A stand-alone retail and office block, fully leased to seven national and local tenants, is for sale on the fast-growing Kapiti Coast north of Wellington.
The property, at 16 Raumati Rd, is known as the East Block of Raumati Beach Shopping Village. It is being marketed by Dean Anderson of Colliers International's Kapiti office and is for sale by tender closing at 1pm on March 14.
Anderson says the 1088sq m two-level building, on the corner of Margaret and Raumati Rds, provides a passive investment with diversified income.
"This property has a great set of features which should appeal to investors. The diverse spread of tenants provides a split-risk income stream, while the corner location means the property has a really high profile in this busy locality."
With a rateable value of $2.87 million, the property sits in a price range that is accessible to a wide range of investors, says Anderson. "We're expecting a lot of interest from individual investors, family trusts and syndicates, as it's rare to find a Mixed-Use commercial property with such a good mix of tenants in a prime location and in this sort of price range."
The East Block is the newest of the two blocks that make up Raumati Beach Shopping Village. It was constructed in the mid 1990s and refurbished, upgraded and strengthened to 69 per cent of new building standard three years ago.
The building's five ground floor retail units are leased to Raumati Four Square, The Frock Shop, Kapiti Sushi, Raumati Veterinary Clinic and D4 Restaurant and Bar. Healthcare NZ (the country's largest provider of community-based health, rehabilitation and disability support services) leases most of the upstairs office space, alongside Certa Engineers which occupies one office.
All the tenants are well-established at the property, says Anderson. "Most of the tenants have been here a long time and enjoy their location in this busy village centre, which is well used by locals as a convenient meeting and shopping spot."
The seven tenancies generate total net passing income of $224,364 a year, with rent reviews providing the potential for future income growth.
The building occupies an 814sq m freehold site in the heart of the Raumati Beach commercial centre, which services the local population as well as day-trippers from Wellington who often visit the shops cafes and boutiques.
The Kapiti Coast is a high-growth location with several major commercial and infrastructure projects underway which are expected to benefit property owners and occupiers up and down the coast.
"Development is well underway on the Kapiti Landing Business Park just to the north of Raumati Beach. Several large-format retail stores are already open and the development is expected to create thousands of jobs," says Anderson.
Roading projects including the new Wellington to Levin Northern Corridor Road of National Significance and the Kapiti Expressway (Mackays Crossing to Peka Peka) are improving transport connections in the region, which will be given a further boost on completion of the Transmission Gully highway.
The Kapiti Coast economy grew by 3.8 per cent over the year to September 2017, compared with 2.1 per cent growth for the Wellington region and 2.5 per cent nationally, according to Infometrics.