A commercial office complex with one of Rotorua’s most diverse tenancy mixes has been placed on the market for sale.
Trinity House at 1268 Haupapa Street in Rotorua’s central business district features five different commercial tenants within its walls.
The two storey 877 square metre building is fully occupied to deliver a combined rent roll of $170,164 plus GST, with the tenancy scheduled spread across:
Engineering and surveying firm Stratum Consultants Ltd which has a current lease through until 2019 with two further three-year rights of renewal, generating rental of $53,393 + GST per annum
Property valuers Cleghorn Gillespie Jensen Ltd which has a current lease through until 2019 with two further four-year rights of renewal generating rental of $44,305 + GST per annum
Holding company Kuirau Properties Limited which has a current lease through until 2019 with two further three-year rights of renewal, generating rental of $43,356 + GST per annum and is subleasing its floorspace to four sub-tenants
Office supplies company Sharp Corporation which has a current lease through until 2018 with two further two-year rights of renewal, generating rental of $16,560 + GST per annum
Millennium Architecture Ltd which has a rolling lease generating rental of $12,550 + GST per annum.
The Haupapa Street building is being marketed for sale at auction on September 15 by Bayleys Rotorua salespeople Mark Slade and Brei Gudsell. The property has a New Building Standard rating of 83 percent and comes with up to 11 staff and client car parks immediately outside the front of the building.
The two storey structure – originally constructed in 1974 and extensively remodeled and refurbished in 2006 with a new roof and façade installed – has a 2014 Rotorua City Council rating valuation of $1.72million.
Ms Gudsell said the multiple tenancy configuration of Trinity House, combined with the physical quality of the building, meant it was an attractive investment option.
“Throughout its life, Trinity House has been subject to a comprehensive annual maintenance schedule – encompassing both the physical aspects of the property and its services infrastructure including the lift, air conditioning units, and security system,” Ms Gudsell said.
“For investors, there is a sound leasing schedule in place - with the opportunity to either negotiate a longer-term presence with one of the smaller tenancies, or bring in a new tenant on a higher per square metre rate to raise the overall yield should space become available in due course.
“With a convenient city-fringe location providing easy access for both staff within the building, and customers visiting the tenancies within, Trinity House is located in one of Rotorua’s most established commercial precincts which has seen minimal vacancy rates in comparable-sized and aged premises over the past six years.
“What we have seen is tenants in older buildings dating back to the 1950s and ‘60s moving to more modern premises. This has never been an issue with Trinity House.”
The property is built of concrete block walls with timber framing. The ground floor has concrete footings, while upper level floor is also concrete slab on blockwork and columns. The roof is long-run corrugated steel and part membrane roofing on timber rafters and main beams.
The five tenancies within Trinity House share a communal entrance foyer - which provides access to not only the ground floor offices but also the lift and stairwell to the upper level premises. There are common-shared staff kitchen and bathroom facilities located on each level.
Mr Slade said the multi-occupancy configuration of the building had been specifically designed to accommodate small businesses.
“Small to medium-sized businesses employing less than 12 staff are by far the biggest percentage of non-Governmental corporate entities in Rotorua - and right from the outset Trinity House has been tenanted by firms in this sector,” Mr Slade said.
“That shared split-risk tenancy model has worked well for the building and its owners for the past 10 years, and there is little to suggest any change in that paradigm in the near future.”