Split-risk investment in bustling Cambridge
The land and buildings of a multitenanted commercial offering that occupies a prominent position in Cambridge are available for purchase.
2 Oliver St is home to four separate income streams on a
4051sq m site that has 2024sq m of total net lettable area.
With nationally recognised tenants in place, including Guthrie Bowron and Hunting & Fishing New Zealand, this is an outstanding splitrisk investment opportunity in a tightly held commercial location.
Some of the tenancy agreements run into the next decade or beyond if all rights of renewal are exhausted.
The total net annual rental income from the property is $374,642 plus GST and outgoings.
With 50m of exposure to Oliver St, the property sits among high-profile neighbours such as Mitre 10 Mega, Repco, Mico and Farm Source.
There are further retail and hospitality offerings on Victoria, Empire and Duke streets, which are only a short drive away.
The Waikato Expressway, which offers access north and southbound, is easily reached.
Colliers Hamilton brokers David Palmer and Justin Oliver are marketing the property for sale via deadline private treaty closing at 3pm, Thursday February 22, unless sold prior.
Hunting & Fishing occupies a modern 550sq m building and has a
10-year lease that began in November 2021.
It has two further rights of renewal for five years each. There is also a market rent review due in November
2025.
Guthrie Bowron is located in a refurbished 400sq m building that is visible from the road.
Its five-year lease began in 2021 and there is one further right of renewal for five years. Market rent reviews are scheduled for every two years from 2025 through to 2029.
The gym tenancy occupies
706sq m of floorspace on a 10-year term that began in April 2023.
It has two further rights of renewal for five years. There is also a scheduled rental increase in April
2025 and a market review due in April 2027.
Strive Performing Arts Studio leases 80sq m of space at the property and its tenancy runs until September 2026.
Guthrie Bowron and the gym tenancy also lease additional floorspace on short-term agreements that run until 2026.
Palmer, senior sales and leasing broker at Colliers Hamilton, says the tenancy mixture will be appealing for prospective purchasers at a property that offers convenient street access and car parking for customers and suppliers.
Many of these lease agreements have attractive terms that will generate future rental growth for the new owner, Palmer says.
The opportunity to secure a splitrisk investment with long-term occupants is rarely seen in Cambridge and the strong tenant covenant provides a major selling point.
Oliver, senior sales and leasing broker at Colliers Hamilton, says the growth of Cambridge has added to continued demand for commercial and retail services.
According to data from Infometrics, Cambridge’s population grew 2.9 per cent between 2015 and 2022, outpacing the national growth rate of 1.5 per cent, Oliver says.
Cambridge’s local GDP has grown steadily during the past decade as more businesses have recognised the opportunities on offer, while there is also a strong sporting community with the national rowing and cycling bases in the area.
The property offers buyers the chance to secure a highly visible asset in a busy commercial hub.