Multi-tenanted retail block offers rental growth

A high-profile block of retail premises sustaining a tenant mix ranging from a funeral services business and optometrist, through to a hairdressing studio has been placed on the market for sale.

The block at 184–190 Whitaker Street in the central business district of the Waikato township of Te Aroha, comprises four separate tenancies, one of which is currently vacant. A substantial rear portion of the flat property – accessed off Church Street which runs parallel with Whitaker Street – is completely undeveloped grassed yard space.

Sitting on some 1,100sqm of flat rectangular-shaped land zoned commercial under the Matamata-Piako District Council plan, the three tenancies on the Whitaker Street block generate annual rental of $28,796 plus

GST and operating expenses, and encompass:

• Health service practitioner The Eye Place on a current lease running through to 2028, with two further three-year rights of renewal
• Broadway Funeral Homes on a current lease running through to later this year, with three further one-year rights of renewal
• Hair styling studio Chez Helene on a current lease running through to next year

The tenancies within the Whitaker Street block for sale are very much service-orientated enterprises which rely on both high visibility recognition by Te Aroha residents, and the repeat business that brings. Customer parking for clientele visiting all of the businesses within the block is available on Whitaker Street immediately outside the locations.

The land and 300sqm building at 184–190 Whitaker Street in Te Aroha are being marketed for sale at auction on March 19 through Bayleys Ngatea.

Salesperson Josh Smith said the property would appeal to investors looking for a retail presence to occupy the currently vacant premises and would also attract interest from property developers looking to add value to the location by building on the back portion of the address.

“Tenanting the currently vacant site within the block would deliver the obvious immediate benefit of increasing overall rental returns. Meanwhile from a long-term planning perspective, the rear of the site is a veritable blank canvas which, subject to council consent, could sustain a warehouse, workshops, or the likes of terraced tilt-slab ‘tradie’ style commercial units,” he said.

Whitaker Street is Te Aroha’s main retail ‘spine’ – sustaining a multitude of service entities ranging from food and beverage outlets or health and beauty premises, through to professional services practices and supermarkets.

“Each of the tenancies within 184–190 Whitaker Street enjoys their own access points from the pavement while sitting under the long-run awning spreading the width of the property. The building is a traditional commercial structure – with a single canopy and flat roof profile,” Smith said.

“The layout of the tenancies means internal layout changes specific to any change of tenancy can be made to any of the units without disrupting the business activities adjoining occupiers, while the diverse operations of the three current tenancies ensure they run seamlessly with each other.”

With a population of approximately 4,650 residents, Te Aroha is a rural services town renown for more than a century for is therapeutic natural waters – such as the Mokena Geyser which is the only soda water geyser in the world, as well as its mineral pools open to the public.

In a move aimed at reinvigorating the town’s primary tourism offering around the natural spa, Matamata-Piako District Council has committed some $5 million towards refurbishing the attraction over the coming two years. Concurrently, the council has also committed funding towards improving street lighting in Te Aroha’s central business district to increase both pedestrian and traffic safety on Whitaker Street.

“It is encouraging to see the council taking such pro-active steps towards building on Te Aroha’s current infrastructure assets – with a long-term view of securing the area’s economic prosperity. Owners of commercial property in the town can take confidence from the planning put in place by the local body authority,” Smith said.