The Steele Building, at 185-187 Maunganui Rd. Photo / Supplied
The land and buildings housing a "fashionable" mix of retail and commercial tenancies at Mt Maunganui are for sale.
The Steele Building, at 185-187 Maunganui Rd, is leased to three street-level retail outlets, plus three graphic design and marketing companies.
Featured in Bayleys' just-released Total Property portfolio magazine, it will go to auction on February 28 and is being marketed through Bayleys Tauranga. Salesperson Brendon Bradley says all tenants benefit from a high profile on the Mount's busiest street.
"With multiple tenancies spread across a balanced raft of economic and retail sectors, the occupancy portfolio within Steele Building offers a useful spread-risk investment profile for any new investor-owner," he says.
The 522sq m two-level building sits on the 918sq m of rectangular-shaped freehold site, zoned for Commercial use by Tauranga City Council.
In addition to the main building, there is a converted and refurbished 86sq m garage/studio at the rear of the premises, also let out on a commercial basis.
Generating a combined rent roll of $154,745, the six commercial tenancies at the address, are:
1. the womens' fashion clothing retail outlet Neche Design Store, which is on a lease expiring later this year, with two further three-year rights of renewal — generating annual net rent of $38,000 plus GST;
2. sports shoe retailer Gallery Athletic Limited, on a lease expiring next year — generating annual net rent of $38,000 plus GST;
3. games and puzzle shop Just for Fun Ltd, on a lease expiring next year — generating annual net rent of $27,330 plus GST;
4. branding and graphic design agency Woods Creative Ltd, on a year lease expiring next year — generating annual net rent of $21,857 plus GST;
5. customer relationship management consultancy BrandXP Limited, on a lease expiring later this year — generating annual net rent of $20,778 plus GST; and
6. photography workshop Tulloch Studio, on a lease expiring next year, with two further one-year rights of renewal — generating annual net rent of $8780 plus GST.
The tenancies lease 11 of 20 car parks available, which are accessed from Shadelands Lane at the rear.
The Steele Building was constructed in 1955 of reinforced concrete framing and reinforced concrete perimeter walls. The standalone ground-level garage at the rear of the property was added later.
Bradley says the building's floorplate and positioning is reflective of many neighbouring commercial properties — sitting directly on the busy retail strip, with 15m of pavement divided relatively equally among the three ground floor retail tenancies, with occupant car parking at the rear.
The three retail tenancies each have their own individual office/storage space at the rear of the shops, and together share two externally accessed toilets. Stairs from the front of the building lead to the first floor, where individual commercial office tenants have their own toilet and kitchenette facilities.
The property is set at the northern end of Maunganui Rd, among a mix of fashion outlets, gift shops, art galleries, cafes, bars, restaurants, and amenity businesses.
The Commercial zoning allows for potential future redevelopment of up to 12m high in a mixed use format, Bradley says multi-storey apartment blocks are already emerging in this part of the Mount along the inner harbour aspect of Mt Maunganui.
He says development covenants allow for an additional three-storeys of commercial or residential premises to be built above the existing street frontage level.
"In its current configuration, there is potential to generate additional income from the site, by leasing out some of the additional nine non-designated car parking spaces at the rear of the premises," says Bradley.
"Availability of parking spaces would benefit any new tenancies taking up residency in the building."