Luxury yard on 'Car Alley' in Hastings

BMW has traded at 824 Karamu Rd North for two decades. Photo / Supplied

BMW's luxury vehicle site along the Hastings' Car Alley on Karamu Rd North, and a smaller separate leased building next door, are for sale as one parcel.

The joint listing gives potential buyers flexibility with multiple options including a long-term passive investment or owner-occupier potential, said Bayleys Hastings salespeople Rolls Vavasour and Daniel Moffitt.

The luxury car dealership has been on the same leased site at 824 Karamu Rd North for the past two decades in premises that have been steadily upgraded and enhanced to meet the exacting standards of BMW NZ and its parent company in Germany.

Next door, there is a short term lease on 820-822 Karamu Rd North, a much smaller property on a separate title, which could easily be on-sold by a new owner.

The property, for sale by private treaty closing on May 16, features in Bayleys' latest Total Property portfolio magazine.

The prominent corner site was leased by Jeff Gray BMW for much of its history. Following a change of ownership its 2-1/2 year lease to BMW Manawatu and Hawke's Bay generates net rent of $140,000 a year. Its rating valuation is $1.6m. The smaller property has a rating valuation of $500,000.

Previously occupied by a pharmaceutical company the three-year lease started in 2017 and earns $50,000 a year.

The site comprises a 345sq m building that has a single-level office, showroom, cool rooms and warehouse on a 915sq m site.

On the main site, BMW sells and services cars from a 710sq m building split into showroom and offices of 286sq m garage, workshop and parts office of 253sq m, grooming and maintenance shed of 140sq m and a tyre bay of 29sq m on a 2121sq m site. In addition, there is a forecourt car display yard of about 1300sq m.

Vavasour points out the property is close to the Mega Park Centre, where two of Hastings' biggest big box properties were snapped up recently by out-of-town buyers.

"Karamu Rd is renowned as the Car Alley of Hastings, with other major brands including Holden, Toyota, Mitsubishi and Kia. A vacant commercial property on the busy arterial was a rarity."