Trinity House which is for sale at 1268 Haupapa St, Rotorua.
Trinity House, a two-storey Rotorua CBD commercial office complex with a diverse tenancy mix, has been placed on the market for sale by auction.
The 877sq m building at 1268 Haupapa St is fully occupied by five different commercial tenancies and delivers a combined rent roll of $170,164 plus GST from:
1. Engineering and surveying firm Stratum Consultants Ltd, which has a lease through until 2019 with two further three-year rights of renewal, generating rental of $53,393 plus GST per annum.
2. Property valuers Cleghorn Gillespie Jensen Ltd, with a lease through until 2019 with two further four-year rights of renewal generating rental of $44,305 plus GST per annum.
3. Holding company Kuirau Properties Limited, on a lease through until 2019 with two further three-year rights of renewal, generating rental of $43,356 plus GST per annum and subleasing floor space to four sub-tenants.
4. Office supplies company Sharp Corporation, which has a lease through until 2018 with two further two-year rights of renewal, that generates rental of $16,560 plus GST per annum, and
5. Millennium Architecture Ltd which has a rolling lease generating rental of $12,550 plus GST per annum.
"This Haupapa Street building will go under the hammer on September 15," says Mark Slade of Bayleys Rotorua who is marketing the property, featured in Bayleys' latest Total Property magazine, with colleague Brei Gudsell.
The property has a New Building Standard rating of 83 per cent and comes with up to 11 staff and client car parks immediately outside its front entrance.
The two storey structure was constructed in 1974 and was extensively remodelled and refurbished in 2006 with a new roof and façade installed. It has a 2014 Rotorua City Council rating valuation of $1,720,000.
Gudsell says the multiple tenancy configuration of Trinity House, combined with the physical quality of the building, make it an attractive investment option.
"Throughout its life, Trinity House has been subject to a comprehensive annual maintenance schedule encompassing both the physical aspects of the property and its services infrastructure including the lift, air conditioning units, and security system," she says.
"For investors, there is a sound leasing schedule in place with the opportunity to either negotiate a longer-term presence with one of the smaller tenancies, or bring in a new tenant on a higher per square metre rate to raise the overall yield should space become available in due course.
"With a convenient city-fringe location providing easy access for both staff within the building, and customers visiting the tenancies within, Trinity House is located in one of Rotorua's most established commercial precincts which has seen minimal vacancy rates in comparable-sized and aged premises over the past six years.
"We have observed that tenants in older buildings dating back to the 1950s and 60s have been moving to more modern premises but this has never been an issue with Trinity House."
The property is built of concrete block walls with timber framing. The ground floor has concrete footings, while upper level floor is also concrete slab on blockwork and columns. The roof is long-run corrugated steel and part membrane roofing on timber rafters and main beams.
The five tenancies within Trinity House share a communal entrance foyer which provides access to the ground floor offices and a lift and stairwell to the upper level premises. There are common-shared staff kitchen and bathroom facilities located on each level.
Slade says the multi-occupancy configuration of the building had been specifically designed to accommodate small businesses.
"Small to medium-sized businesses employing less than 12 staff are by far the biggest percentage of non-Governmental corporate entities in Rotorua and right from the outset Trinity House has been tenanted by firms in this sector," he says.
"That shared split-risk tenancy model has worked well for the building and its owners for the past 10 years, and there is little to suggest any change in that paradigm in the near future."