A multi-tenanted commercial building anchored by a Westpac bank branch is in the sights of add-value investors as the site goes up for sale in the heart of Tokoroa.
The two-storey property has commanding street presence, with profile to State Highway 1, in the key Waikato town’s central business district. Real estate marketers have tagged its location at the corner of Leith Place and Bridge Street as the best in town.
Long-term anchor tenants Westpac and Paterson Burn Optometrists have a long trading history in the building while an opportunity will present itself for a new tenant this year when the Waikato District Health Board/Te Whatu Ora vacates the more than 300-square-metre premises it has used as a vaccination hub.
Along with these three ground-floor tenancies, the largest premises of some 577 square metres on level one is currently occupied by a community martial arts club on a casual tenancy.
The Leith Place property currently generates a total net rental income of $118,220 plus outgoings and GST per annum.
It is seen as having hefty add-value investment potential thanks to its prime location, substantial future rental upside for the upstairs tenancy, and the opportunity to upgrade the building to meet the long-term expectations of national tenants.
Now on the market for the first time in 30 years, the property at 203-209 Leith Place, Tokoroa, is being offered for sale by Ryan Bradley and Brendon Bradley of Bayleys Tauranga.
Sale is by way of deadline private treaty closing on Thursday 10 August, unless the site is sold earlier.
The approximately 1,292-square-metre building sits on some 881 square metres of land on four adjoining freehold lots. The land is zoned Town Centre by South Waikato District Council.
Ryan Bradley said the original single-storey building was constructed in the 1950s, with subsequent additions and extensions over the years producing the substantial two-storey building seen today.
“The building is configured with three tenancies at street level plus a large first-floor premises wrapping around a high-profile corner with visibility to passing traffic on State Highway 1,” he said.
The site has dual frontage and pedestrian access from Leith Place and Bridge Street, and vehicle access to the rear via Leith Lane.
“This is a superb location to attract tenants in Tokoroa’s town centre. The multiple tenancies facilitate diversified income streams, while the potential rental upside and scope to maximise tenant appeal through building improvements provide a new owner with the chance to boost the future return on their investment.
“As such, the Leith Place property will suit add-value investors looking for a project with good holding income,” said Ryan Bradley.
Brendon Bradley said excellent street parking and the presence nearby of heavyweight traders like Pizza Hut, Unichem Pharmacy, McDonald's and The Warehouse ensured consistent retail traffic in Leith Place.
“Leith Place has recently received a multi-million-dollar upgrade resulting in a high-amenity, visually appealing and pedestrian-friendly retail environment. This revitalisation has brought a new vibrancy to the town centre,” Brendon Bradley said.
With a population of about 14,000, Tokoroa is the fifth largest town in the Waikato region. It is the administrative centre for the South Waikato District Council as well as the headquarters of the local Raukawa Iwi.
Situated on State Highway 1 in the centre of the North Island, the town is a strategic location for both the farming and forestry sectors. Fonterra’s Lichfield Cheese Factory to the north is the largest in the southern hemisphere and to the south is Oji Fibre Solutions’ flagship pulp-and-paper operation at Kinleith.
A further major boost to the South Waikato economy will be the Olam Food Ingredients (OFI) new dairy plant set to open in Tokoroa later this year.