Buildings occupied by the Rotorua Lakes area office of the Department of Conservation (DoC) on leasehold land owned by Forestry Research Institute are being marketed for sale by mortgagee tender closing August 1.
Mark Rendell of Bayleys Rotorua says the ground lease of the 99 Sala St, Whakarewarewa property expiresin 2022 at which point the land goes back to the Forestry Research Institute while improvements remain the property of the owner.
"We've been fielding good inquiry on this mortgagee offering as people see value in the well-maintained, reasonably modern buildings," says Rendell. "The stressed sale conditions offer the chance for a bold new owner to capitalise on the potential the buildings offer down the line while the government tenant income stream provides a tangible return for the foreseeable future.
"The rental lease in place with DoC is for 12 years from August 2004, with one further six-year right of renewal, earning $112,700 per annum."
The 3925sq m leasehold land area is around 2.5km from the Rotorua CBD and is occupied by three separate single-storey office buildings connected by covered walkways with a total floor area of 890sq m. The buildings are interlocking timber system construction; each has a deck area.
"The individual buildings are variously configured to provide a reception area, kitchen facilities, boardroom and meeting room, and storage. There is also a detached double garage and ample on-site parking.
"The property has worked well for DoC which is responsible for the guardianship of 13 major lakes and a variety of geothermal areas and scenic reserves in the wider Rotorua catchment," says Rendell.
"Should DoC not renew its lease in 2016, the buildings would be suitable for an owner occupier to take over for the remainder of the ground lease term. Or they could be relet to office tenants perhaps with forestry connections given the location adjacent to the Whakarewarewa Forest.
"At the conclusion of the leasehold term, the buildings can be moved off-site to new freehold locations where they could have a commercial or a residential usage.
"This is the long-term value inherent in the offering. The buildings are sound, low-maintenance and with minimal reconfiguring could become great residential rental properties."
