CBD tower just what doctors ordered
The ground level of the nine-level building at 111 Customhouse Quay is leased to fashion store Moochi and Shape Hairdressing. Photo / Supplied
A nine-level central Wellington office tower which is home to the capital’s newest medical centre and offering significant potential rental upside is for sale.
The 1960s building, opposite the Wellington’s distinctive Old Bank arcade building, is about 75 per cent leased, says Mark Sherlock of Bayleys Wellington, who is marketing 111 Customhouse Quay for sale by tender with a closing date of September 13.
“The building offers upside for a new owner who could finish refurbishing the balance of the tenancies and lease them up to take the property to full occupancy,” Sherlock says.
“About 860sq m of building area is vacant out of a total 3471sq m,” he says.
Currently the building earns net rent of around $445,900 from a range of tenants on varying lease terms.
“Health-related tenants rub shoulders with the more usual corporate entities, professional service providers and retail businesses,” says Sherlock.
A medical reception area within the Customhouse Quay building. Photo / Supplied
“Along with general practitioners, there is a hand rehabilitation specialist, physiotherapists, acupuncturist, sports’ massage therapists and complementary health practitioners – all co-existing within the office tower which provides a good quality working environment.”
Retail tenancies on the ground floor of the building are occupied by fashion store Moochi and Shape Hairdressing. The building has 10 basement car parks and the office floors on Levels 1-9 have various configurations, with harbour views from the higher floors on the eastern side of the building.
The Customhouse Quay property is being sold by a syndicate of investors which clears the way for a new owner or owners to cement a presence in the CBD within metres of Lambton Quay and Stewart Damsons corner.
“It’s under the management of South Island-based Anaro Investment Group, which is a full service commercial property investment and asset management company with properties throughout New Zealand,” Sherlock says.
Matt Gilchrist, practice manager for Central Wellington Medical Centre, which occupies the eighth floor, says the building is a good fit for the new medical centre’s philosophy and growing clientele.
“Being on the eighth floor of a CBD office block is not the obvious place to base a doctor’s surgery but it’s working out really well,” says Gilchrist.
“We opened just on a year ago and deliberately fitted out our space for longevity and future growth. There are definite cost-benefits in being higher up in the building and we are a destination business so don’t require street-front profile.
The 1960s building in the Wellington CBD is home to the capital’s newest medical centre. Photo / Supplied
“It’s a new look medical centre with flexible opening hours and a broad service offering catering to a registered client base and visitors to the city.
“Wellington has an evolving population and that’s certainly been reflected in our business which was the fastest growing practice in New Zealand in the last year based on recorded patient numbers.”
Gilchrist who is a widely-experienced manager in the healthcare sector says there is a trend for medical centres to seek out locations away from the usual suburban outposts and in doing so, they’re opening up their potential client bases.
“It’s taking the doctors’ practices to the most convenient locations. If you work long hours in the city centre then it makes sense to have a medical centre nearby so you can fit a visit in around your working day,” says Gilchrist.
“Likewise, visitors to the city staying in hotels and other accommodation find it convenient to have medical treatment available within walking distance.”