The land and buildings housing a 49-unit self-storage facility in the lower North Island town of Marton are on the market, along with its business, JK Storage.
Trading consistently at a 95-100 per cent occupancy, the property, at 34 High St, is being offered for sale as a freehold going concern closing October 24 by Bayleys salespeople Russell Duggan of Whanganui and Brendon Bradley of Tauranga.
"The units, plus a office/showroom and caretaker's flat, provide a split-risk investment from three potential income streams," said Duggan.
The 1705sq m site on the corner of High and Bowen Sts was originally developed by agriculture business Hodder & Tolley to store grain seed and other agricultural products before redevelopment by JK Storage as a self-storage facility in 2017.
"JK Storage is a flexible, owner-operated business with day-to-day administration averaging about two to three hours a week.
"One of the major benefits of the storage business is that, unlike conventional commercial or industrial assets where rent can be reassessed only every two to three years, rental rates for storage units are continually reviewed according to supply and demand.
"Ranging in size from 7 to 40 cubic metres, the units are secure and robust with good ventilation and easy access.
"The business has an impressive annual net income with rental rates which are at realistic levels for private clients. JK Storage generates a continuous cashflow and strong returns from maximum local exposure and ongoing referrals, the bulk of which are from private households."
The property comprises two main buildings — a two-storey structure at the front, known locally as 'The Tui Building', which houses an office/showroom, amenities, ground, upper and mezzanine storage units with bulk roller door entry access from Bowen St, plus a business office and caretaker's flat.
The other building is at the rear of the property and comprises 23 storage units, while the balance of the site includes surplus land utilised as storage for motor vehicles and containers. The two buildings provide for a gross floor area of about 979sq m.
The current owner has committed to a new three-year lease for the office/showroom area with further rights of renewal when a new owner settles the property.
"In taking the lease the existing owner has also undertaken to renovate the front office," said Bradley. "However, if a buyer wants the front office for their own use, the owner is willing to sell it with vacant possession."
He says JK Storage presents an opportunity to further develop the site.
"Recent comparable sales include Whakatane's East Bay Secure Storage, a purpose-built, 106-unit facility on a 2113sq m site sold as a freehold going concern for $1.5 million at a 7.93 percent yield."