A high-quality Hawke's Bay industrial property is for sale, with an award-winning engineering firm on a long-term lease as its tenant.
The large 8094sq m freehold site, at 1019 Manchester St, Hastings, is being marketed by Chagalle Ellis and Bruce Catley of CBRE. It will be sold by deadline private treaty, closing March 7.
Ellis says the modern, well-built property is leased by McLaren Stainless, a third-generation family business based in Hawke's Bay.
It is in the Omahu Industrial Area, 4km west of the CBD. Manchester St is 500m from Omahu Rd, the main arterial route to the Napier-Hastings Expressway.
The building footprint is about 3768sq m — comprising a 3251sq m warehouse, plus 517sq m of ground floor facilities and offices. Including the first floor and mezzanine floor spaces, the total enclosed lettable area is about 4,190sq m.
Built in 2010 to a high-quality specification, the property opens onto a double height internal entrance foyer which also acts as the showcase for McLaren's world leading innovations. This area includes a meeting room, boardroom and administration offices ground level.
The second floor provides management and design offices with large windows offering a view into the warehouse, allowing interaction with other parts of the facility.
Ellis says the functional warehouse has been specifically designed with manufacturing processes in mind, having a designated raw materials entry area and finished product exiting through the extra-large sliding doors to the rear.
"The stud height of about 8.5m, rises to 10.5m at the central point of the curved roof structure. The warehouse construction supports three gantries and offers natural cross ventilation, high levels of natural light and enables the manufacturing and movement of large plant equipment such as storage tanks."
Cartley says though it was purpose-built for McLaren Stainless, the general design, layout and specification provides a generic industrial building.
"Quality construction and design offers an extremely versatile warehousing and manufacturing premises and flexibility for future use. In the interim investors will appreciate the value of having a well-established and reputable tenant."
The property is returning $380,000 pa with a 10-year-lease in place and fixed annual rental increases throughout the term, says Ellis. "A trophy asset such as this one, providing long-term income, structured rental growth and increasing returns over the term of the lease, seldom comes to market."