The large 5059m² parcel of land on State Highway 2 in Hastings for sale can offer a variety of income streams for a savvy investor. PHOTO/SUPPLIED
The large 5059m² parcel of land on State Highway 2 in Hastings for sale can offer a variety of income streams for a savvy investor. PHOTO/SUPPLIED
The well-known Bay Espresso cafe site in Hastings is up for sale.
Located on a busy road between Napier and Hastings, the large 5059m² parcel of land on State Highway 2 in Hastings is for sale by negotiation, through Colliers International.
Colliers International sales broker Danny Blair said the siteoffered a variety of income streams for a savvy investor.
Currently, Bay Espresso and Johnny Appleseed holds the two leases on the site which bring in a net rental income of around $165,574 per year - with potential for this to increase.
The front portion of the cafe is leased to Bay Espresso, housing a cafe and car parking to the side. The long-standing tenant owns a chain of successful cafes throughout Hawke's Bay, on a three year term with further rights of renewal.
On the back part of the section, six self-contained units, a house, and garaging is leased to local orchard and fruit production company Johnny Appleseed.
The accommodation is used to house up to 45 seasonal workers for six months of the year with Johnny Appleseed recently signing a new five year lease. The remaining six months is leased on short term stays which had always had 100 per cent occupancy.
Mr Blair said there were multiple opportunities for the new owner, and significant possibilities for future development opportunities.
The high volume of traffic on State Highway 2 meant the site's roadside visibility had been significant for Bay Espresso's business. With opportunities to develop the land, this high profile could benefit a new business, as well as easy access to both Napier and Hastings cities.
"As more seasonal workers flock to Hawke's Bay with thousands of jobs projected to be created as part of the Recognised Seasonal Employers (RSE) scheme by 2020, the accommodation side of this property should always expect good demand," Mr Blair said.
"With current land shortages for development in Hawke's Bay, this versatile piece of land is a great option. It is in a prime road front location with huge profile.
"A new owner could keep as is, with a steady income stream and flat whites galore, or develop in the future."
Although the site was up for sale, Bay Espresso owner Chris Jarvis assured that their business would not be moving from the SH2 location.
