A highly visible commercial building on a prominent corner site in central Mount Maunganui offers buyers the opportunity to acquire a property with steady passive income and significant future development potential.
325 Maunganui Road in Mount Maunganui features two independent single-storey structures linked by a large canopy with a total net lettable area of 384sq m with nine carparks on a strategic 954sq m site that has service lane access at the rear.
The Commercial zoned property has five tenancies, and four are currently leased. The vacant tenancy is a corner courtyard that could be leased for a coffee cart or food truck.
When fully tenanted, market estimates suggest the property could return approximately $144,000 plus GST and operating expenses in net annual rental income.
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The existing tenancies, which include an accountancy practice, dance studio, and an osteopath, run through until either 2023 or 2024 with further rights of renewal but redevelopment clauses are in place that will allow the new owner to pursue development opportunities.
Maunganui Road is located in the heart of Mount Maunganui and is surrounded by a vibrant mix of retail, office, and hospitality tenants.
Colliers brokers Simon Clark and Rob Schoeser have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 10 March, unless sold prior.
Clark, Managing Director at Colliers Tauranga, says the property will provide flexibility for the new owners who will have a range of options open to them for the future.
“The site provides a steady rental stream that will allow the buyer the opportunity to take their time before they strategically plan their next moves for the property,” Clark says.
“One option is to activate the redevelopment clauses and redevelop the site either through intensifying the existing usage or building upwards as the zoning allows for a three or four-storey development that could include residential apartments.
“Alternatively, the purchaser may wish to wait for the current leases to run their course before they occupy the property for their own business ventures.”
Schoeser, Commercial and Industrial Sales Broker at Colliers Tauranga, says the property is perfectly positioned in one of Bay of Plenty’s most sought-after locations.
“We have seen significant demand for commercial sites in downtown Mount Maunganui, which is being driven by the sheer lack of land on this unique beachside peninsular.
“That demand not only extends to buyers looking to place capital into the commercial market in Mount Maunganui but demand among businesses who are keen to lease functional spaces that suit their individual needs.
“Given the beachside location of Mount Maunganui, residential demand remains high as people continue to enjoy the relaxed lifestyle on offer.”
Schoeser says the future is bright for the area, which should experience a bump in tourism later in the year as Covid-19 restrictions continue to ease.
“When we see cruise ships operating again, there will be vessels docking at the adjoining port with tourists spilling out into the downtown retail and hospitality area.
“This property will generate significant interest due to the highly visible nature of the corner site coupled with the future growth potential on offer and we encourage all interested parties to do their due diligence and contact us immediately.”
- Article supplied by Colliers
