Big Whangarei building with top tenants
A view of 113 Bank St, one of central Whangarei’s biggest commercial buildings.
One of the biggest freehold commercial buildings in central Whangarei – leased to some of the city’s leading corporate entities – has been placed on the market for sale.
Featured in Bayleys’ latest Total Property magazine, the building at 113 Bank St is being marketed for auction on October 28 by Ross Blomfield of Bayleys Whangarei.
“This prominent site on the corner of Bank St, Hunt St and Vinery Lane is among a small selection of large commercial office blocks in Whangarei which are fully tenanted,” Blomfield says.
The 1781 square metre two-storey building overlooks one of the busiest roundabout intersections in Whangarei and occupies a 2072 sq m site.
“The five tenants within the property generate a combined annual rental income of $324,942,” Blomfield says.
- Communicorp Holdings Ltd –Spark Digital - which has a lease running through to 2024 with three further three-year rights of renewal, paying rent of $115,210 per annum. CHL Spark Digital occupies 610 sq m of first floor office space along with 14 allocated car parks.
- Chartered accountancy practice Syers Hamilton Pool - on a newly signed lease expiring in 2018 with one further three-year right of renewal that earns $93,830 per annum. Syers Hamilton Pool occupies 472 sq m of space and has eight allocated car parking spaces.
- Chartered accountancy practice Gunson McLean – with a lease expiring in 2017 that has two further three-year rights of renewal and generating $61,868 per annum. Gunson McLean occupies 291 sq m of space and has five allocated car parking spaces.
- Electricity lines maintenance company Northpower Fibre – which pays annual rent of $39,034 on a lease expiring in 2017. Northpower occupies 198 sq m of space and has six allocated car parking spaces.
- Cloud computing firm Advance Data Centres has 65 sq m of space on the ground floor, leased until 2022 with two further five-year rights of renewal and pays rent of $15,000 per annum.
Blomfield says the Bank St premises has one of the strongest tenancy schedules of any commercial site in Whangarei – both in quality of tenants, and the length of the leases.
“Syers Hamilton Pool has operated from here since 1995; Northpower Fibre is one of the region’s leading infrastructure servicing and maintenance providers; and CHLSpark Digital is Whangarei’s largest IT provider – so the building houses an impressive collection of tenants,” he says
Blomfield says the building’s triple road frontage location meant natural light was accessible to all offices at some stage throughout the day. Access to the building was split across three separate entrances – one off Bank St, one off Vinery Lane and one from the expansive car park at the rear of the premises.
Originally constructed in the 1990s as offices for a legal firm, the building has an 80 per cent rating of New Building Standards and is classified with an A-grade interior fit-out which includes sound-proofed walls and strengthened floors under the data centre floor plate. Building amenities include air conditioning, separate amenities, fire system, passenger lift and security system.
The property is built on reinforced concrete foundations, with the first floor consisting of reinforced concrete over pre-cast floor panels. The exterior walls feature pre-cast concrete block and concrete reinforced timber around structural steel frames. The roof is made of long-run galvanised steel.
“With two IT-reliant tenants, the building has its own back-up generators and high voltage transfomers to ensure a continual electricity supply in the event of mains power falling over. That’s a bonus for the other tenants if their power ever cuts out,” Blomfield says.
“These back-up systems are situated in a secure area of the car park, so they don’t interrupt the internal flow of the building’s commercial spaces.”
Tenants in the building pay varying percentages of the operating expenses – roughly equating to $34.11 per square metre. Blomfield says the building has been well maintained – both internally and externally - throughout its life.
“The façade and interior décor of this premises would certainly normally be associated with a much newer building. The ongoing maintenance schedule, combined with the central city location and ease of both vehicular and pedestrian access, are the main reasons the tenancy schedule has been at capacity for virtually the whole life of the premises,” says Blomfield.
Ross Blomfield, of Bayleys Whangarei.