Mixed-use CBD building for sale

Mixed-use CBD building for sale marries diverse income with add-value options

36 Bryce Street

A high-profile Hamilton CBD building with diverse tenants including a bank, an escape room adventure hub and a leading bridal store has been placed on the market for sale.

The three-storey mixed-use property at 36 Bryce Street, Hamilton, sits at a prominent site near the Victoria Street intersection, and opposite the busy Centre Place Shopping Mall. The building is fully leased to eight office and retail tenants, led by anchor tenant the Co-operative Bank, in a precinct which is home to a number of leading banking brands including ANZ, SBS and the regional headquarters of ASB.

Other occupants of the Bryce Street building include Astra Bridal and the Escapist immersive adventure space, which features four themed escape room games, along with an international-chain Chinese restaurant, an engineering consultancy, an office co-working space and a hospitality training organisation.

The property generates total net rental income of approximately $288,000 plus outgoings and GST per annum.

The freehold land and buildings at 36 Bryce Street, Hamilton, are now being marketed for sale by auction on 3 December (if not sold prior) through Bayleys Hamilton and Bayleys North Shore.

Salespeople Rebecca Bruce, Matt Mimmack and Michael Nees said the property consisted of a building of approximately 1,913 square metres on some 1,035 square metres of land with 13 car parks.

“Constructed in 1969, this retail/office building is well presented, having undergone significant upgrades in recent years including an external facelift to modernise the asset. The building has a Grade A seismic rating of 82 percent of new building standard,” Bruce said.

“With bathrooms and kitchenettes on each floor, and onsite secure car parking offering a mix of open and covered options, the property is currently configured to accommodate eight tenants in a variety of spaces,” she said.

Tenancy details include:

• The Co-operative Bank occupies a ground-level retail space of some 236 square metres, paying gross annual rent of $61,692 plus GST. Its current lease runs through to 2021, with a further three-year right of renewal.

• Some 278 square metres is leased to Astra Bridal, generating gross rental income of $46,560 plus GST per annum, on a lease extending to 2025, with two further four-year rights of renewal.

• CJ Bro Limited, trading as Dagu Rice Noodle, occupies approximately 245 square metres on a lease running through to 2023, with two further three-year rights of renewal. It pays net rent of $48,819 plus outgoings and GST per annum.

• National engineering and environmental consultancy Pattle Delamore pays net annual rent of $24,996 plus outgoings and GST for its offices of approximately 103 square metres. The current lease runs through to 2021, with three further two-year rights of renewal.

• Private hospitality training provider The Training Bureau Ltd occupies around 128 square metres, paying gross annual rent of $15,396 plus GST. Its current lease extends through to 2022, with a further four-year right of renewal.

• Some 923 square metres is leased to the Spindrift Trust & New North 81 Ltd on three leases generating combined gross rental income of $125,148 plus GST per annum. It sub-leases two spaces to office co-working provider Nau Mai and escape room operator Escapist Entertainment Limited. All three leases extend through to 2022.

Mimmack said the diversity of tenants and leases would present a new owner with multiple options.

“For an investor, this property offers relatively high returns from multiple diversified income streams. A more hands-on purchaser could look to uplift the rent roll with immediate options including converting gross leases to net leases with all tenants covering property expenses,” Mimmack said.

“With a range of lease expiries and spaces, options also exist for an owner-occupier to take up part of the space and expand into the building over time with additional income via existing tenancies.

“The property’s zoning also offers the potential to investigate redevelopment options including the addition of high-yielding residential apartments to the future mix,” Mimmack said.

The site’s “Downtown Precinct, Central City” zoning under Hamilton City Council’s district plan, anticipates that this area will provide for the bulk of the region’s commercial growth over the next 30 years. The zoning encourages the development of taller buildings to achieve commercial growth and higher residential densities in the precinct.

Nees said the property’s prime CBD location would be a key advantage for new owners. Its profile to Bryce Street, with frontage towards the popular Centre Place Shopping Mall, gave the building exposure to an estimated 15,000 passing vehicles daily, he said.

“Situated near the Claudelands Bridge, within easy reach of arterial routes, the site for sale is easily accessible from surrounding suburbs. It’s a three-minute walk to the Hamilton Transport Centre, the city’s main public transport hub at the corner of Bryce and Anglesea streets.

“With amenities galore in the area, tenants’ staff enjoy being located in this property. Just across the road is the Centre Place Dining Lane, along with the many shops and services in the mall. There are a number of gyms within walking distance and the river paths are just a short stroll away,” Nees said.

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