A Kapiti Coast investment exercise to weigh up
A corner property in Paraparaumu’s Te Roto Drive - which runs from Kapiti Road towards the beach residential areas to the north – is up for tender with Bayleys with the anchor tenant, Configure Express, just two years into a personally-guaranteed 10 year lease.
Stephen Lange of Bayleys Wellington is handling the sale of 34 Te Roto Drive where woman’s gym Configure Express occupies one and half units within the three-unit complex.
“This is a very popular and well-utilised gym that reinforces Configure Express’s franchise philosophy to occupy sites in major traffic areas for convenience and easy access,” says Mr Lange.
“The lease on the 492sq m tenancy runs through until June 2017 with a further two, five year rights of renewal able to be exercised.”
The property which fronts onto both Te Roto Drive and Sheffield Street recently underwent a makeover with a new facade added to the buildings to transform them from their original design purpose as industrial-type workshops into more attractive bulk retail/showroom office tenancies.
“This is in line with a trend for commercial properties in this area to lean more towards the destination retail showroom functions as evidenced by neighbouring businesses such as The Tile Warehouse, Furniture To Go, MasterTrade and the Unisys Computer Centre,” says Mr Lange.
Raumati Glass leases part of a unit tucked in behind the gym while a third unit – 340sq m of space – is currently vacant and suitable for an owner-operator or a bulk retail tenant to feed off the clientele already attracted to the area.
The current net rental is $132,000 per annum with the potential to boost this by a further $42,000 should a new tenant be found for the vacant unit.
“There are definitely still investors in the market but they are quite particular about what they are after. Location will always be a key factor but a good long-term lease is often the clincher; this property has both those elements plus the added bonus of either owner/occupier space or the opportunity to source a new tenant for the vacant unit and boost the income streams,” says Mr Lange.
Tenders close on 2 December.
