Hamilton vet a stable tenant
Located at the corner of Mill St and Tristram St the vet practice is on the fringe of Hamilton CBD.
A two-storey commercial building for sale on a high profile corner position in central Hamilton has a long-term lease in place to the national Pet Doctors veterinary practice.
The 667sq m building located on a 1533sq m site on the corner of Mill St and Tristram St on the northern fringe of Hamilton's Central Business District is producing net annual rental income of $169,363.
It is being marketed by Mike Swanson and Jason Kong of Bayleys’ Hamilton office and is one of three Waikato properties featured in Bayleys’ latest Total Property portfolio, which will go up for auction on June 30 in Bayleys’ Hamilton auction rooms.
“This excellent investment property has attributes which will appeal to investors,” says Swanson. “There is huge exposure to a major intersection, opposite the Waikato Stadium, which is on the main arterial route from the central city to the western suburbs.
“It contains an A-grade earthquake-rated building, which is occupied by a long-established and very successful veterinary practice. It began operating from this site in 1996 and is now owned by the Pet Doctors, one of the country’s leading small animal veterinary practices that currently has 26 clinics around New Zealand, including another three in Hamilton.”
The premises at 384 Tristram St underwent a major 250sq m extension in 2005, which involved the addition of extra surgeries, offices and a boarding cattery. As part of that redevelopment, a further seven carparks with access off Mill St were created to complement the 12 with access from Tristram St and to provide improved customer parking on the site, says Swanson. “The property has a fully equipped pet hospital with extensive medical and surgical services available. It offers the latest diagnostic techniques such as ultrasound, endoscopy and in-house blood testing and also retails a wide range of health related pet products.
“The 5-star, two-storey cat motel provides high quality services and facilities, such as under-floor heating, and was established to diversify the business’ income stream.”
At the time of the building expansion, the practice entered into a long term lease and has recently notified its intention to exercise an eight-year right of renewal which takes effect in October. Kong says as part of this renewal process, the rent has been set at current market levels based on a registered rental valuation.
The lease has built in rental growth based on two-yearly CPI rental adjustments and there are two further three-year rights of renewal which if exercised would take the lease’s final expiry out to 2030.
Kong says the property’s Commercial Services zoning enables the establishment and operation of a wide range of moderate to low intensity commercial, community and service activities on the fringe of the central city area.
Hamilton’s commercial property sector has experienced an extremely active 12 months, Bayleys Research says in a recently released Market Beat report.