Te Aroha medical hub offers healthy returns
The colonial-style healthcare hub in Te Aroha was constructed in 2001.
The land and buildings housing one of the biggest medical hubs in the Waikato have been placed on the market for sale.
The purpose-built “one-stop healthcare hub” at 28 Church St, in central Te Aroha, features a modern medical facility with five complementary healthcare providers split over two wings emanating out from a central reception area.
Tenants within the building include:
• The Te Aroha Medical Services private medical practice, which has a new six-year lease with two six-year rights of renewal generating an annual rental of $73,255.
• The Gogian dental practice – the only dentist in Te Aroha – which has a new three-year lease with two three-year rights of renewal generating an annual rental of $24,333.
• Unichem Pharmacy, which has a new six-year lease with two further six-year rights of renewal generating an annual rental of $20,000.
• Waikato District Health Board, which operates its mental and community health outpatient services from the site and has a lease expiring later this year generating an annual rental of $15,776.
• Blood testing company Pathlab, which has a new three-year lease and a further three-year right of renewal generating an annual rental of $15,050 and
• A 15sq m consulting suite booked on an hourly basis by visiting specialists from agencies such as ACC, Diabetes Clinic and Abfab Midwives — generating an annual return of $6471.
The 1063sq m of freehold land and 714sq m building is being marketed for sale at auction on July 14 through Bayleys Waikato and features in Bayleys’ latest Total Property portfolio.
Salesman Josh Smith points out that an additional 100sq m of vacant space within the building is ready to be let to an additional medically-focused tenancy.
“This could be along the lines of a physiotherapy studio, ear-nose-and-throat consultancy, aged care specialist practice, or orthopaedic clinic for example,” Smith says.
“Obviously any new tenancy would have an upside to the existing investment returns of the property, while the primary benefit for the tenant would be joining one of the biggest “all-in-one” healthcare centres in the Waikato.
“The vacant space comprises an office/reception area, three smaller-sized consulting suites, one larger consulting room and storage. The leasing returns for the space have been estimated to yield between $15,000-$20,000 per annum.”
A patient room within the Te Aroha medical hub at 28 Church St.
Smith said the colonial-style building at 28 Church St, Te Aroha, was constructed in 2001 and had been professionally maintained internally and externally.
“The reception area in the middle of the u-shaped premises is effectively a divider between the public and private spaces.
“A large waiting area for patients contains a play-pen for children and features direct entry to the pharmacy, the wheelchair-accessible toilets, and the private consulting rooms hired by visiting health professionals,” Smith says.
“Having the Unichem Pharmacy within the immediate proximity of the doctor’s surgery allows for patients to instantly access their prescriptions without having to leave the building. It’s an incredibly efficient process which delivers a high degree of customer service and satisfaction few other such medical practices can offer.”
Above the reception foyer is a mezzanine level containing the Gogian dental practice with its administration front-desk space, waiting foyer, and treatment studios with windows and skylights providing extensive light throughout.
The left side of the building houses Waikato District Health Board offices and meeting rooms, and the purpose-built Pathlab facilities, which have their own entry for private use by couriers who are delivering specimens.
The right wing of the property is used by the doctors and nurses working for Te Aroha Medical Services.
The 288sq m space contains a nurse’s station servicing three individual consulting rooms, an accident and emergency surgery and bathroom.
Smith said the open-plan accident and emergency area allowed direct access from the adjoining ambulance bay and was curtained off from the main facility to allow for patient privacy in times of distress.
“Due to the very specific and demanding nature of the tenancy-mix, hygiene, serviceability and durability have always been key components in the maintenance schedule of the building.
“For example, commercial-grade carpet and vinyl floor coverings were installed right from the outset,” he says.
The hub is on the CBD-fringe and neighbouring properties include a church, kindergarten and mechanical workshop.
The corner property has extended frontages over both Church St and Lawrence Ave – with parking on both roads directly in front of the centre.
Te Aroha has a population of almost 4000 and services a wider rural district as a retail and commercial centre with schools, banks and supermarkets.