Built as the head office for commercial property investor Sir Bob Jones’ Waikato-based operations in the 1990s, and representative of the class of asset he championed, a significantly upgraded Hamilton CBD corner property with a lucrative long-term lease in place is for sale.
The two-level property at 526 Victoria Street, Hamilton occupies a high-profile 374sqm corner position at the intersection with Bryce Street, and has an assessed seismic rating of 105 percent of new building standard.
Zoned Downtown Precinct – Central City, the 954sqm building (net lettable 630sqm) has basement car parking for eight vehicles and is fully-leased by the innovative co-working operator The Crate, which provides stylish, and forward-thinking flexible workspace for entrepreneurs, freelancers and other businesses.
The Crate was founded in Auckland around 10 years ago, with a successful operation in Rosedale on the North Shore.
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Expanding into the Hamilton market on the back of strong demand for coworking space in the city, The Crate’s long-term lease of 12 years and 9 months commenced last November and returns net annual income of $208,341 plus GST.
The lease incorporates two further rights of renewal of six years each, with regular rental reviews to market.
Having recently undergone a high-end office refurbishment, the property is well-positioned to leverage the revitalisation being seen in the Hamilton CBD.
Purpose-designed for The Crate business model, the internal fitout provides an adaptable working environment with open-plan ergonomic coworking zones, some private offices, tech-enabled meeting rooms, quality amenities and barista coffee on site.
The property is being marketed by Bayleys Waikato commerical salespeople David Cashmore, Rebecca Bruce, and Jordan Metcalfe, and will be auctioned at 12pm, Thursday 10th August.
Cashmore says the high-calibre single lease over the property allows for ease of management for an owner and there is good appetite among investors for well-located, well-rented property.
“Income is driving the commercial property sector currently, and with a proven operator at the helm, this property offers sound fundamentals and is underpinned by the prime location on a busy CBD corner.
“Hamilton City Council recently reported there has been a 35 percent rise in commercial development over the past 12 months, with more than 40,000sqm of work happening across the city.
“The 23,000sqm Union Square mixed-use development is progressing well, and ACC has moved into its new regional offices, Amohia Ake, developed by Tainui Group Holdings.
“This is all good news for the city centre and supports the value of this pivotally-located Victoria Street property.”
As office workers return to the CBD after prolonged work-from-home dynamics, Bruce says the attractive workspace offered by The Crate provides a corporate environment with flexibility which is appealing to many small to medium sized businesses and self-employed operators.
“The building is a credit to its owners who have created an enviable commercial asset in arguably one of the best spots in town.
“The interior has overtones of a classy upmarket hotel which redefines office workspace, and the property has enduring appeal given the great visibility and profile to large volumes of passing vehicle and foot traffic.
“It’s close to the Centre Place shopping complex and transport connections which underscores the value of the site for those opting for flexible office space that reflects new ways and styles of working.”
- Article supplied by Bayleys
