. Off-market sale.
- Rent: $59,100 net p.a. ($134/m2)
- Outcome: Sold for $650,000
- Yield: 9.1%
200 Warren Street North, Hastings
- Features: 360m2 building on a 356m2 site previously occupied by a private training organisation. Sold with vacant possession.
- Rent: $52,000 net p.a. (estimated market rental; $144/m2)
- Outcome: Sold for $380,000
- Yield: 13.7% based on rental estimate
- Comment: Amazing yield but good luck finding a tenant without having to discount the guts out of the rent due to the high competition from many office vacancies in Hastings CBD. At a more competitive $100/m2 though, it’s still 9.5% yield. However, we do not have any information on the earthquake rating.
200 Heretaunga Street West, Hastings
- Features: 844m2 retail premises with 5 tenancies on 1,161m2 site. Glassons Holdings (Hallensteins) paying $85,000 p.a. for 258m2 ($329/m2) on 5-year lease from May 2018 with 2 x 5-year RoR. Just Jeans paying $70,000 p.a. for 214m2 ($327/m2) on 4-year lease from October 2018 with no RoR. Thai Orchard Restaurant paying $26,600 p.a. for 132m2 ($202/m2) on 6-year lease from July 2016 with 1 x 6-year RoR. Kapo Maori paying $16,600 p.a. for 87m2 ($190/m2) on 5-year lease from May 2016 with 2 x 5-year RoR.
- Rent: $225,200 net p.a. ($267/m2 average)
- Outcome: Sold for $2.8 million to an out of town investor
- Yield: 8%
700b Warren Street North, Hastings
- Features: 110m2 building (basically a tin shed) previously occupied by Freedom Curtains. Sold with vacant possession.
- Rent: $15,000 net p.a. (estimated market rental; $136/m2)
- Outcome: Sold for $215,000
- Yield: 7% based on rental estimate