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Healthcare hub for sale is a ‘shot on the arm’ for commercial property investors

The land and buildings housing one of the bigger medical and wellbeing centres in the Waikato township of Cambridge has been placed on the market for sale.

The 681 square metre Duke St Medical Centre complex on the corner of Duke and Commerce streets has five medical and healthcare tenants and four commercial tenants operating from one building, and is built on a combined 979 square metre section.

This full-service medical centre encompasses a doctors’ surgery, neurological services, pharmacy, and other health service providers - servicing not only the urban Cambridge community, but also the surrounding rural areas.

Combined, the tenancies generate a net annual return of $143,823 plus GST. Tenants operating from within the single-storey building include:

• Duke Street Health and Medical Centre on a six-year lease running through until 2026, with two three-year rights of renewal
• Duke Street Pharmacy on a three-year lease running through until 2023, with three further three-year rights of renewal
• Waikato Neurology Group on a lease running through until 2026, with two three-year rights of renewal
• Asian beauty therapy and massage studio Bann Thai Spa on a lease running through until 2021, with three further three-year rights of renewal
• The Nation Nail Salon beautician clinic on a lease running through until 2023 with two further three-year rights of renewal
• Healthcare provider Priority Wellness on a revolving monthly tenancy
• Psychologist Doris Coveny trading as Mind Bubbles on a revolving monthly tenancy
• Insurance broking firm PIC Insurance Services on a revolving monthly tenancy.

Now the land and building at 73 Duke Street are being jointly marketed for sale at auction on June 25 through Bayleys Cambridge and Bayleys Tauranga. Salespeople Willem Brown and Brendon Bradley said the recent Covid-19 lockdown had verified the value of the property’s occupancy mix – with many of the tenants deemed to be ‘essential service’ providers.

“Centrally located, the Duke St Medical Centre is approximately 100 metres from Cambridge’s town centre. It is easily accessible for service users - with a carpark behind the building for 10 vehicles and additional vehicle parking on the streets immediately outside the property,” Mr Brown said.

“As a one-stop-shop medical centre in Cambridge, the healthcare services provided within the Duke St Medical Centre premises deliver essential amenities to the region’s population.”

“The broad yet complimentary businesses portfolio ensures operational compatibility within the centre - providing a full-service offering to users in a ‘single location,” Mr Brown said.

“Additionally, the bigger lease agreements at the Duke St Medical Centre all have occupancy renewal terms attached to them – indicating an ongoing commitment to the business model.”

Mr Bradley said the montage of leases delivered a broad risk profile to underpin a diversified income source for any potential new owner looking at the building for investment returns.

He said the concrete slab foundation/concrete stucco wall building was constructed in the 1980s, with the extension fronting onto Duke Street added in 2006. It had a B-grade seismic rating. The centre features multiple consultation rooms, a tea room, reception area and clinical rooms, and is zoned commercial 8A.

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