Prime Hamilton CBD and now up for auction

The Anglesea Street complex is on a large site with more than 40 car parks. Photo / Supplied

A two-storey, 900 square metre refurbished and fully-tenanted office building at 401 Anglesea St in the heart of the Hamilton CBD, is being marketed for sale for the first time by CB Richard Ellis in Hamilton. "This property will be auctioned at 11 am on May 25 at CB Richard Ellis's offices on the corner of Forest Lake Rd and Te Rapa Rd," says Mike Neale director of commercial property for CBRE Hamilton, who is marketing the property with colleague Kara Gerrand.

The office complex is situated on a large freehold 1930 sq m site zoned Commercial Service and has more than 40 on site car parks.

"Returning in excess of $183,000 per annum plus GST net, we anticipate this investment property will be a welcomed by investors seeking better deposit rates than offered by banks and a volatile share market," Neale says.

Four tenants provide a spread of risk, without significant management:CopierWorld NZ Limited, which retails and supports brands like Oki, Kyocera and Toshiba. The firm relocated to the Anglesea building from Victoria St, to provide customer parking, easy delivery access and acquire additional space. Edtech Limited, an established company resourcing educational technology, with a staff of 90 and a customer base of over 1000 schools. The firm also relocated to Anglesea St having outgrown its Hardley Street premises. Paterson Burn Optometrists, a company that has been Waikato owned and operated since 1925.Zoagn Limited, a project development and management company which develops its own initiatives, or offers the vehicle to have projects delivered to new companies or companies launching new initiatives.

"With more than 40 on-site car parks and fully refurbished office space, this was a desirable property for tenants seeking long term leases, quality offices and plentiful car parks," Gerrand says. "There's a car park to every 23 square metres of office space; only a handful of properties in the CBD offer anywhere near the car parking ratio."

A major attraction of the property is the size of the site. "A freehold site of 1930 square metres in the heart of the CBD offers significant future capital growth potential. It is a stone's throw from both Casabella Lane and Kiwi Income Property Trust's Centre Place Mall. Tenants say being close to cafes, eateries and retail outlets attracts staff and clients."

It's a five-minute walk from Seddon Park cricket ground, and the V8 circuit and exceeds minimum seismic requirements.

"Investors are taking advantage of near historically low borrowing rates, an indication that we are starting to come out of the recession," Neale says. "Taking into account gearing, this property could potentially provide an astute investor with positive cash flow and a healthy annual return."

Other properties for sale in the Hamilton CBD currently being marketed by CB Richard Ellis include a well presented and maintained character office building on the corner of Liverpool St and Hardley St. "This comprises over 300 square metres of office space on 744 square metres of land with 14 on-site car parks and must be viewed for its charm to be appreciated," Gerrand says.

A third property with two street frontages - a two level retail-office building at 646 Victoria St and 19 London St, in the Hamilton CBD - is subject to a mortgagee sale.

"It is across the road from the new $7 million Quest serviced apartment development," Neale says. "With over 2000 square metres of land in the sought-after Central Core Zoning and encompassing over 2300 square metres of building, this property has two well known tenants paying a total of $150,000 rent per annum.