Pharmacy-anchored keystone site

A keystone dual-tenanted commercial building, anchored by a popular local pharmacy, has gone up for sale in a busy Napier suburban shopping centre.

The standout two-level corner property on arterial Kennedy Road sits in the heart of Marewa’s retail hub, which is typified by high footfall and traffic flows, and low commercial vacancy.

Just minutes from Napier’s city centre, the site is home to two established tenants, Marewa Pharmacy on the ground floor, and respected adult education provider Achievement NZ on level one.

The well-presented property with dual frontages to Kennedy Road and Douglas McLean Avenue generates a total net rental return of $101,400 plus outgoings and GST per annum.

The pharmacy occupies high-profile corner premises of some 190 square metres, which previously served as an ANZ bank branch. The lease runs through to 2028, with three further five-year rights of renewal, if fully exercised, extending to 2043.

An upstairs tenancy spanning some 356 square metres, with separate secure access, is occupied by Achievement NZ on a lease that runs to 2027 with three further two-year rights of renewal.

Market rent reviews are provided for – every two years for the pharmacy, and upon each renewal for Achievement NZ.

A smaller vacant ground-floor tenancy of some 110 square metres offers add-value investors a chance to boost income and add longer-term resilience by installing a third tenant.

“This flexibility makes the property attractive to both passive investors and those seeking to actively enhance value and equity over time,” said Bayleys salesperson Kerry Geange.

“Underpinned by a strong health-sector anchor tenant and a complementary adult education occupier, this is superbly located investment which offers new owners the security and diversification of multiple income streams,” he said.

The freehold land and buildings at 106 Kennedy Road, Marewa, Napier, are being marketed for sale by Kerry Geange and Charlie Geange of Bayleys Hawke’s Bay.

The property is being offered to buyers by way of a deadline sale closing on Thursday 2 April.

The building has a total floor area, including common areas, of approximately 710 square metres. This is underpinned by some 356 square metres of land.

The building was seismically strengthened in 2014 to 80 percent of new building standard. It enjoys excellent visibility and exposure thanks to around 35 metres of high-profile dual street frontage.

“The longstanding desirability of this property and location is evidenced by previous occupation of the main ground and first-floor tenancies by ANZ and a long-established accountancy practice – since vacated due to rationalisation of the bank’s branch network, and the accountants’ successful business outgrowing the premises,” Kerry Geange said.

“Today’s pharmacy anchor tenant has a particularly loyal customer base, enhanced by the nearby presence of a newly refurbished healthcare centre. This lease provides stability and resilience based on ongoing demand for essential health services in an ageing population,” he said.

The vacant third tenancy, accessed from Douglas McLean Avenue, will be particularly attractive to tenants in medical or related fields due to its position between Marewa Pharmacy and the neighbouring Central Medical practice with its longstanding community customer base. The vacant tenancy shares amenities with the pharmacy but has full standalone security.

The Kennedy Road property sits within the Local Centre zone under Napier’s district plan, amid a dynamic mix of health and professional services, amenities and retail.

Charlie Geange said this location, supported by abundant public parking and bus services along Kennedy Road, was one of the property’s most compelling credentials.

“It’s for very good reason that vacancy rates for tenanted properties in the Marewa shopping centre are perennially low. Served by one of Napier’s most important arterial roads, businesses here reap the benefits of excellent exposure and accessibility.

“The site for sale benefits from consistent local patronage and a well-established suburban catchment. Proximity to the city centre further strengthens tenant and customer demand,” Charlie Geange said.