Thames NZ Post building
The building at 517 Pollen Street – defined by a red border - accommodates five tenants on its first floor. Photo / Supplied
A building for sale in the core retail area of Thames lists New Zealand Post among its tenants.
JLL is marketing the two-level L-shaped building at 517 Pollen St.
“With an area of 1078sq m, the reinforced concrete building dates back to 1937, occupying a 1521sq m site in the town centre,” says JLL agent Jason Armstrong.
“The building, which has a high profile locally, is for sale through an expression of interest campaign, closing on April 12.”
Armstrong says the ground floor of the freehold property is leased to NZ Post through to 2028.
The first floor accommodates five tenants, including an architectural firm and a management consultancy, while at the rear of the site there is a carport that forms part of the NZ Post tenancy. “There are also two older-style masonry buildings on the site, but these are vacant.”
Armstrong describes the surrounding area as a mix of low-rise commercial buildings providing retail accommodation.
“The property is in a prime location and the tenancy with NZ Post accounts for around 75 per cent of the overall income, marking 517 Pollen St as a potentially secure investment,” he says.
“It is earning $119,511 (part gross) in annual rent but there is potential to add value by increasing the rental income or by converting the existing space.
“With zoning rules for Thames town centre under the district plan being activity based rather than zone based, the potential for redevelopment is also worth exploring,” says Armstrong.
JLL National Research Manager, Tom Barclay, says regional investment has grown in strength moving through the property cycle.
“While Auckland commercial property is frequently transacted at below 6 per cent yields, regional townships are providing much higher returns for investors,” says Barclay.
“Over the last three years there has been a higher proportion of commercial and industrial sales occurring in the regions. Although there are risks in regional investment due to a smaller pool of potential occupiers, properties with long lease terms to well-established tenants are highly sought-after, particularly in townships with growing populations.”
Thames is the principle service town to the Coromandel district and is often referred to as the ‘gateway to the Coromandel Peninsula’. The township has a broad based economy, which includes the Toyota car complex, farming, fishing and tourist industries.