The land and building housing a popular two-storey al-fresco drinking and dining establishment on the Tauranga Harbour foreshore have been placed on the market for sale.
The 134sq m property at 53 The Strand in Central Tauranga contains the well-established hospitality operations of casual dining venue Brooklyn in a 264.3 square metre building.
Brooklyn's hospitality operations feature a dining component in 142 square metres of the upper level with a prominent glass balustrade-enclosed deck sitting over the pavement below, and the venue's bar occupying some 122 square metres on the ground floor – enabling Brooklyn to run pavement table service.
Brooklyn bar and restaurant is on a lease running through to 2028 with a further six-year right of renewal, generating annual rental of $67,500 and the tenant paying all outgoings. The commercial rent for 53 The Strand is set to increase to $75,500 when the property sells and a new owner takes possession.
The property is now being jointly marketed for sale at auction at 1pm on October 30th through Lloyd Davidson of Bayleys Tauranga and Philip Hunt of Ray White Commercial Tauranga. Davidson said the freehold land was zoned city centre under Tauranga City Council's spatial plan, which allowed for buildings up to 16-metres high – equating to what could be a street level retail premises with four storeys above.
Davidson said the property was constructed in the early 1950s and was given the name Anderson's Building. Strengthening work was undertaken in 2003 which saw portal frames and cross-bracing installed. Anderson's Building now has a resulting new building standards (NBS) rating of 71 percent (B Grade).
"Under Council's planning framework, potential long-term redevelopment of the site could allow for multiple options – such as retail or commercial premises at street level with commercial offices or apartments above, or most likely a mixed-use model containing commercial units on the ground floor and residential dwellings above," he said.
"Properties situated along The Strand really are in the 'grandstand' position for real estate – being in the nucleus of Tauranga's CBD - as they will never have their views built out."
"Located directly across the road from the Council-run car parking amenity and recreational park space beside the harbour, any development upward at 53 The Strand would of course open up substantial water views over the open space and across to the Mount – just like it has next door," Davidson said.
The Anderson's Building housing Brooklyn sits immediately beside a four-storey newly-built commercial block erected last year and sold earlier this year. Comparing them, Hunt said the two premises are vastly different entities from an investment and real estate ownership perspective.
"The redeveloped premises at 51 The Strand – with five separate tenancies generating annual net rental of $362,777 plus GST – delivered its new owner, a Queenstown property syndication, a yield of just on five percent. A similar yield should be replicated from the sale of 53 The Strand – making it attractive as a long-term investment," Hunt said.
"With a potential lease running through to 2034, the Anderson's Building is positioned to replicate the next evolution of what has been created next door."
The property features in Bayleys' latest Total Property portfolio magazine.