One of the biggest commercial properties in the heart of the Waikato township of Putaruru has been placed on the market for sale.
The land and buildings housing Hammer Hardware store at 38 – 42 Princes Street is a 944 square metre building sitting on 1204 square metres of commercially-zoned freehold land in the middle of town.
As sole tenant on the site, Hammer Hardware is currently on a three-year lease expiring in 2020 generating a rental return of $60,000 plus GST per annum, with three-yearly rent reviews, and five further three-year rights-of-renewal.
Hammer Hardware has been operating in New Zealand since the late 1980s and now has more than 50 stores nationwide. The Kiwi-owned and operated franchise chain supplies both the building and landscaping trade, and DIY shoppers.
Now the freehold land and buildings are being jointly marketed for sale at auction on April 12 through Bayleys Hamilton. Salespeople Mike Swanson and Alex ten Hove said the Princes Street premises was constructed in 1966 and was upgraded and extended in 2007. The older part of the premises has a New Building Standards rating of 70 percent, while the newer extension has a 100 percent New Building Standards rating.
“The internal high-stud open plan configuration of this property, combined with its location in the heart of Putaruru township is perfect for the Hammer Hardware business, whose commercial operations will be retained by the existing owners and will remain on site,” Mr Swanson said.
“The building has 54 metres of prominent street frontage sustaining ample parking immediately outside, with a 27 square metre canopy over the front door, and 254 square metres of mezzanine administration office room, staff amenities such as lunchroom and toilets, as well as a substantial storage area.
“The rear of the property is accessed by a service lane which allows for hassle-free product collection from the loading bay, as customers – particularly ‘tradies’ - don’t have to park on the street while they are loading their purchases.
“This convenience is particularly important for the large volume of trailers, vans, utes, and small tonnage vehicles which are transacting with Hammer Hardware on a daily basis.”
Mr ten Hove said the no-frills premises was constructed from steel framed portals with iron supports, concrete and cladding walls, and corrugated roofing, in a style reflective of many bulk retail outlets New Zealand rural service towns.
“While in the cities, many of the ‘big box’ operators in this building supplies and garden equipment sector have moved to suburban locations where the per square metre costs are lower, as a small rural supply town Putaruru has managed to retain Hammer Hardware’s presence in its CBD,” Mr ten Hove said.
“As you would expect from the nature of a building supplies outlet in rural heartland New Zealand, the premises at 38 – 42 Princes Street is a sturdy, no-nonsense location.
“The ample availability of parking in the main street, little traffic congestion, and the satisfaction of being able to park once and do all of your building supply shopping from one pivotal point, are all elements which enable towns like Putaruru to retain their rural character and appeal,” Mr ten Hove added.
“Princes Street is the building supply and DIY retail hub for Putaruru - with neighbouring commercial tenancies in the strip including Bunnings Warehouse. Princes Street runs parallel to and one block back from Taupo Street, State Highway 1, which is the main arterial route through the town.
“The convenience of access factor is amplified by Princess Street looping at either end back onto the main road. It is also a wider-than-average road – which allows for easy trailer reversing, again, another customer-benefit factor why those New Zealand’s building supply and DIY retailers have chosen to operate from this location.”
As a rural services town, Putaruru is located relatively equi-distant between the cities of Hamilton, Tauranga and Rotorua. It is generally regarded as the ‘smaller brother’ of nearby Tirau - which has transformed itself from a similar rural services township to now being a coffee-stop/antiques and collectibles destination for motorists driving between Auckland and Rotorua, and Auckland and Taupo.
Balancing that out, Putaruru’s building supply and DIY retail hub in Princes Street has a client catchment area which embraces private and trade customers north to Tirau, and south to Tokoroa.