Large Mount Maunganui retail and commercial block up for sale
One of the biggest retail and commercial blocks in the highly sought after Tauranga location of Mount Maunganui has been placed on the market for sale.
The 1802 square metres of buildings sit on 2849 square metres of commercially-zoned freehold land, and are being marketed for sale by tender through Bayleys Tauranga salespeople Brendon Bradley and Lynn Bradley, with tenders closing on May 11.
Ms Bradley said the offering presented: “a rare once in a lifetime opportunity” for investors or developers to secure a large block of the Mount Maunganui CBD where land holdings of this size were seldom brought to the market.
The land and two buildings stretching from 260 – 272 Maunganui Road contain eight separate tenancies on two titles and have a combined current rating valuation of $5,785,000. Positioned at the southern end of the Mount Maunganui shopping centre the property sits on a high profile corner site with two road frontages to Maunganui Road and Nikau Crescent.
Ms Bradley said the property was multi tenanted with a strong mix of both national and local tenants offering an excellent split risk investment that was currently returning an annual net rental of $252,302 + GST from eight leases, that had strong rental growth potential.
“The Mount retail village with its beach to boutique shopping culture is a retail precinct where tenancy demand constantly exceeds supply. The current owners have owned the property for 37 years and over this long tenure of ownership have advised they have had 100 percent occupancy” she said.
The pair of single level multi-unit retail shopping blocks provide some 65 metres of street frontage Maunganui Road – the main arterial route in and out of the Mount Town Centre –together with 27 metres of frontage to Nikau Crescent opposite the lush, green Coronation Park which is always busy with craft markets or people relaxing under the trees on a hot summer’s day.
The northern building forms an ‘L’ shape and comprises a gross area of 460m² with four individual tenancies and a 160m² canopy to both street frontages. The southern building comprises a gross area of 968m², also with four individual tenancies and has a 158m² canopy to the street frontage. Connecting the buildings is a 56m² canopy that provides cover for pedestrian access from Mount Maunganui Road to space at the rear of the site that provides free car parking for up to 42 vehicles.
Both buildings within the block were constructed in the late 1970s, with further extensions and renovations in the early 2000s. Built of reinforced concrete floors and foundations, concrete block walls, aluminum joinery and long run roofing, both structures have been assessed with a C-grade seismic rating. The buildings have been extremely well maintained both internally and externally by the current owners.
Mr Bradley said that as the retail and commercial hub of the mount pushed further south toward the residential part of the peninsula, the area would begin to see an increasing number of commercially-residentially orientated properties.
“Already there are multi-storey apartment blocks emerging in this direction along the inner-harbour aspect of Mount Maunganui” he said.
“As a natural extension of this trend, the properties at 260 – 272 Maunganui Road, subject to council consents, could be developed higher to a maximum of 12 metres in a mixed use format. This would allow for an additional three storeys of either commercial or residential premises to be built above the existing street frontage level. And given the two road frontages and service lane surrounding this block, the site would be extremely well suited to a multi-level redevelopment.
“Under that paradigm, any apartments on the upper floor of a 12 metre reconfigured development would have potential views to the Pilot Bay reach of the inner harbour. And, being positioned directly across the road from Coronation Park, they will have a green space amenity on their doorstep.”
The northern end of Maunganui Road is the Mount’s main area for retail tenancies that is a hub for high street shopping – featuring a mix of fashion outlets, gift shops, art galleries, cafes, bars, restaurants, and amenity businesses.
A new visitor’s centre is planned to be built within Coronation Park across the road from the property at 260 – 272 Maunganui Road which is also in close proximity to the port where passengers disembark from the 80 cruise ships that visit the Mount each year.
Tauranga recorded a four percent rise in its gross domestic product growth rate over the year to 2016 compared to a national growth rate of 2.7 percent. Statistics from data collection and analysis firm Infometrics also report that Tauranga’s unemployment rate is .7 percent below the national average.