The land and building housing a diverse range of well-patronised retail and commercial tenants – ranging from a busy fast food outlet through to an accountancy firm – has been placed on the market for sale.
The commercial block at Thames Street in the Waikato township of Morrinsville encompasses a range of tenants whose services are used by a broad cross section of the town’s population virtually every day of the week.
The 610 square metre building sits on 551-square metres of land in the heart of Morrinsville – just a hundred metres away from the main arterial route of State Highway 26.
The Morrinsville location encompasses four retail and commercial tenancies – generating a combined annual income of $73,041,000 per annum. Among the individual tenancies are:
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· Well-established accountancy practice Diprose Miller on a lease running through to 2022 with two further three-year right of renewal, generating rental of $20,209 per annum
· Business services consultancy firm Fuel Rebates Ltd, currently on a lease expiring later this year with two further three-year rights of renewal, generating rental of $22,000 per annum
· Fast food outlet JJs Burgers, on a lease currently running through to 2023, generating rental of $16,848 per annum
· Café eatery Fresh Fuel Ltd, on a newly signed lease running through to 2022, with three further two-year rights of renewal, generating rental of $13,984 per annum
and
· A currently vacant office space.
The freehold land and building at 294 Thames Street is now being marketed for sale at auction on June 3 by Bayleys Hamilton. Salesperson Josh Smith said the property had considerable rental upside from tenanting the currently vacant office area.
“The currently vacant open-plan space with its own staff amenities would suit a professional services firm looking for premises in Morrinsville’s central business district, and could be expected to return a per square metre rate comparable to the other commercial tenancy on the floor,” he said.
“That would take the property’s total income to somewhere in the region of $95,000.”
All tenancies within 294 Thames Street have rear access to their premises, as well as off-street parking - from a service lane running behind the building. Access to the first-storey commercial offices is via a stairwell at the back of the building leading to a large deck area.
“The broad nature of the tenancies within the property – all who operate in non-competing sectors of the economy - ensures a wholly split-risk investment opportunity,” Smith said.
“Alternatively, the property could also suit an owner-occupier looking to relocate their business into the currently empty modern office suite which is in a ‘turn key’ state ready for immediate occupation.”
As Morrinsville’s main shopping destination, Thames Street is home to a vast array of charity shops, clothing outlets, banks, real estate agencies, hospitality and food and beverage operations which all benefit from high volumes of foot traffic and free vehicle parking along the strip. Adding to the road’s purely commercial appeal, the route is dotted with concrete planter boxes to enhance its pedestrian attractiveness.
Constructed in 1950 with reinforced concrete frames and plastered concrete block walls, the building at 294 Thames Street has a new building standards rating of 33 percent. Smith said the building had been recently refurbished to a high standard to meet the demands of its commercial tenants, with the retail sites also benefitting as a direct result.
The building’s three street-fronting tenancies are among the most instantly-recognisable in Morrinsville – overlooking one of the town’s collection of brightly painted cow statues which pay homage to the area’s dairying production heritage.
JJ’s burgers has an alcove-style service window onto the pavement – allowing for customers to wait outside while their food is prepared. Meanwhile, Diprose Miller’s frontage is clad in schist stone, and Fresh Fuel’s high street presence is enhanced by table seating on the pavement – with a large sliding door leading to the café’s welcoming interior.
