Thames NZ Post building for sale
A building for sale in the core retail area of Thames lists New Zealand Post among its tenants.
JLL i s marketing the t wo- level L- shaped building at 517 Pollen St.
“With an area of 1078sq m, the reinforced concrete building dates back to 1937, occupying a 1521sq msite in the town centre,” says JLL agent Jason Armstrong.
“The building, which has a high profile locally, is for sale through an expression of interest campaign, closing on April 12.”
Armstrong says the ground floor of the freehold property is leased to NZ Post through to 2028.
The first floor accommodates five tenants, including an architecture firm and a management consultancy, while at the rear of the site there is a carport that forms part of the NZ Post tenancy.
“There are also t wo older- style masonry buildings on the site, but these are currently vacant.”
Armstrong describes the surrounding area as a mix of low- rise commercial buildings providing retail accommodation.
“The property is in a prime location and the tenancy with NZ Post accounts for around 75 per cent of the overall income, making 517 Pollen St a secure investment,” he says.
“It is returning $ 119,511 [ part gross] but there is potential to add value by increasing the rental income or by converting the existing space.
“With zoning rules for Thames town centre under the district plan being activity based rather than zone based, the potential for redevelopment is also worth exploring,” says Armstrong.
JLL National Research Manager Tom Barclay, says regional investment has grown in strength as we move through the property cycle. “While Auckland commercial property is frequently transacted at below 6 per cent yields, regional townships are providing much higher returns for investors,” says Barclay.
“Over the last three years, there has been a higher proportion of commercial and industrial sales occurring in the regions. Although there are risks in regional investment due to a smaller pool of potential occupiers, properties with long- lease terms to well- established tenants are highly sought after, particularly in townships with growing populations.”
Thames is the principle service town to the Coromandel district and is often referred to as the “gateway to the Coromandel Peninsula”. The township has a broad based economy, which includes the Toyota car complex, farming, fishing and tourism. A 5,733sq mindustrial property with a 2,661sq moffice and warehouse sold for $ 4.44m. The sale of 22 Ryan Pl, Manukau, was brokered by Jolyon Thomson, Ash Vincent and Gawan Bakshi of Colliers International and Janak Darji, Tony Chaudhary of Bayleys. A 2,703sq mindustrial property at 75 Aviation Ave, Mt Maunganui, has sold at auction for $ 2.06m, representing a yield of 5.3 per cent. The freehold property was marketed by Simon Clark and Rob Schoeser of Colliers International. A 2748sq moffice/ warehouse site sold for $ 4,050,000. The sale of 5 Greenmount Drive, East Tamaki, was brokered by Andrew Hooper, Dwayne Warby and Matt Prentice of Collier’s International. The site represented a yield of 6.04 per cent. A 782 sq m1960s commercial building on a 658sq msite at 133 Onehunga Mall, Onehunga has sold for $ 2,205,786 at a 5.6 per cent yield through Greg Hall and James Valintine, Bayleys Auckland and Tony Chaudhary, Bayleys South Auckland. It has four retail occupants and a church tenancy at the rear, on three- to five- year leases, plus 170sq mof vacant second floor office space. A 974.4sq moffice/ warehouse sold for $ 2,205,000. The sale of 4A Rothwell Ave, North Shore, was brokered by Matt Prentice, Jimmy O’Brien and Shoneet Chand. The site represented a yield of 5.47 per cent. A multi- tenanted 1,747sq m industrial property at 76 Koromiko St, Tauranga, has sold at auction for $ 2.16m, representing a yield of 5.8 per cent. The freehold property was marketed by Simon Clark and Rich Davidson of Colliers International. An 840sq mtwo- level retail/ office building with a B- grade seismic rating on an 844sq msite at 184 Cameron Rd, Tauranga, has sold for $ 2,100,000 at a 5 per cent yield through Brendon and Lynn Bradley, Bayleys Tauranga. There are eight tenants and 13 on- site car parking facilities at the rear.