The imposing central-Invercargill building housing one of the city’s oldest legal firms and the Southland offices of the three Government departments has been placed on the market for sale.
The recently renovated 2520 square metre two-storey commercial premises on 1858 square metres of land at 45 Yarrow Street is regarded as one of Invercargill’s best commercial premises.
The primary tenant in the building is Preston Russel Law – which has been operating in Southland for 155 years. The company acts as the province’s Crown Solicitors.
Taking the entire upper floor, Preston Russell Law has a lease running through until 2022 with four additional four-year rights of renewal. The tenancy generates revenue of $221,136 per annum.
Meanwhile, the secondary tenancy primarily consists of the Inland Revenue Department which has occupied the ground floor of the premises for the past 15 years, and has a current lease running through to later this year, with two further three-year rights of renewal. The naming-rights tenancy generates a rental of $186,684 per annum.
Extensive renovations of its floor space currently being undertaken by the IRD include the installation of a new access and security system, new interior décor and fit-out, and an upgrade of the closed circuit TV camera electronics and office security layout.
The IRD has sub-leased some of its space to fellow Government agencies including Internal Affairs and the Ministry of Innovation and Development.
The Yarrow Street building is being marketed for sale by Bayleys Southland - with offers being taken up until March 17. Bayleys Southland salesperson Hayden McCallum said the building was constructed in the late 1990s and had been meticulously maintained over its life span.
“Preston Russell Law undertook a major first floor renovation in 2013, while a new air conditioning system was installed in 2014 at a cost of $120,000.
“Likewise, the IRD and its sister Government agencies on the ground floor have maintained the standard of their interior throughout their tenancy. This reflects not only the professionalism of their services, but also meets the Government edict that all state offices must be housed in earthquake-resilient premises,” Mr McCullum said.
The building is located on the northern fringe of Invercargill CBD in the city’s large retail precinct adjacent to stores such as Farmers, Rebel Sports and Briscoes, in a part of town zoned ‘Business Sub Area’ which allows for a mix of retail and commercial activities. Mr. McCullum said the building had 20 onsite car parks.
“With around 100 employees working inside the building, both tenancies have their own individual staff amenities – including bathroom and kitchen facilities,” he said.
“The property exceeds 100 percent of New Build Standards under the Initial Evaluation Process (IEP) assessment method. Buildings with ratings higher than 66 percent are generally considered ‘safe’,” he said.
“From an investment perspective on multiple fronts, there are few buildings like 45 Yarrow Street in Invercargill which have quality tenants in place in such modern and well maintained premises.
The property has a 2014 rating valuation of $3.6million. Mr McCallum said Bayleys had already received interest from potential buyers in Canterbury, Tauranga, Auckland and Southland.