Leasehold interest in warehouse building for sale

5:09 PM Friday November 15, 2019 True Commercial

Much of the property at 60-64 Thames Street, Napier, is home to Napier Provedoring Company. Photo / Supplied

The leasehold interest in the land and building housing one of the Hawke’s Bay’s biggest recreational boating supplies stores is on the market for sale.
Much of the property at 60-64 Thames Street in the Napier suburb of Pandora is home to Napier Provedoring Company which stocks thousands of items utilised by recreational and commercial boaties – ranging from anchors, ropes and chains, through to fishing gear and maritime safety equipment.
The property consists of three large warehousing and office buildings sitting on 3,735 square metres of leasehold land across three individual titles. The largely-rectangular shaped property at 60 – 64 Thames Street is zoned Main Industrial under the Napier City Council District Plan, and is bordered by the council-owned Ahuriri Estuary Walk reserve facing onto the inner-harbour.
Marine retailer Napier Provedoring Company relocated to its portion of the Thames Street premises in 2016, and is now on a lease running through to 2021 with two further five-year rights of renewal. Currently generating gross income of $57,500 plus GST, a rent review is due in 2020.
The buildings at 60 and 62 Thames Street consist of two large portal frame industrial-style warehouses – one of 700-square metres and the other of 450-square metres –  sustaining the open-plan showrooms and manufacturing workshop for Napier Provedoring Company, complete with full height doors and lifting gantries.
The various neighbouring warehouses on the site are connected by a shared wall frame– allowing for paletised product stocking throughout the showroom floor under a 4.62 metre high-stud ceiling supported by steel pillars and beams.
Office, storage, and staff amenities space at the front of two of the warehouses is utilised for Napier Provedoring Company’s administration activities.
Meanwhile, the vacant structure at 64 Thames Street features a 460 square metre stand-alone single-storey office block built in 1994. The building contains a mix of offices and workshops, and is separated from the larger Napier Provedoring Company warehouses by a formed driveway which provides access to a fully sealed parking and hardstand space at the rear of all the properties.
Commercial use space within the currently untenanted building encompasses a reception, boardroom, several offices, open plan area, a staff lunchroom and kitchen, a north-facing courtyard and employee bathroom amenities.
The ground lease for the property is calculated at five percent of the land value per annum.  The current 21-year ground lease rental of $29,500 plus GST per annum is due for review  in 2033.
The multi-faceted property at 60-64 Thames Street is now being marketed for sale by tender through Bayleys Napier, with tenders closing on December 5. It features in Bayleys’ latest Total Property portfolio magazine. Bayleys Napier salespeople Mark Evans and Kerry Geange said the property’s broader tenancy schedule and physical attributes meant it had potential for either an owner-occupier buyer, or from a tenanted investment perspective.
“Base income at 60 – 64 Thames Street is being generated from the Napier Provedoring Company tenancy. The remaining revenue potential or occupancy option comes from the adjacent commercial premises,” Mr Evans said.
“The considerable amount of sealed yard space at the rear of the commercial building would sustain a trades-based entity reliant on a workforce driving a fleet of utility, service van, or delivery truck sized vehicles.
“Such a tenancy would sit well within the Main Industrial zoning – with Pandora being Napier’s second largest industrial precinct after Onekawa.”