One of the biggest commercial properties in the Waikato township of Putaruru has been placed on the market.
The land and buildings housing Hammer Hardware store, at 38-42 Princes St, comprises a 944sq m building on a 1204sq m, commercially-zoned, freehold site in the middle of town.
As sole tenant on the site, Hammer Hardware is on a three-year lease expiring in 2020 generating annual rent of $60,000 net, with three-yearly rent reviews, and five further three-year rights-of-renewal.
Hammer Hardware has been operating in New Zealand since the late 1980s and now has more than 50 stores nationwide. The Kiwi-owned and operated franchise chain supplies both the building and landscaping trade, and DIY shoppers.
Now the freehold land and buildings are being marketed for sale, at auction on April 12, through Mike Swanson and Alex ten Hove of Bayleys Hamilton and feature in the agency's latest Total Property portfolio magazine.
Swanson says the Princes St premises was constructed in 1966 and upgraded and extended in 2007. The older part of the premises has a New Building Standard (NBS) rating of 70 per cent, while the newer extension has a 100 per cent NBS rating.
"The internal high-stud open plan configuration of this property, combined with its location in the heart of Putaruru township is perfect for the Hammer Hardware business, and the commercial operation will be retained by the owners who will remain on site," Swanson says.
"The building has 54 metres of prominent street frontage with parking immediately outside and a 27 square metre canopy over the front door. Inside there is 254 square metres of mezzanine administration office space, staff amenities like lunchroom and toilets, as well as a substantial storage area.
"The rear of the property is accessed by a service lane which allows for hassle-free product collection from the loading bay, as customers — particularly 'tradies' — don't have to park on the street while they are loading their purchases.
"This convenience is particularly important for the large volume of trailers, vans, utes, and small tonnage vehicles which are transacting with Hammer Hardware on a daily basis."
Ten Hove says the no-frills premises was constructed from steel framed portals with iron supports, concrete and cladding walls, and corrugated roofing, in a style reflective of many bulk retail outlets New Zealand rural service towns.
"While in the cities, many of the 'big box' operators in this building supplies and garden equipment sector have moved to suburban locations where the per square metre costs are lower, Putaruru, as a small rural supply town, has managed to retain Hammer Hardware's presence in its CBD," he says.
"As would be expected from the nature of a building supplies outlet in rural heartland New Zealand, the premises at 38-42 Princes St is a sturdy, no-nonsense location.
"The availability of parking in the main street, little traffic congestion, and the satisfaction of being able to park once and undertake all the building supply shopping from one pivotal point, are all elements which enable towns like Putaruru to retain their rural character and appeal," ten Hove says.
"Princes St is the building supply and DIY retail hub for Putaruru — with neighbouring commercial tenancies in the strip including Bunnings Warehouse. Princes St runs parallel to and one block back from Taupo St, State Highway 1, which is the main arterial route through the town.
"The convenience of access factor is amplified by Princes St looping at either end back onto the main road. It is also a wider-than-average road, allowing for easy trailer reversing; again another customer-benefit factor and another reason why the 'big three' of New Zealand building supply and DIY retailers have chosen to operate from this location."
As a rural services town, Putaruru is roughly equidistant from the cities of Hamilton, Tauranga and Rotorua.
"It is generally regarded as the 'smaller brother' of nearby Tirau — which has transformed itself from a similar rural services township to now being a coffee-stop/antiques and collectibles destination for motorists driving between Auckland and Rotorua, and Auckland and Taupo," says ten Hove.
"Balancing that out, Putaruru's building supply and DIY retail hub in Princes St has a client catchment area which embraces private and trade customers north to Tirau, and south to Tokoroa."