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Government tenant underpins value in Naenae building

The Ministry of Social Development (MSD) has occupied the building at 2 Vogel Street, near its intersection with main arterial Cambridge Terrace, since 2005, and last year renewed its lease for a further nine years.

The property returns a gross income of $170,820 plus GST per annum.

Johnny Curtis of Bayleys Wellington Commercial, says MSD operates a Community Link client service centre from the premises – understood to be among the second-busiest of its Wellington region branches.

He is marketing the property for auction, to take place at 11am Thursday 18th March at Bayleys’ Wellington CBD offices.

Curtis said MSD showed further commitment to the site by undertaking a significant upgrade to the building in late-2019.

“The fitout has been refurbished, and new air-conditioning and LED lighting installed,” he said.

“It’s a very functional base for MSD in Naenae and is well-positioned to serve the growing community.”

The 936sqm single-level building has a largely open plan layout with some breakout offices, good storage and staff/client amenities. It has an assessed seismic rating of 68-percent new building standard.

Zoned General Business, the land is 1,459sqm, and the property has dual access with car parking at the front and rear.

Curtis said with the MSD tenancy in place, the property represents a sought-after “bottom drawer”, passive investment in a suburb that is undergoing a resurgence.

“The Hutt City Council recently approved its community plan to reinvigorate Naenae’s town centre.

“The Naenae Town Centre Spatial Plan has guidelines overlaying future development within the suburb and aims to ensure that the needs of the community are better served.

'The Naenae Pool is being revamped, other community amenities are being assessed and the intention is to take Naenae forward in the best way possible.

“Meanwhile, a private investor has purchased the former Naenae Hotel and intends redeveloping it into long-term accommodation to help address an identified need.”

Curtis said the MSD-occupied building may be of interest to an investor/developer from a long-term hold perspective given the generic nature of the building itself, and the pivotal site it is on.

“Beyond its existing lease commitment, there is tangible value in the building and the site,” he said.

“Centrally-located land will hold its value in a suburb like Naenae which is evolving on the back of a constrained residential housing market and the emergence of higher-density residential accommodation models.

“This building has an open span without pillars and could be repurposed into a retail or warehousing offering.”

Click here for more information on the listing.

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