Coromandel mixed property with upside potential
The three-storey commercial and residential building for sale at 17 Monk St, Whitianga.
A multi-tenancy three-storey commercial and residential building in the heart of one of the Coromandel Peninsula’s biggest towns has been placed on the market for sale.
The partly tenanted freehold block at 17 Monk St in Whitianga contains a mix of commercial tenancies at street level, and two currently vacant residences on the upper floors.
Monk Street runs off Albert St, Whitianga’s main arterial route, and links the central business and retail area with the ferry terminal. Tenancies within the terrace-style block include:
• AON Insurance Brokers which occupies 72.5sq m of office space on a lease expiring later this year and earning $13,734 plus GST per annum;
• Coromandel Locksmiths Services Ltd renting 72.5sq m of retail space on a lease expiring next year with two further one-year rights of renewal, and generating $13,720 plus GST per annum; and
• Hair Shop salon leasing 72.5sq m of space and paying $11,400 plus GST per annum on a lease expiring later this year with two further three-year rights of renewal.
The building is being marketed for sale by auction on September 21 through Bayleys Whitianga salesperson Noel Rogers and is featured in Bayleys’ latest Total Property portfolio magazine.
Rogers says the property has substantial revenue upside by tenanting one of the vacant street-level commercial units, and both the empty residential dwellings.
“Initial discussions have begun with a potential tenant for leasing the last remaining commercial unit within the building, but at this stage of the process, that unit is being sold as vacant,” Rogers says.
“Should a tenancy be confirmed between now and auction day, it would have an obvious impact on the value being calculated by potential buyers by adding value. Similarly, the two upper-level accommodation units are being sold vacant – meaning they could be let long-term as apartments, or as short-term visitor rental accommodation, or as owner/occupier dwellings.”
Two of the retail tenancies are occupied by AON Insurance brokers and the Hair Shop salon.
The two-bedroom apartment comes with 70sq m of workshop or office space, and has an expansive open plan kitchen, dining room and lounge area leading onto a 60sq m deck, with a games room and bar on the upper level that could be converted into additional bedrooms.
A short-term accommodation unit features a double bedroom, kitchen, lounge, and bathroom and a study which could be converted into a single bedroom. Both residential units have off street parking and access at the rear of the commercial premises.
Rogers says the property has Thames Coromandel District Council certification to operate the two-bedroom dwelling as traveller accommodation, and would be instantly lettable as a short-term tourist or visitor lodging through the likes of Airbnb.
The three-storeyed 811sq m building was built in 1994 of reinforced concrete, tilt slab walls and RSJ steel, and sits on 516sq m of land.
“With a modern street frontage, good pedestrian flow off the town’s main street, and plenty of parallel street parking directly in front, the commercial tenancies within this block are easily accessible by the public,” Rogers says.
“The vacant unit would suit a small commercial professional services tenant such as an accounting firm, IT consultancy, health service practice, or graphic design house.” Thames Coromandel District Council last month announced it was entering the ‘design phase for a $3.4 million town centre upgrade in Whitianga, with more funding being allocated from the council’s infrastructure renewal budget.
The upgrade will include streetscaping for the town centre to be completed by 2019 aimed at better connecting Whitianga’s waterfront areas with the retail hub which includes Monk St. The council’s intention is to generate more off-peak season visitor numbers to Whitianga.
“The council’s investment is a positive endorsement of commercial activity in Whitianga and showcases its commitment to sustaining Whitianga as the predominant service town for the Eastern Coromandel - stretching from Whenuakite in the south to Whangapoua in the north,” Rogers says.