Café and office property portfolio on the menu for sale

Café and office property portfolio on the menu for sale in Wanaka

A portfolio of hospitality and office premises – including a high-profile café bar along with eight adjacent individual newly-built offices on the fringe of one of New Zealand’s new breed of master-planned residential suburbs – have been placed on the market for sale.

The enclave of commercial sites in the South Island township of Wanaka is known as Northlake Village Centre and was built in 2018 in parallel with a fast-emerging adjoining residential suburb of the same name.

Situated at 3 Northlake Drive at the intersection of Mount Linton Avenue, the property consists of some 1,282 square metres of fully tenanted commercial buildings sitting on 1,253 square metres of L-shaped freehold land. Also within the Northlake Village Centre, but not within the portfolio for sale, is the Pinnacles Early Childhood Education Centre and a public playground.

The eight tenanted units within Northlake Village Centre generate a combined annual gross rental of $288,848. One unit is currently vacant. The tenanted units encompass:
Licensed café and bar Monkey Farm on a current 10-year lease running through to 2028 with three further five-year rights of renewal
Home building firm Jennian Homes Southland on a current lease running through to 2022 with two further two-year rights of renewal
Property developer Winton Capital on a current lease running through to 2026 with three further three-year rights of renewal
Home automation and audio installation firm Custom Digital on a current lease running through to 2023 with a further one-year right of renewal
Property development feasibility analysis business McElrea Consulting on a current lease running through to 2022
Real estate agency Bayleys Wanaka on a current lease running through to 2024 with two further two-year rights of renewal
Construction Company Cook Brother Southern Lakes on a current lease running through to 2022 with one further two-year right of renewal
and
Holiday home rentals firm Release NZ on a current lease running through to 2023 with one further two-year right of renewal.

The commercial units with Northlake Village Centre’s commercial block range in size from 46 square metres up to 66 square metres and face directly onto Mount Linton Avenue. Combined, the eight units comprise 442 square metres of space – with tenancies split over the two levels, and the upper floors accessed by an external stairwell.

A central driveway runs through the property linking Northlake Drive with Glen Dene Crescent and allowing dual access points to the 38 shared car parking spaces within the block.

The Northlake Village Centre portfolio is now being jointly marketed for sale by deadline treaty through Bayleys Wanaka and Bayleys Queenstown, with negotiations closing on September 3. Salespeople Jimmy Allen and Mat Andrews said the broad tenancy schedule within the portfolio delivered a split-risk investment opportunity.

Allen said the portfolio would appeal to investors looking for a low-maintenance modern commercial property situated at the entrance way to Wanaka’s newest residential locale – set to grow to 1,600 residences when fully developed.

“The commercial footprint and space delivered through the Northlake Village Centre were much needed in Wanaka – catering to both small local enterprises and the Wanaka branches of several companies which have a greater national presence,” Allen said.

“As a consequence, the commercial leases within Northlake were quickly snapped up when the property was first brought to the market, and hence why it is currently fully tenanted now.

“Meanwhile, being away from the more visitor and tourist focused town centre, Monkey Farm is very much a ‘locals’ café which is well patronised by residents living in the surround residential area, in addition to serving mountain bikers and walkers accessing the surrounding countryside.

“The business also derives strong customer numbers from parents dropping off and picking up their young children from the nearby childcare centre.”

Andrews said that the landscaped grounds around the two Northlake Village Centre buildings ensured a high degree of both tenant and customer satisfaction – underpinning the quality of the buildings.
“Northlake Village Centre was, and still is, very much at the bow-wave of Wanaka’s commercial expansion away from the town centre,” Andrews said.
“The compact offices within the portfolio for sale are exactly what the local business market asked for and suit the small enterprise nature of Wanaka’s professional services sector. The availability of parking is also a big drawcard for both the tenant businesses and their clientele,” he said.

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