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Restaurant premises opposite theatre complex takes centre stage for property investors

Tags: Commercial

The land and building housing two high-profile dining and drinking establishments – along with the headquarter offices for one of the Waikato’s biggest hospitality groups – have been placed on the market for sale.

The premises at 150 Victoria Street in the heart of the Hamilton’s premier hospitality ‘strip’ – and is home to upmarket grill restaurant Furnace Steakhouse and adjoining casual dining eatery Keystone.

Upstairs office space within the building is occupied by the Waikato’s biggest hospitality operations company, Lawrenson Group which owns and operates not only the two hospitality venues below, but also such other popular Hamilton establishments as House, The Bank Bar and Brasserie, The Outback, Coyote, and The Factory, along with Bar 101 in Auckland.

The 2,400 square metre building sitting on some 885-square metres of freehold land has now been placed on the market for sale by tender through Bayleys Hamilton, with the tender process closing on September 16. Salesperson Josh Smith said the central city premises was instantly recognisable – with its mirror glass wrap-around windows encircling the first-floor office space and a rustic river stone and timber façade stretching along at street level.

The trio of hospitality sector tenancies within 150 Victoria Street generates a combined annual income of $393,741 plus GS, and encompass:

• Furnace Restaurant on a current lease running through to 2025 with one further five-year right of renewal

• Keystone Restaurant also on a current lease running through to 2025 with one further five-year right of renewal

• Hospitality management firm The Lawrenson Group on a current lease running through to 2025 with two further three-year rights of renewal.

“The venue is in the heart of Hamilton’s eating and dining precinct running along Victoria Street and down into Hood Street. Keystone and Furnace restaurants both have prominent street frontages for pavement dining under an extended canopy – delivering not only a high profile but also a high degree of patron comfort.” Smith said.

“While both Victoria Street restaurants are owned and operated by the same company, they trade separately as stand-alone venues with individual kitchens, bars and bathroom facilities. Inside, both venues are fitted out to a high standard in a very modern decor – another reason why they have both been popular long-standing destinations in Hamilton’s often fickle hospitality sector.

“Upstairs, the property’s first-floor offices are accessed from Victoria Street via an internal stairwell which then leads onto an open plan office space – with separate smaller offices, meeting rooms and staff facilities wrapping around to form a modern, bright and vibrant workplace environment representative of the tenant.

“Underneath, the building’s secure basement area is accessed from Sapper Moore-Jones Place, and comprises 18 car parks and storage space for the various tenants. Internal access stairwells from the basement offer secure access to the multiple tenancies above.”

Constructed in the mid-1980s, the three-storey premises has new building standards rating to 72 percent and sits directly across the road from the land allocated for development of the $76million Waikato Regional Theatre arts and entertainment complex.

The Waikato Regional Theatre project has plans for a 1,300-seat auditorium suitable for hosting everything from pop concerts and ballet performances through to conference presentations as part of a complete regeneration of a 5,395-square metre site behind the old Hamilton Hotel with views over the Waikato River. Preparatory site work on the site is expected to start shortly.

“The development of the Waikato Regional Theatre complex located directly across the road from 150 Victoria Street underpins the long-term value of the property. Both Furnace and Keystone restaurants will undoubtedly benefit from increased patronage attending events and performances at the venue,” Smith said.

“There is also potential, subject to appropriate council consents under the commercial 8A zoning, to build additional levels on the site which could be suitable for a commercial accommodation provider.

” Another option could see a portion of the car parking space underneath the building let on a commercial basis to personnel involved with the theatre operation – thereby adding more revenue to the premises without adversely effecting its current dynamics.”

An independent engineering report on 150 Victoria Street describes the building as being “well maintained and in good condition” – built with concrete walls and foundations with a steel roof.

Click here for more information on the listing.

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