Marketing agent Mark Evans says the sale of the underlying ‘land units’ at 44 Taradale Road, Marewa is likely to attract cashed-up passive investors looking for a property investment requiring minimal management.
The sale will be by way of Deadline Private Treaty on Friday 11th March, 4pm at 52 Bridge Street, Ahuriri, Napier.
Each of the freehold in stratum ‘land’ titles has a registered 21-year perpetually renewable lease to a group of seven owners of 22 individual ‘apartment’ titles.
They generate a combined passing income of $102,300 + GST, with each lease subject to seven yearly reviews to 5% of the land value.
“This is a structure that can benefit both the freehold owner and leasehold investors. The freehold investor can reliably forecast their return on investment, with the rental reviews linked to land values and the body corporate fees paid by the leaseholder,” Evans says.
A new purchaser will have the opportunity to sell the leasehold interest in any unit to the lessee of that unit, if the parties wish. The new owner could split any risk or release capital in the future either with the sale of one or several blocks.
Currently, one professional investor owns 16 of the 22 leases, simplifying management for a freehold purchaser.
“This is a less usual passive property offering, but popular with many investors because it allows a forecast return on investment, and there is the flexibility of various sell down opportunities in the future.”
The seven owners of the twenty-two stratum-in-leasehold in freehold unit titles pay a ‘ground Rent’ on the underlying freehold in stratum ‘land units’.
“Buyers can take confidence from the residential values throughout the Hawke’s Bay region that have risen strongly in recent years,” Evans says.
The 1960s-built apartment complex offers affordable and easily accessible accommodation located within a popular residential area. All within close walking distance to local shops and a short drive to the city of Napier. The site provides dual access, plentiful parking and a large central grassed common area.
Taradale Road is a mix of commercial and residential property which is close to Napier’s premier industrial area, Onekawa industrial estate.
The property is situated on a back section, off Taradale Road, with one-way access and exit from Veronica Avenue. The complex also offers off-street parking for each unit. There are arterial connections to the Hawke’s Bay Expressway, direct access to central Napier just 2kms away, a nearby shopping centre, and to Marewa and the Onekawa industrial area.
The zoning is residential, and within the popular Marewa residential area.
“The Hawke’s Bay economy remains strong and there is significant capital investment in public and private infrastructure throughout the region driving demand for commercial and residential property with increased population growth,” Evans says.
“Anybody looking for passive income needs to get in touch on this property.”
A body corporate is responsible for maintenance and insurance levies, whilst each apartment unit title separately pays Napier City and Hawke’s Bay regional council rates.