The property at 157 Tennyson St has a 120sq m dental practice. Photo / Supplied
The property at 157 Tennyson St has a 120sq m dental practice. Photo / Supplied
An entry-level commercial investment property in Napier's Art Deco heritage precinct is for sale with a lease to national tenant Lumino The Dentists.
The property at 157 Tennyson St, Napier South, comprises a 120sq m dental practice on a 251sq m freehold site. It is being marketed by deadline privatetreaty through Colliers International, with offers closing at 4pm on October 18, unless sold earlier.
Agent Dan Walker says it provides an opportunity to invest in a CBD property at an affordable price point. "Dentistry isn't going out of fashion anytime soon, and Lumino is happy to call 157 Tennyson St home," he says.
"From an investment point of view, there's a great tenant and an affordable rental rate. The property comprises a low-maintenance, seismically strengthened standalone building with five on-site car parks. The lease offers consistent income growth with regular Consumer Price Index rent reviews that promise to improve cashflow, resulting in asset value appreciation. At an entry-level price point, this is an investment anyone can sink their teeth into."
Walker says the property, tucked behind an office block, was formerly on the same title as the historic Napier Fire Board building next door. That building was recently refurbished, strengthened and converted into residential apartments.
The property for sale was originally a house that has subsequently been converted for use as a dentistry practice. The premises now include two surgeries, two bathrooms, a sterilising room, staff room and reception area.
The property has two surgeries, two bathrooms, a sterilising room, staff room and reception area. Photo / Supplied
Five car parks are located around the perimeter of the building, with three along the northern side, one on the eastern side, and one covered park on the southern side of the building.
The property is zoned Art Deco Quarter, which is essentially a commercial CBD zone paying tribute to Napier's two to three main streets, which are almost entirely comprised of Art Deco buildings.
Napier's Municipal Theatre is two doors down from the property for sale, with a two-storied council carpark separating the two. The Clive Square Reserve is across the road.
Three blocks to the east is Napier's waterfront and Marine Parade, while 200m to the west is Carlyle St, a busy strip on Napier's commercial fringe.
"The location is relatively low profile, but extremely close to all of the city's services — and arguably, it couldn't be more fitting for a dental practice or similar business," Walker says.
Tenant Lumino The Dentists is signed to a three-year lease earning $22,273 in net annual rent.
The lease expires at the end of June 2020, followed by two rights of renewal of three years each.
Lumino was founded in 2002 when Abano Healthcare purchased Geddes Dental's portfolio of 12 Auckland dental practices. The Lumino The Dentists brand was established three years later.
The company has acquired more practices at the rate of eight-to-10 per year. It passed the 100-practice milestone in May 2016 and continues to grow at its established rate.
