Government tenant underpins value in Naenae building
A Crown-tenanted commercial property in the Lower Hutt suburb of Naenae has been placed on the market for sale, as its Kapiti Coastbased private investor owners wish to release capital for a new undertaking.
The Ministry of Social Development (MSD) has occupied the building at 2 Vogel Street, near its intersection with main arterial Cambridge Terrace, since 2005, and last year renewed its lease for a further nine years.
The property returns a gross income of $170,820 plus GST per annum.
Johnny Curtis of Bayleys Wellington Commercial, is marketing the property for auction, to take place at 11am Thursday March 18 at Bayleys’ Wellington CBD offices.
Curtis said that MSD operates a Community Link client service centre from the premises – understood to be among the busiest of its Wellington region branches
“It’s a very functional base for MSD in Naenae and is wellpositioned to community.”
MSD had showed further commitment to the site by undertaking a significant upgrade and refurbishment to the building in late-2019, said Curtis.
The 936sqm single-level building has a largely open plan layout with some breakout offices, good storage and staff/client amenities. It has an assessed seismic rating of 68-percent new building standard.
Zoned General Business, the land is 1459sqm, and the property has dual access with car parking at the front and rear.
Curtis said with the MSD tenancy in place, the property represents a sought-after “bottom drawer”, passive investment in a suburb that is undergoing a resurgence.
“The Hutt City Council recently approved its community plan to reinvigorate Naenae’s town centre.
“The Naenae Town Centre Spatial Plan has guidelines overlaying future development within the suburb and aims to ensure that the needs of the community serve the growing
are better served.
Curtis said the MSD-occupied building may be of interest to an investor/developer from a longterm hold perspective given the generic nature of the building itself,
and the pivotal site it is on.
“Beyond its existing lease commitment, there is tangible value in the building and the site,” he said.
“Centrally-located land will hold its value in a suburb like Naenae
which is evolving on the back of a constrained residential housing market and the emergence of higher-density residential accommodation models.”