Opportunities to get in on the ground floor

The Swanston St, Tokoroa, complex is designed for health professionals. Photo / Supplied

Two properties in the South Waikato town of Tokoroa are being promoted by Bayleys as offering newcomers to commercial property investment the opportunity to secure well leased properties in key locations.

At 59 Swanston St, a building designed and built as a premises for health professionals in 1976 is being marketed by Quinn Ngo of Bayleys Auckland and Brendon Bradley of Bayleys Waikato, and will go under the hammer at the Bayleys Total Property auction in Auckland on September 23.

The 420sq m building almost covers the rectangular freehold 467sq m site, which adjoins a service lane providing additional parking for staff or clients.

The two tenancies are a dental surgery occupying 150sq m with double doors to the Swanston St frontage and a doctor's surgery of 210sq m with access via a covered walkway from this street frontage.

Dr J.L. Busfield operates the dental surgery and has been in the premises since 1998. His latest five-year lease began on May 1, 2008, and he has a further five-year right of renewal term with a final expiry in 2018.

General practitioners Tokoroa Primary Health Care has a two-year lease from February 2008 with two further two-year rights of renewal on the medical centre component of the property.

Ngo says the building has been run successfully since it was developed in the late 1970s as a single-storey complex specifically designed to house health professionals and is close to other health related businesses in Tokoroa's central business area.

There is a pharmacy two doors along from the premises.

Total net rental for the property is $39,700 plus GST per annum, and rates and insurance outgoings are paid proportionately by the tenants.

"This is a well-maintained and well-presented property which provides a real opportunity for a buyer to gain an entry into commercial investment, or for a seasoned investor to add health care premises to their existing portfolio," says Bradley.

Only a block away and visible from State Highway 1 is Radio Forestland in Bridge St, part of the Radio Network's stable of stations.

Mark Harrison and Elaine Westerman of Bayleys Taupo, along with Blair Hutcheson of Bayleys Waikato, are marketing the Radio Forestland building, at 20 Bridge St, which was purpose-built as a radio station in 1966.

Tenders close on September 17 with Bayleys Taupo.

On a freehold 1012sq m site, the single-level building has a total area of 280sq m and comprises a reception/foyer area, several sound-proofed studios, a number of individual offices, kitchenette and staff toilet facilities along with a large, open-plan area to the rear of the property.

The South Waikato District Council maintains the otherwise undeveloped corner of the site which has a pleasant garden and seating area.

"The Radio Network has an existing six-year lease over the property with three further three-year rights of renewal beyond that," says Harrison.

The annual net rental is $40,000 plus GST.

"Given its return, the property provides a pretty attractive opportunity for a first-time investor who has been looking out for an affordable commercial building.

"This could be the one to start an investment portfolio with.

"It's even more appealing looking ahead because the existing property could feasibly be extended and redeveloped as it's a strategically-located site given the profile to State Highway 1 and the Commercial Core zoning covering the property," says Harrison.