The 960.5 square metre freehold specialist medical centre at 25 Park Street on the northern outskirts of Tauranga's CBD, generates a net yearly income of $420,000 plus GST from two associated medical clinics which offer comprehensive ophthalmology services.
On the ground floor, Park Street Eye Clinic occupies consulting rooms, while the Park Street Day Stay Theatre on the first floor has the surgery suite and day stay facilities.
Both long-established tenants have leases with rights of renewal until 2038 and each has exercised their second right of renewal early in anticipation of the property's sale.
The property is marketed for sale by Bayleys Tauranga salespeople Brendon, Lynn and Ryan Bradley in a tender process closing October 24.
Brendon Bradley says the city living-mixed used zoned property will appeal to buyers who want an outstanding, hands-off long term hold with security of tenure from two eye specialist tenants. “The property is a solid income earner with impressive cashflow.”
The premises encompasses are a purpose built two-level medical clinic with an A-grade seismic rating.
Developed in 1997, the property's ground floor has multiple eye clinic consulting offices, two laser rooms, two large waiting areas, reception/administration area and staff facilities. The first floor has a day stay theatre, which includes two operating theatres, two sluice rooms, duty station, several recovery rooms, office, kitchenette and reception/waiting area.
The predominantly flat rectangular site has extensively landscaped grounds that include gardens, hedges and mature trees plus 34 sealed and marked car parks.
Construction includes concrete foundations and floor, particle board intermediate floor, solid plaster cladding fixed directly over plywood and concrete blocks, aluminum exterior and timber internal joinery and a Kliplok metal roof.
The premises have an average stud height of 2.8 metres and about three metres in the theatres. Landlord improvements include air-conditioning, an emergency generator, lift and security system.
Ryan Bradley says both tenants signed original 10 year leases in 2004, with two six-year rights of renewal and rent reviews initially every two years.
“These leases have since been varied to provide two further six-year rights of renewal with rent reviews every three years from 2020. The April 2020 lease renewals have been exercised and the landlord and tenants have also agreed to the April 2020 rent reviews remaining at the existing rent. The next lease renewals are in 2026 and 2032, with the leases finally expiring in 2038 if all rights of renewal are exercised,” he says.
The property is situated in a sought after position on the northern side of Park Street. “This area is a popular city fringe locality about one kilometre from the CBD and shopping area,” Lynn Bradley says.
Park Street provides convenient non-metered on-street car parking on a restricted duration basis.
“The main characteristics of the area include a mix of professional office premises and residential developments. Major properties close by include the Armitage Hotel, courthouse, police station and the domain.
“Astute investors will most certainly recognise the strong attributes of this prime northern city fringe location in what has become a strong commercial services sector within close to inner-city services and main roads,” Lynn Bradley adds.
Tauranga is the fifth most populous urban area of New Zealand with a 2016 population estimate of 128,000 that is projected to be upwards of 150,000 by 2023, with many more residents requiring medical and professional services.
Along with Auckland and Hamilton it forms the golden triangle, which generates about 50 percent of the nation's GDP.