A four-storey Napier building, housing the Hawke's Bay headquarters of accounting and financial advisory firm PwC as the anchor tenant, has been placed on the market.
Along with PwC, the office block on the corner of Raffles and Munroe Sts in Napier, houses 23 smaller tenancies including Fuji, the Department of Internal Affairs, Barter Card, and a range of small and local professional services firms.
Featured in Bayleys' latest Total Property portfolio magazine, the prominent corner property is being jointly marketed through Sam MacDonald of Bayleys Napier and Ben Bayley of Bayleys Manukau and is for sale by tender closing on November 2.
Combined, the 3688sq m of commercial floor space generates net annual rent of $496,064. The building occupies an 1152sq m freehold Fringe Commercial zoned site which encompasses 33 on-site carparks and has a new building standard (NBS) rating of 89 per cent.
MacDonald says the predominantly rectangular-shaped office block was constructed in 2007 of reinforced concrete foundations with reinforced concrete precast panel walls, concrete and timber framing and long-run steel roofing.
"It was split into four separate unit titles which are being marketed for sale either individually or in any combined permutation," MacDonald says.
Unit one comprises 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 its frontage to Munroe St and is occupied by the Caci Clinic.
Unit three on the first floor is separately owned and excluded from the listing.
Unit four is the entire second floor which is partitioned 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 their own separate air conditioning systems. The basement car parking level is accessed by a remote-controlled roller door, with lift and internal stairwell access to the upper levels.
The building has been issued with a Code of Compliance Certificate by Napier City Council and has a building warrant of fitness issued in 2016.
MacDonald says the yield of the well-presented property could be increased by leasing the six per cent of currently vacant office space. The Napier City Council's 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," he says.
Bayley says the building experienced some early 'teething issues' but these have been rectified and appropriately acknowledged by the issuance of both a Code of Compliance certificate and building warrant of fitness.
He says that 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 in size.