The Harvest Lodge Motel in Havelock North has sold to a well-known local property investor for a record-breaking low yield.
The 19-unit property on Havelock Road is among the top-rated motels in Hawke's Bay, with a five star Qualmark rating.
It sold this week at a yield of 4.54 per cent, the sharpest yield in history for a Hawke's Bay commercial property.
Danny Blair of Colliers International Hawke's Bay, who brokered the deal, says the motel attracted unprecedented levels of inquiry.
• Hawke's Bay property prices reach record numbers, but for how long?
• Number of Hawke's Bay properties sold drops to 4-year-low as prices climb in 'seller's market'
• Hawke's Bay's property prices continue to soar but sale numbers take a dip
• Record property sale: One of Hawke's Bay's finest homes sells for more than $4m
"The property has exceptional fundamentals that proved irresistible to investors, leading to an unconditional sale only six days after we listed it.
"Prospective buyers were attracted to the quality modern buildings, long 21-year lease, excellent tenant covenant, strong trading history, and superb central location in Havelock North," Blair said.
"All of these factors were underpinned by the strength of the Hawke's Bay tourism sector, which has been characterised by a significant increase in independent leisure visitors in recent years."
Blair says offers started flooding in soon after the property was listed on Thursday last week.
"I'm thrilled that our vendor was able to realise an impressive 4.54 per cent yield – which is the lowest on record for a commercial property sale in the Hawke's Bay.
"This would certainly be one of the main highlights in my 14-year career in commercial real estate."
The property was purchased by Hawke's Bay investor Graeme Fowler, who owns some 80 residential rental properties.
Fowler has authored several books on residential property investment and is a regular commentator in the national media.
He said he has brought the property as a rental investment and has no plans to make any changes as it is a successful business and motel already operating the site.
"It's great to see such a well-known residential investor putting his money into the local commercial property market," Blair said.
"The commercial and industrial property sectors in the Hawke's Bay continue to go from strength to strength, driven by strong demand from investors and occupiers."
Built in 2002, the Harvest Lodge Motel offers luxury self-catering accommodation. Its spacious studio and apartment guest rooms are all well-appointed with kitchenettes and ensuite bathrooms.
The motel also includes a separate three-bedroom manager's accommodation, double garage, commercial laundry and commercial kitchen.
The property is only 270m from the heart of Havelock North, 5km from Hastings and 26km from Hawke's Bay Airport.
Blair says Colliers Hawke's Bay is set for another record-breaking year on the back of 2018, when the office was named Small Commercial and Industrial Office of the Year at the 2019 REINZ National Awards for Excellence.
"The Colliers Hawke's Bay team has sold over $1 billion dollars of commercial and industrial property across the region over the last decade – a huge number for the size of the Hawke's Bay region."