The sale of a standout Paraparaumu commercial investment property anchored by multiple longstanding big-brand tenants is expected to generate significant national buyer interest.
Positioned with expansive frontage to key arterial Kapiti Road, the more than one-hectare site’s multiple buildings house 12 diverse tenants including a Resene ColorShop, Plumbing World showroom, NZ Post facility and BNT Automotive parts store.
The freehold property generates a total net rental return of $713,500 plus outgoings and GST per annum.
“This is an outstanding investment property of scale, well positioned, and with genuine upside potential through rent growth,” said Bayleys salesperson Mark Sherlock.
“The buildings are all seismically compliant and maintained to a high standard. With established high-calibre tenants, this property has been a proven performer over many years which offers diversified income streams for investors,” Sherlock said.
The freehold land and buildings at 112 and 118 Kapiti Road, Paraparaumu, are being marketed for sale by Sherlock and colleague Grant Young of Bayleys Wellington Commercial and Industrial.
The property will be sold by way of a tender closing on Wednesday 25 October.
The site for sale is located midway along Kapiti Road, the Kapiti district’s main thoroughfare.
“Accessibility, both locally and across the Wellington region and lower North Island, is a key feature,’ said Sherlock.
“The State Highway 1 MacKays to Peka Peka Expressway passes just to the east of the property with an interchange around 300 metres away giving access on and off Kapiti Road.
“Paraparaumu town centre, home to Coastlands Shopping Centre and other major retailers, is around five minutes’ drive away, and Kapiti Airport is a kilometre to the west,” he said.
Young said the approximately 10,631-square-metre site contained over 6,000 square metres of buildings.
“More than 90 metres of frontage to Kapiti Road assures the property and tenant businesses of prominent exposure to more than 20,000 passing vehicles daily,” Young said.
112 Kapiti Road encompasses a large warehouse/showroom building at the front. The front portion of this contains some 1,390 square metres of showroom accommodation split between Resene Paints, which has been in occupation for over 20 years, along with motoring parts specialist BNT Automotive and regional gym chain 24/7 Fitness. Nationwide trade chain Plumbing World and three other tenants occupy the rear part of the building.
A second building at 112 Kapiti Road is part two-storey and part high-stud, single-storey accommodation. Its tenants include NZ Post, a bakery and an automotive service centre, while a vacant first-floor office area of over 130 square metres offers a new owner the chance to add value by installing a new tenant.
The front building at 118 Kapiti Road, along with a rear yard area, has been entirely occupied by Plumbing World since 2005. The front part of this building contains an approximately 240-square-metre showroom, with more than 500 square metres of warehousing and a mezzanine area of nearly 200 square metres behind.
At the rear of 118 Kapiti Road is a two-level building with first-floor offices and a ground-floor warehouse area. This building is head leased to Ballinger Industries with a sublease to the Toy Library.
Young said the property for sale was zoned General Industrial under the Kapiti Coast District Plan.
“This zoning will be key attraction for buyers in the current market given the scarcity of industrial land in this major growth town for the region.
“The Kapiti Road site is surrounded by numerous commercial showrooms and light industrial premises. The desirability of the area is evidenced by the site’s top quality tenants as well as neighbouring businesses including BP and Z service stations, New World and Mitre 10 Mega,” Young said.