The modern office premises housing one of New Zealand’s top property developers and a key iwi organisation have been put on the market for sale.
Located in Tauranga’s Seventeenth Avenue Business Park, the freehold property is fully leased to Classic Developments and Ngati Ranginui Iwi Society.
The two tenancies generate total net rental income of $186,564 plus outgoings and GST per annum.
Founded in the Bay of Plenty in the late 1990s, the Classic group’s operations now span from Queenstown and Canterbury to Wellington, Waikato, Auckland and Northland. Classic Developments specialises in the planning, development, project management and construction of residential, commercial and industrial property.
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It forms part of a Tauranga-based group that was ranked fourth in a recent Herald ‘power list’ of the country’s busiest house builders, completing some 636 homes in the year to October for $243 million.
Classic Developments NZ Ltd pays net annual rent of $94,080 plus outgoings and GST for its approximately 341sq m premises with nine car parks.
Its current lease runs through to 2023, with two further three-year rights of renewal. It incorporates two-yearly CPI rent reviews except where replaced by market reviews scheduled at each renewal.
Ngati Ranginui Iwi Society Incorporated manages fishing assets, health and social services, administration support and tribal representation on behalf of iwi members. In operation since 1990, it now employs some 19 full-time and 70 part-time staff serving 6000-plus registered members.
This organisation also occupies some 341sq m with nine car parks, on a current lease that extends to 2023 with three further three-year rights of renewal.
Its tenancy generates annual net rental income of $92,484 plus outgoings and GST. Rent reviews are on a similar schedule to the other tenancy, with increases capped at 3 per cent.
The property at 166 Seventeenth Avenue, Tauranga, is now being marketed for sale through sole agents Lloyd Davidson and Rory Brown of Bayleys Tauranga.
Sale is by deadline private treaty closing on Thursday 17 March, unless it is sold earlier.
Davidson said the offering consisted of a building of approximately 692sq m on a near-level site of some 1724sq m. The site supports 18 car parks, including two accessible parks.
“Designed and built in 2016 by Classic Developments’ construction company, award-winning Tauranga business CBC Construction, this modern, single-storey commercial building provides a practical and efficient working environment.
“This high-quality contemporary office accommodation is configured into two equal-sized tenancies befitting the two well-established, high-profile occupiers.
“The quality of the building, and its location within the well-regarded Seventeenth Avenue Business Park, will continue to assure wide tenant appeal. The site’s proximity to Tauranga Hospital would make it particularly suitable for future health-related tenants,” said Davidson.
Brown said the property’s Commercial zoning under Tauranga’s city plan allowed for a variety of commercial-type activities, with a maximum building height of 12m.
“Permitted uses include business activities, ancillary retail and offices, visitor accommodation and educational facilities, as well as residential activities which are subject to development controls,” he said.
Neighbours within the Seventeenth Avenue Business Park include CBC Construction, the Blind Foundation, Bay of Plenty District Health Board, Northern Health School, Venturo Urology and Maori-led education provider Te Wananga o Aotearoa.
“Conveniently positioned about 3.5km southwest of central Tauranga, this is a rare ‘A-grade’ Tauranga commercial investment that will appeal to investors looking for income and built-in growth,” Brown said.
- Article supplied by Bayleys
