The land and two buildings, stretching from 260 to 272 Maunganui Rd, contain eight separate tenancies on two titles. Photo / Supplied
One of the biggest retail and commercial blocks in Mt Maunganui is for sale by tender.
The 1802sq m of buildings - on 2849sq m of commercially-zoned freehold land - are being marketed for sale by Bayleys Tauranga salespeople Brendon Bradley and Lynn Bradley.
Tenders for the property, featured in Bayleys' Total Property portfolio magazine, close on May 11.
Brendon Bradley says the offering presents a 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 are seldom brought to the market.
The land and two buildings, stretching from 260 to 272 Maunganui Rd, contain eight separate tenancies on two titles, with a combined current rating valuation of $5,785,000.
Positioned at the southern end of the Mt Maunganui shopping centre, the property sits on a corner site with frontages to Maunganui Rd and Nikau Crescent.
Lynn Bradley says the property is 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 net from eight leases. Rental growth potential is strong.
"The Mount retail village, with its beach-to-boutique shopping culture, is a retail precinct where tenancy demand constantly exceeds supply," she says.
"The current owners have had the property for 37 years and over this long tenure of ownership have advised they have had 100 per cent occupancy."
The pair of single-level multi-unit retail shopping blocks have about 65m of street frontage to Maunganui Rd, the main arterial route in and out of the Mount's Town Centre.
There's also 27m of frontage to Nikau Crescent opposite Coronation Park, which hosts craft markets or people relaxing under the trees during summer.
The northern building forms an L-shape and comprises a gross area of 460sq m with four individual tenancies and a 160sq m canopy to both street frontages.
The southern building has a gross area of 968sq m, also with four individual tenancies, and has a 158sq m canopy to the street frontage.
Connecting the buildings is a 56sq m canopy that gives cover for pedestrian access from Mt Maunganui Rd to space at the rear of the site. This has 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, aluminium joinery and long-run roofing, both structures have been assessed with a C-grade seismic rating.
The buildings have been well maintained inside and out.
Bradley predicts increased apartment development as the retail and commercial hub of the mount pushes further south, toward the residential part of the peninsula.
"Already there are multi-storey apartment blocks emerging in this direction along the inner-harbour aspect of Mt Maunganui," he says.
"As a natural extension of this trend, the properties at 260-272 Maunganui Rd, subject to council consents, could be developed higher to a maximum of 12m 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 12m re-configured development could have views to the Pilot Bay; and, being positioned directly across the road from Coronation Park, they would have a green space amenity on their doorstep."
The northern end of Maunganui Rd is the Mount's main area for retail tenancies.
It 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 centre is planned to be built within Coronation Park across the road - close to the port where passengers disembark from the 80 cruise ships that visit the Mount annually.
Tauranga recorded a 4 per cent rise in its gross domestic product growth rate over the year to 2016 compared to a national growth rate of 2.7 per cent.
Infometrics statistics show Tauranga's unemployment rate is .7 percent below the national average.