Commercial office and retail block with sitting MP as a tenant goes up for sale
The land and buildings housing a range of retail and commercial tenants – including a sitting member of parliament who uses the location as one of his constituency offices – have been placed on the market for sale.
The commercial block at 186 – 190 Thames Street in the Waikato township of Morrinsville encompasses multiple ‘pillars’ of the community – from the local accountancy firm and a long-standing farm equipment and animal healthcare product retailer, through to the town’s MP.
The property comprises two buildings fronting onto Thames Street – with a large car park and farm machinery and equipment display area immediately adjacent to the retail premises.
The first of the two buildings was erected in the 1980s, while the second was constructed in the early 2000s. The Morrinsville locations encompasses four retail and commercial tenancies – generating a combined annual income of $110,349 per annum. Among the individual tenancies are:
• Farm products and equipment supplier
Geo. Hutchison & Co, currently on a lease expiring in 2021
with two further five-year rights of renewal, generating a
net rental of $70,132 per annum
• Chartered accountancy firm Cleland Hancox, currently on a lease expiring in 2021 with two further four-year rights of renewal, generating a net rental of $25,650 per annum
• The constituency offices of Waikato MP Tim Van de Molen, currently on a lease expiring in 2020, with two further three-year rights of renewal, generating a net rental of $8,866 per annum
• A currently vacant space whose previous tenant has been paying a token net rental of $5,701 per annum.
The freehold land and building at 186 - 190 Thames Street are now being marketed for sale at auction on October 25 by Bayleys Hamilton. Salesperson Josh Smith said the 1,157 square metres of buildings sat on 1,923 square metres of land in the heart of Morrinsville – just a hundred metres away from the main arterial route of State Highway 26.
Mr Smith said the property had considerable rental upside from tenanting the currently vacant office space - which had previously been occupied by another accounting firm which relocated to Hamilton last year.
“The large, open-plan space is laid out with several smaller managerial offices and a boardroom located around the central area, and would suit a professional services firm,” he said.
“While a token rental of $10,000 has been paid over the past year, comparable space in Morrinsville has been commanding a per square metre rate double that.
“The quality of the building is evidenced by the stature of the fellow tenants. Sitting National MP Tim Van de Molen has two offices in the Waikato, and regularly holds meetings and briefings with his constituents in these Morrinsville premises.”
Trading since 1942, Hutchies occupying the other building in the block provides a full range of dairy farm products – from milking machines and water pumping systems through to effluent control equipment and even private swimming and spa pool supplies. Hutchie’s floor plate comprises a mixture of open plan retail, office and warehousing space, while the rear of the premises contains a workshop with roller door access to the yard.
The building housing Tim Van de Molen’s constituency office and Cleland Hancox has an Initial Evaluation Procedure rating of 100 percent of new build standards. The building housing Hutchies has a much lower new build standards rating.
“There is considerable parking and storage space to the rear of the property – which is well utilised by staff from all three tenancies,” Mr Smith said.