Investment scene turnaround
Opportunities range from gym to early childcare centre. By Gill Davis.
Famine has morphed into feast within Hamilton’s investment property market, according to NAI Harcourts agent Brad Chibnall.
‘‘For the past few years, many investors have resisted the option of having bank deposits in favour of retaining brick and mortar, which produced a regular cash flow,’’ he said.
Investment properties have been few and far between in recent times but in a somewhat surprising turnaround, NAI Harcourts now has a window of opportunity for investors seeking the security of commercial property.
‘‘We’re currently marketing four different investment properties within Hamilton city and surrounds.’’
A brand-new, purpose-built early childhood education centre at 70 Hare Puke Drive, Flagstaff North, is part of a larger retail neighbourhood development.
‘‘Traditionally, ECEs have been tightly held by their owners so it is a somewhat rare opportunity to see this property offered to the market.’’
A new long-term, 12-year lease is held by an operator with over 20 years’ experience in the industry. The centre has been approved by the Ministry of Education for a licence for 80 children.
The overall development would bring much-needed commercial amenity to a wide residential catchment, and with six new schools recently opened or due to be opened, the area was the fastestgrowing residential area in Hamilton, Chibnall said.
A modern gymnasium and office complex on about 1880 square metres of freehold site in Te Rapa, is also for sale.
Built in 2013 to new building code, the property at 62 Church Rd maintains the appearance of a new construction.
It provides 40 covered and uncovered carparks for occupiers and their clients, and the main tenant has invested heavily in an appropriate fit-out.
The property is a stone’s throw from The Base, and Ember Restaurant is directly to the rear.
Two properties sited within the heart of Hamilton’s CBD have also been placed on the market.
A United Kingdom-based owner was looking to divest 298 Barton St and had already signed the reserve at 9 per cent, Chibnall said.
National tenants are Kilt Clothing, Smith Sports Shoes and Lawson Williams Consulting Group, and the property is returning $109,225pa plus GST, and outgoings from the two retail tenancies and a first-floor office tenancy.
The building, with excellent fitouts in place, is located on a premium site on the corner of Barton St and Racquet Lane, just along from the new ASB Building that is under construction.
NAI Harcourts is also marketing 36 Bryce St within the CBD. Its present ownership is a partnership and the owners were asking for all offers be presented, Chibnall said.
The A-grade seismic-assessed building has been recently modernised and is fully leased.
‘‘It is returning $304,690 a year plus GST, and outgoings – there certainly appears to be some future rental growth potential.’’
Situated on the northern side of Bryce St between Victoria and Barton streets, with a land area of approximately 1035sqm, the property spreads over two freehold titles.
It has on-site parking, more than 27m of street frontage and national tenants: The Co-operative Bank, Astra Bridal, T&T Childrenswear and Absolute IT.
"It is a somewhat rare opportunity to see this property offered to the market." Brad Chibnall of NAI Harcourts