Long-term Mt Wellington tenant
AMt Wellington freehold property encompassing two commercial office buildings and a cafe, with established anchor tenants on long-term leases and 129 onsite car parks, is on the market.
Known as the Greens Building and the Lakes Building, the premises on two separate titles at 6 Harrison Rd, are for sale by tender closing at 4pm on March 28, through John Binning and Ian Hall of JLL.
“The tenants are the New Zealand Chiropractic Education Trust Board, Quench Collective (formally Sacred Hill Wines); and Spark, which has a transmission aerial on the roof earning $11,235pa,” says Binning.
The total net lettable area of the two office buildings and cafe is 4791sq m occupying a land area of 8654sq m.
NZ Chiropractic pays $1,150,355pa on an eight-year-lease, commencing January 1, 2016 with one eight-year right of renewal taking the final expiry date to December 31, 2031, if exercised.
“The leased areas include the Lakes premises, Garden premises, Lower Lakes Premises, the caf, Area D in the Lakes Building and 111 car parks,” Binning says. “NZ Chiropractic uses the various leased areas in the buildings as a teaching facility, health centre, caf and for office administration services.”
The lease to NZ Chiropractic incorporates rent reviews every second anniversary of the commencement date – including each renewal – and provides for increases equating to 5 per cent of the annual rent payable immediately prior to the relevant review days.
“Operating expenses are low by market standards at $75 per sq m to $93 per sq m,” Binning says.
Quench Collective has a six year lease commencing October 1, 2013 generating $142,069pa and with three two-year rights of renewal giving a final expiry of September 31, 2025.
Binning says the Greens Building on Lot 1 with area of 2310sq m — made up of first and ground floors of about 1155sq m each — was purpose-built for the NZ Chiropractic Education Trust Board around 2007. It has underground car parking, a ground level entry foyer, atrium and central services area.
Hall says the Lakes Building of about
2262sq m, on Lot 2, was constructed around 1988 and comprises a first floor of
1000sq m, ground floor of 937sq m and part lower level recreational zone of 325sq m. The 109sq m cafe with 30sq m deck was built around 2011.
“The building was extensively refurbished to provide modern accommodation in 2015 with renewal and modernisation of the building faade and interior. The result is that the building now presents in good condition both externally and internally,” he says.
“The basic construction is similar to the Greens Building with concrete foundations, reinforced concrete column and beam frame; aluminium frame curtain walls with tinted glazing and long-run iron roofing.
The ground floor has been subdivided into two tenancies with Quench Collective occupying the southern portion; and the NZ Chiropractic Education Trust Board occupying the remainder of the building.
The ground floor and Level 1 are occupied by NZ Chiropractic and are partitioned into offices, meeting rooms and training rooms. “The fit out is owned by the tenant with the premises leased on a bare shell basis,” says Hall.
The lower level of the Lakes Building, with toilet amenities, is also occupied by NZ Chiropractic and is used as a students’ lounge and gym.