A large beachfront redevelopment property with breathtaking views of Mount Maunganui and Pilot Bay is being marketed for sale as an "extraordinary opportunity" for investors and developers.
Located near the base of The Mount — at 6 The Mall — the 2023sq m property is already zoned for high-density residential development.
Ten existing dwellings return almost $180,000 in net annual rent, potentially offering holding income for a new owner planning to unlock the site's potential.
Colliers International is selling the property by deadline private treaty, closing at 4pm, February 14, unless sold earlier.
Colliers Tauranga MD, Simon Clark, says redevelopment sites of this scale are almost impossible to find at The Mount, let alone on the waterfront. "The property is at the northern end of The Mall, within walking distance of restaurants, shops and recreational facilities.
"This area will always remain in high demand from premium residential buyers, who are starved of opportunities to purchase new accommodation in this exclusive beachside location."
High Density Residential zoning allows for up to 20 long-term dwellings to be built on the site.
"Residents will be able to enjoy expansive views of the inner harbour and Pilot Bay, as well as Mauao/The Mount along the wide northern boundary.
"With its stunning northerly aspect, generous zoning and near-unbeatable location, you'd be hard-pressed to find a more desirable residential redevelopment site in the area."
The property will appeal to a broad range of buyers, says Clark.
"Scarcity of large, high-density sites like this will likely drive up the underlying land value over time, making it attractive to both investors and developers.
"A new owner could sit back and enjoy excellent rental income from the existing long-term residential tenancies, while banking on future capital gains.
"A more active investor could reposition the property for further upside through managed short-term holiday accommodation.
"Developers can draw on solid holding income, while planning a comprehensive residential redevelopment scheme."
Colliers' Duncan Woodhouse, says any new development will likely appeal to both visitors to — and residents of — the hugely popular resort town.
"There are numerous recreational and lifestyle amenities within an easy walking distance.
"The Mount's main beach is great for sunbathing, swimming and surfing, while Pilot Bay offers protected inner-harbour swimming and a ramp for launching trailer boats.
"Walking tracks on-and-around Mauao offer idyllic coastal views. The beautiful natural environment is complemented by the constantly changing scenes of the inner harbour, with cruise ships and launches always coming and going."
The property is held on seven cross-lease titles, which are all being sold at once.
A 349sq m building at the front of the site is on a single title, with the remaining titles divided among six units in a 357sq m block of flats at the rear.
The front building, known as the Mereden flats, is an Art Deco block constructed in the 1940s. It was among the first apartment developments at The Mount. The two-level-building comprises four two-bedroom flats on a mix short- and long-term leases.
It is constructed of concrete piles with timber floors, stucco exterior cladding, newer aluminium windows and a concrete tile roof.
The rear building is a newer block of flats constructed in the late 1960s. It comprises three ground floor units, each with two bedrooms, and three upstairs units, each with one bedroom. All six units are leased on a long-term basis. There are also six carport and storage areas at the rear.
The rear building has concrete foundations and floor, aluminium joinery and a mix of concrete blocks and cladding on the exterior.
High Density Residential zoning allows for an intensive mix of visitor and permanent accommodation. Development of up to 9m in height is allowed.
One dwelling or self-contained visitor accommodation unit is permitted per 100sq m.