One of the largest multi-tenanted commercial blocks on the northern outskirts of Hamilton has been placed on the market for sale.
The property at 593 Te Rapa Road consists of a 1,543 square metre dual-storey unit titled premises sitting on freehold industrial zoned land occupied by a range of retail and commercial entities - including three nationally-known brands.
Combined, the eight tenancies within rectangular-shaped building at 593 Te Rapa Road generate an annual net rental of $308,000 plus GST. The tenancy schedule includes is headlined by Resene Paints occupying 727 square metres of space on a lease running through to 2025 with two further six-year rights of renewal, paying annual net rental of $151,500 plus GST.
Fellow nationally-branded café lunch bar Robert Harris Café occupying a 189 square metres of space on a lease running through until 2024, with a further eight-year right of renewal, paying annual net rental of $50,000 plus GST.
Travel agency Hello World also occupies 96.7 square metres of space on a lease running through until 2025, with two further two-year rights of renewal, paying annual net rental of $36,000 plus GST.
Further toward the back of the building, mobile retailing firm Ace Marketing Extreme occupies 128 square metres of space on a lease running through until 2020, with one further six-year right of renewal, paying annual net rental of $26,600 plus GST.
Meanwhile, retailing support company Plumbing Plus BKL occupies three offices on a lease running through until 2022, with two further two-year rights of renewal, paying annual gross rental of $20,340 plus utilities.
Also in the premises, financial management business Enprise Solutions occupies 50 square metres of space on a pending three-year lease paying $18,000 plus GST and utilities, while infrastructure engineering firm NZ Civil occupies two offices on a lease running through until 2021, paying annual gross rental of $12,000 plus utilities.
Rounding out the tenancy list relocation services provider Hamilton Movers occupying an office on a lease running through until 2021, with two further two-year rights of renewal, paying annual gross rental of $8,000 plus GST.
The site also has car parking for 46 staff and customer vehicles, and was extensively refurbished to its current A-grade standards in 2006.
The land and buildings at 593 Te Rapa Road are now being marketed for sale at auction on December 5 through Bayleys Hamilton. The property features in Bayleys' latest Total Property portfolio magazine. Bayleys Hamilton salespeople Alex ten Hove and Mike Swanson said there was considerable rental upside within the property – with some 120 square metres of office space currently vacant.
"The split-risk tenancy make up of the building, combined with the vacant space, means the property could appeal to both investors or owner-occupier buyers looking for office premises in what is predominantly a light industrial and retail part of Hamilton," Mr Swanson said.
"Facing directly onto Te Rapa Road, lead tenant Resene ColourShop and its neighbour Robert Harris Café jointly sit at the base of the Italian style corner tower – and along with Hello World enjoy a prominent position overlooking a main arterial route which has some 30,000 vehicles passing itheir doors every week day," he added.
"Their position at the front of the property complements the neighbouring tenancies within the block which have office-based commercial-focuses to their operations and don't need the high public profile.
"Parking for all of the rear tenancies comes off an access right-of-way running along the side of the premises and leading to the rear of the building."
The Te Rapa location for sale is surrounded by such big-box retailing outlets as Bunnings, PB Tech', Guthrie Bowron, Target Furniture, and the new Inland Revenue Department offices.