Leased CBD fringe office investment for sale

The modern commercial building leased to a national accountancy practice and a longstanding local law firm is for sale in a strategic growth location on Taupō’s CBD fringe.

The high-profile two-storey property on key arterial Titiraupenga Street is fully leased as professional office space, supported by plenty of on-site parking.

Anchored by DPA Chartered Accountants, along with Jensen Waymouth Lawyers, it generates a total net rental return of $180,000 plus outgoings and GST per annum.

DPA provides accounting, business advisory and bookkeeping services to clients nationwide, with teams in Taupō, Masterton and Hawke’s Bay plus travelling experts and remote services.

Taupō-based law firm Jensen Waymouth Lawyers was established in 1995. Its experienced legal team specialises in estates and property.

The businesses occupy premises of approximately 226 and 132 square metres, respectively, plus a share of common areas and on-site parking.

Both leases run through to 2028 with further rights of renewal, if fully exercised, extending to 2040. The lease agreements provide for market rent reviews on each renewal.

The freehold property at 77 Titiraupenga Street, Taupō, is being offered to buyers by way of a tender closing on Wednesday 15 April, unless sold prior. The sale is being marketed by Gary Harwood and Lisa Christensen of Bayleys Taupō.

Harwood said the investment was underpinned by a highly strategic more than 1,100-square-metre freehold landholding right on the eastern fringe of the town centre.

“With the core CBD area constricted by the Waikato River to the north and west and Lake Taupō to the south, this location is the only direction the town centre can expand. This cements future value and desirability, positioning this site perfectly to reap benefits from future expansion,” Harwood said.

Town planners recognise the location as part of a unique transition area, with planning provisions reflecting its role in accommodating town centre growth.

While it is currently zoned Medium Density Residential under Taupō’s district plan, this also provides for activities such as professional offices, commercial accommodation, community facilities, and small-scale retail, if they meet certain requirements around noise, parking, and building scale.

The well-maintained approximately 571-square-metre building was constructed in 2009. Its two commercial tenancies are currently configured with a blend of open-plan office accommodation and partitioned office/meeting rooms, and benefit from a good supply of natural light.

The building has an A-grade Initial Evaluation Procedure seismic rating of 100 percent of new building standard.

The site contains on-site parking for 25 vehicles, supplemented by plenty of public parking directly in front and along Titiraupenga Street.

Christensen said the position on Titiraupenga Street, the primary arterial route connecting Taupō’s northern and southern precincts, was a key selling point.

“The property and tenants reap rewards in the form of excellent visibility and exposure to high traffic counts and seamless connections with the town centre and residential catchments.

“The diverse appeal of this location is demonstrated by the nearby presence of national retail brands such as Chemist Warehouse and Supercheap Auto, along with motels and professional offices.

“An extensive array of town amenities, shops, professional services, and hospitality offerings are within easy reach,” Christensen said.