The Hawke's Bay headquarters for one of the world's biggest accounting and financial advisory companies, PWC, has been placed on the market for sale.
As well as PWC as the anchor tenant the four-storey office block on the corner of Raffles St and Munroe St in Napier houses 23 other, smaller tenancies - including Fuji, the Department of Internal Affairs, Barter Card and a range of small and localised professional services firms.
The 3688sq m of freehold commercial floor space generates net annual rental income of $496,064. The building - which has a new build standards rating of 89 per cent - sits on 1152sq m of fringe commercially zoned land, which also encompasses 33 on-site carparks.
A traffic monitoring survey reports that Monroe St is one of Napier's busiest arterial routes, carrying high volumes of traffic in to and out of the city centre, while Raffles St carries medium-to-high traffic volumes as a link road to the suburbs.
The property is being jointly marketed for sale by tender through Bayleys Napier and Bayleys Manukau in Auckland, with tenders closing on November 2.
Salesmen Sam MacDonald and Ben Bayley said the office block, built in 2007, was split into four separate unit titles - which were being marketed either individually or in any combination.
Unit one involves much of the ground floor and part of the first floor. The ground floor has two entry lobbies, two 12-person capacity lifts, and toilets, with a stairwell accessing both the basement and upper floor levels.
Unit two encompasses a single ground-floor tenancy with frontage to Munroe St and is occupied by the Caci Clinic. Unit three on the first floor is separately owned and is excluded from the listing.
Unit four is the entire second floor which is partitioned off into nine individual tenancies, while unit five is the entire third floor occupied by PWC. The Napier branch is one of seven PWC regional locations in New Zealand, with the firm employing more than 1300 people across the network.
All levels of the Munroe St/Raffles St block have separate air-conditioning systems. The basement car-parking level is accessed by a remote-controlled roller door, with a lift and internal stairwell access to the upper levels.
Mr MacDonald said there was an opportunity to increase yield in the property by leasing the currently 6 percent of vacant office space. The Napier City Council fringe commercial zoning identifies the CBD-belt around the Munroe St/Raffles St locale as suitable for hosting commercial, retail and warehousing type activities.
"The property at 36 Munroe St is considered to have a moderate risk profile in comparison with other commercial properties in the locality. The weighted average lease terms of less than three years are shorter than would be expected for this type of building, and improvement to the lease profiles would improve its risk rating," Mr MacDonald said.
Mr Bayley said that while the building had experienced some early 'teething issues', these had been rectified.
He said additional cosmetic refurbishment to the basement level would further alleviate concerns about the building's overall condition. The basement level is 950sq m, while the upper levels of commercial space are all about 1000sq m.