A fully leased character investment property is for sale on the main shopping strip of Herne Bay.
Colliers International investment sales brokers Kris Ongley and Ned Gow are marketing the 271sq m freehold property at 212 Jervois Rd which goes under the auctioneer's hammer at 11am on Wednesday November 28, unless sold, unless it sells earlier.
Ongley says the sale represents an opportunity to acquire a split-risk investment property in a popular retail block.
"Within a highly sought-after, low-vacancy area, it comprises a two-level character building, constructed in the early 1900s, with a single-level retail extension later added.
"It's leased to a popular local cafe and hairdresserpaying combined annual rent of $79,559.16 net plus GST.
"The rectangular freehold site is zoned Business Local Centre, allowing development of up to 13m. Permitted activities include residential, retail, office and food and beverage. About half the site to the rear is undeveloped."
Gow says the property sits on top of the Herne Bay ridge.
"Its north-facing frontage to Jervois Rd and has all day sun; while the rear has shared access via Wanganui Ave. "The land at the rear is now a garden and car park but it could be redeveloped with appropriate resource consents. This could allow a developer to plan a higher-density use for the 271sq m site while maintaining the character of the original building."
The property has a net lettable area of about 221sq m, split between two ground floor retail tenancies and a first-floor office or residential space. Both retail tenancies share a canopy to the Jervois Rd frontage.
The original two-storey structure is of brick masonry construction with wooden features and floors. The ground floor comprises a cafe and commercial kitchen, while the first floor is used as the cafe's office and storage area.
The 173.95sq m building is fully tenanted by Bacio Cafe and Catering.
Bacio is signed to a four-year lease returning $57,253 plus GST in net annual rent, with one further right of renewal of four years. The next inflation-indexed rentreview is due in January 2020.
The retail addition at 212A Jervois Rd sits between the original building and an adjoining brick retail building. The 47.05sq m tenancy includes a deck and rear storage area.
Inpsirations Hairdresser is signed to a five-year lease earning $22,305.96 in net annual rent, with a single right of renewal for a further five years. The next market rent review is due in July 2020.