Split-risk Wairau Valley investment duo
The property at 171 Target Rd, Wairau Valley has Bedstop as its anchor tenant. Photo / Supplied
Two North Shore investment properties, anchored by established furniture companies on long-term leases, are being marketed as split-risk investments.
The high-profile properties, on main roads in the sought-after Wairau Valley industrial area,are being marketed by Shoneet Chand, Matt Prentice and Euan Stratton of Colliers International.
Nationwide bedroom furniture company Bedstop is the anchor tenant at 171 Target Rd, a 2896sq m freehold property with a floor area of 1697sq m.
Bespoke kitchen, furniture and fitout company DBJ Furniture anchors the second propertyat 2-4 Woodson Place, on the corner with Ellice Rd.
Prentice says the sale represent excellent opportunities to secure substantial landholdings with multiple incomes streams.
The Woodson Place offering, which is being marketed by deadline private treaty closing on Wednesday, March 29, generates annual rent of $210,766.
The property, on two stratum titles forming one body corporate, has a lettable floor area of 1964sq m, and has good exposure on the corner of Ellice Rd, one of the main roads in the area, leading off the Target Rd arterial route.
Long-standing tenant DBJ Furniture has seven years remaining on two separate leases, with a further right of renewal for six years.
Founded in 1994, the award-winning company is a niche manufacturer with a staff of 35 specialising in residential and commercial kitchens, furniture and fitouts.
The Amen Korean Methodist Church occupies the road frontage ground and first floor office.
Chand says the sale is a rare opportunity to secure a large Wairau Valley corner site.
“This multi-tenanted investment offers massive exposure in a low vacancy and tightly-held area.”
DBJ Furniture is a long-standing tenant at 2-4 Woodson Place - identified by blue border. Photo / Supplied
The Light Industry-zoned property is especially attractive due to its full drive-around access with multiple roller doors, Chand says.
The 171 Target Rd property is being sold by deadline private treaty closing on Wednesday April 12 and earns annual rent of $215,277 plus GST.
Stratton says the property offers huge exposure on Target Rd, which is one of two main arterial routes in the area.
“We rarely see such substantial landholdings with multiple income streams on the market in Wairau Valley,” he says.
Anchor tenant Bedstop is on a six-year lease with a six-year right of renewal, generating$150,000 per annum.
Stratton says the company is a nationwide retailer that has earned an excellent reputation through stocking quality, leading bed and bedroom furniture brands without compromising good value.
“Bedstop is an ideal tenant for investors seeking solid rental returns.”
Six other tenants offer a split risk, diversified income stream of $65,277 in annual rents.
The property comprises two separate buildings with a mixture of showroom, warehouse and office space.
Bedstop occupies 1288sq m, including two showroom areas. The rear of the building has multiple roller doors leading to warehousing and a mezzanine office.
Computers Unlimited, on a three-year lease, pays $14,000 per annum, and has road-front profile with a 46sq m showroom.
A first-floor office area with multiple tenants has good quality separate office suites.
The property has concrete paving with drive-around access and ample on-site parking.
Target Road is one of two main arterial routes running through Wairau Valley, along with Wairau Rd. Woodson Place is a short drive away.
The Wairau Valley industrial area is the largest and longest established North Shore industrial precinct, surrounded by a large skilled labour force and with good motorway access.
Shoneet Chand, Matt Prentice and Euan Stratton, Colliers International