The two fully leased floors, each on a separate freehold unit title, form part of a recently renovated and strengthened mixed-use building on Tennyson Street.
Positioned amid the city’s biggest concentration of Art Deco buildings, the multistorey former office block at 70 Tennyson Street was considered a utilitarian eyesore until it was given high-quality makeover by the Wallace Development Company.
The first floor houses a purpose-built skin clinic operated by national-brand anchor tenant Caci Napier, along with offices leased to renewable energy business Ecoefficient Solutions NZ. Celebrated local florist Bloom Bouquets occupies a high-profile ground floor retail space fronting Tennyson Street.
With a weighted average lease term (WALT) of almost nine years, the three tenancies of a combined 289 square metres generate total net rental income of $98,935 plus outgoings and GST per annum.
Units G01 and 101 at 70 Tennyson Street, Napier South, are now being marketed for sale, together or separately, by way of an auction on Friday 3 December, through Bayleys Napier.
Salesperson Mark Evans said the offering comprised the first-floor and ground-floor freehold unit titles of the Tennyson Street building, whose makeover had transformed it into one of the city’s top commercial addresses.
“Built in the 1960s, this building was for years vilified for detracting from the beauty and character of the art deco gems around it.
“Wallace Development Company lived up to its national reputation by transforming this dated office block into a modern and contemporary space with a mix of commercial and residential accommodation.
“The structure was seismically strengthened to 100 percent of new building standard, while the developers have cleverly used the structural reinforcing design to deliver a building with attractive visual features that now complement and enhance the Art Deco surroundings,” said Mr Evans.
The property provides modern apartment and penthouse living on the upper floors with high-quality office accommodation and clinic treatment rooms on the first floor and boutique retail space at ground level.
Established in 1994, anchor tenant Caci has 60-plus stores from Kerikeri to Invercargill. Caci Clinic Napier’s first-floor skin health clinic spans some 155 square metres with six treatment rooms. The tenancy has profile to Tennyson Street and comes with one garage car park. Caci pays net annual rent of $51,974 plus outgoings and GST. Its current lease has some 13 years to run, expiring in 2034, with built-in annual CPI rent reviews.
Ecoefficient, which since 2016 has completed hundreds of solar installs for homes and commercial premises, occupies 87 square metres of trendy, modern office space at the rear of the first floor, with three outside car parks. With a lease extending to 2023, its tenancy generates annual net rental income of $25,318 plus outgoings and GST, with annual rent reviews to CPI plus 1 percent.
Blooms Bouquets, a modern florist famed for its artistic bouquets, occupies a ground-floor retail space of some 55 square metres with high windows and stunning street appeal and profile to busy Tennyson Street. The business pays net annual rent of $21,642 plus outgoings and GST, on a lease that runs through to 2028, with a further eight-year right of renewal and built-in annual CPI rent reviews.
The Tennyson Street property sits within Napier City Council’s Art Deco Quarter (Commercial Environment) zone, providing for retailing and offices intermingled with some residential activity.
“This is one of regional New Zealand’s most vibrant and visually appealing precincts, with one of the highest concentrations of Art Deco buildings to be found anywhere – along with some of Napier’s most popular cafes, restaurants and shops plus established law firms and tech companies,” Mr Evans said.
Multi-level parking is available nearby, along with public transport choices, and the location is a short distance from Marine Parade.
Mr Evans said he expected the building to gain the attention of investors from well beyond Hawke’s Bay.
“With three diversified, established tenants and a long WALT, the two units for sale will appeal to buyers anywhere seeking a quality bottom-drawer investment. The ability to buy either one, or both, makes this a flexible opportunity that could suit a new commercial property investor or a seasoned buyer adding to their portfolio,” he said.