One of Mount Maunganui’s few beachfront commercial properties is for sale with locked-in rental growth from an award-winning cafe that is a favourite among locals and tourists in this iconic Kiwi holiday spot.
The modern retail unit on Marine Parade is superbly located opposite the renowned Tay Street surf break, which draws large numbers of surfers and swimmers all year round.
It is occupied by Tay Street Beach Cafe – an established and successful business that has been operating for the last 10 years and is now one of the ‘go-to’ beachside eateries at the Mount.
Colliers International has been exclusively appointed to market Unit 6, 154 Marine Parade, Mount Maunganui for sale by auction at 11am on Thursday 18 February, unless it is sold earlier.
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Simon Clark of Colliers Tauranga says the iconic location, strong tenant covenant, and quality modern building add up to an exceptional investment.
“This is a unique commercial property investment – a modern cafe premise with access to ample north-facing outdoor seating, situated on the absolute beachfront of Marine Parade.
“The location is one of only a handful of commercially zoned properties along the beach strip and located directly across from one of the Mount's best surf spots.
“This property offers a sheltered sunny aspect with a great combination of large internal areas, as well as a great flow to a large outdoor area, to cater for customers all year round.
“Rarely does such a well-located investment opportunity become available, especially with a modern, low-maintenance building, successful long-term tenant, and fixed annual rental growth.”
The property is part of a modern mixed-use development comprising an underground car park, two ground-floor retail units, and five apartments on the top three levels. It was completed in 2008 and upgraded in 2019.
The unit provides 115.27sq m of internal space including a 77.97q m cafe, plus a rear storage area, toilet and office, as well as a disabled toilet and corridor shared with the adjoining retail unit.
The deck provides 65.3sq m of outdoor space, which is supplemented by pavement seating on a rent-free yearly licence to council. Two off-street car parks are also provided.
Rob Schoeser of Colliers Tauranga says Tay Street Beach Cafe returns $82,650 in net annual rent, with rental growth locked in at 3 per cent a year.
“The business is on a three-year lease with three rights of renewal. Final lease expiry is in 2031, making this a great long-term investment backed by a longstanding, well-established tenant.
“Tay Street Beach Cafe has become one of the Mount’s most popular beachside destinations, offering breakfast, lunch and dinner alongside coffee, wine and craft beer.
“The menu is a fusion of traditional and Asian fare with a focus on flavoursome, fresh and healthy meals, highlighting top quality local produce.
“The cafe won two awards in 2016 and 2017, which highlights the enduring appeal of this established business.”
