Long leases a feature of Whangarei property
Aerial view of the property for sale 119 Port Rd, Whangarei.
A multi-tenanted investment Northland property in a popular commercial location of Whangarei has been put on the market.
“It has a strong and diversified income stream, backed by three national brand tenants,” says Jimmy O’Brien of Colliers International who, in conjunction with Peter Peeters of NAI Harcourts, is selling 119 Port Rd by deadline private treaty closing on October 7, unless it sells earlier by negotiation.
“This property offers investors an attractive mix of multiple income streams from well-known tenants, long leases and a location in an established and successful commercial location,” says O’Brien.
Peeters says the tenants, VTNZ, Midas and CrossFit Whangarei, contribute total annual net rental income of $207,632.
“The split risk nature of this investment property and the length of the leases are expected to be big drawcards for buyers,” he says.
“Multi-tenanted investments are popular among buyers, because owners are still able to collect income from the other leases if one occupier moves out.
“A key attraction is the assurance of the very long 21 year lease VTNZ has taken.”
The property is made up of two modern light industrial buildings with a total net lettable area of 1293 sq m.. One building is entirely occupied by VTNZ and the other is shared between Midas, which occupies the front section facing Port Rd, and CrossFit Whangarei.
The property occupies a 4047 sq m Mixed Use zoned leasehold site with a 51metre frontage to Port Rd.
O’Brien says the site is leasehold in perpetuity with the tenants paying 100 per cent of the leasehold costs. It includes a large sealed yard with drive around access and off street parking.
VTNZ’s building is 787 sq m in size and includes a covered entrance, customer waiting area, office and vehicle checking bays. The business’ lease extends until February 2029. VTNZ, which began operating as a state owned enterprise in 1994, is now a private company with 82 testing stations nationwide..
Vehicle servicing specialist Midas occupies a 305 sq m unit on an eight year lease expiring in August 2016 at which time the company has the right to renew for a further six year term. Midas has provided vehicle servicing from branches throughout New Zealand since 1988.
Crossfit Whangarei is Northland’s newest Crossfit gym and occupies a 199 sq m unit on a lease expiring in January 2017 with the right to renew for three further terms of two years each.
All the leases have regular rent reviews built in providing the potential for income growth.
Peeters says the property is situated in an established commercial and retail area on the fringe of Whangarei’s city centre.
“This is a progressive retail and industrial location, known locally as the Okara retail precinct. There are several other well-known occupiers here including Courier Post, The Warehouse, The Clearance Shed and Save Barn.”
The property is also close to the Okara Shopping Centre, which is home to several well-known retail outlets including Lighting Plus, Rebel Sport, Briscoes, Dick Smith and Kmart.
“This area attracts heavy traffic volumes with upwards of 13,000 vehicle movements a day on Port Road,” Peeters says.
“The high-profile exposure to Port Rd makes it a very popular location with many businesses seeking premises along the road.”
Jimmy O’Brien, Colliers International (left) & Peter Peeters, of NAI Harcourts (right).