A strategically located retail property, leased to a cafe, restaurant and hair salon, with a proven rental growth record in Mount Maunganui, is for sale by private treaty at an asking price of $2,570,000 plus GST, if any.
Brendon Bradley, of Bayleys Tauranga, says the premises represent a split-risk asset investment rarely seen on the open market in Maunganui Rd, a major carriageway for Mount Maunganui traffic from the eastern districts of the Bay of Plenty.
"Location is definitely the key word here, underpinned by the fact that the property has shown exceptional rental growth over the past 18 years," says Bradley.
"Forming an integral part of the Phoenix retail precinct, where tenancy demand constantly exceeds supply, the owner says the property has been 100 per cent tenanted without one day of lost rental revenue since it was purchased in 1994. This is reflected in the proven and constant rising rental stream that has produced phenomenal 187 per cent growth in income, with associated capital gain, over that 18-year period."
The property at 107-111 Maunganui Rd, is a single storey retail building of approximately 350sq m with three tenancies on a 710sq m site. The original portion of the building was erected in 1935 with alterations and additions over time, the last in 1972.
The current tenants are Stock X Change bar and cafe, The Drawing Room restaurant and Cuts Hair Salon. Bradley says the current leases have been well-structured for flexibility and future options. The annual net rental is $133,629 plus GST with all three leases due to expire in the final quarter of 2015.
It has concrete foundations, exterior walls of concrete block and concrete with a plaster finish. The roof is corrugated galvanised iron and joinery is a mix of timber and aluminium. There is a veranda at the front plus separate storage and toilet buildings at the rear. Public parking is available on the road frontage on Maunganui Rd and a metalled yard at the rear for tenant parking. Shadelands Service Lane is on the rear boundary and there is pedestrian access on the southeastern boundary.
Bradley says there is further scope to add to the existing buildings to increase the premises' footprint and net lettable floor areas.
The Stock X Change operators have undertaken a considerable fit-out with a new bi-fold aluminium and glass door frontage, polished exposed aggregate flooring and installed air-conditioning. The Drawing Room recently also upgraded and adapted the rear yard space as a paved outdoor courtyard for diners.
Cuts Hair Salon has occupied this site since 1996 with many renovations to keep the premises current.
"Seldom do commercial properties of this calibre come to the market in this location. The strengths of this tightly held Mt Maunganui sector will appeal to discerning and prudent investors looking to acquire a long term growth investment in the Bay of Plenty which is one of the fastest growing regions in New Zealand."