As the Tauranga CBD undergoes a significant revitalisation, a multi-level office building is being offered to the market for sale and gives prospective purchasers the opportunity to acquire a substantial asset that sits among the new major projects.
Located at 32 Harrington Street in central Tauranga, the property has 6,922sq m of total net lettable area. It sits on a freehold site that spans 2,306sq m.
The property benefits from excellent road profile that includes three street frontages. It also has 38 covered car parks.
The building, known as Harrington House, comprises a ground floor with two podium levels, with split basement car parking, and a five-level office tower, which enjoys expansive views of the inner harbour and city skyline. It recently achieved a 100 per cent NBS rating (DSA).
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The floorplates vary across the podium and upper levels and range in size from 579sq m to 1,945sq m.
Anchored by Beca, who lease space on the first, second and fourth floors, the property has an estimated net passing income of $1,832,370 plus GST per annum.
The other tenants include retail shops, law firms, medical providers, the NZ Transport Agency Waka Kotahi, and other professional services businesses.
A collection of tenants on the fifth and sixth levels, which have panoramic views of the CBD and harbour, are on rolling monthly leases with very low rental rates. The opportunity exists to renovate these levels to attract quality tenants on much higher rentals.
Colliers Brokers Simon Clark and Alan Pracy have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 8 October, unless sold prior.
Clark, Managing Director at Colliers Tauranga, says the property is perfectly positioned to benefit from the major projects that are taking place in the Tauranga CBD.
"This highly visible building sits right in the centre of the city and offers exceptional amenities to the tenants. The Strand hospitality and waterfront precincts are just a short stroll away and there is a new hotel about to start construction directly across the road with conference facilities," Clark says.
"The nearby area has seen significant recent investment with public and private developments taking shape. The location also means civic landmarks such as arts and community centres are nearby.
"With a new council building, library, museum, and the high court, the Tauranga CBD is set to have a refreshed look. The surrounding office developments known as the Northern Quarter and Panorama House will draw even more people to this location."
Pracy, Director at Colliers Hamilton, says with a broad mix of existing tenants this asset offers split-risk income that can be grown over time.
"The lease of the anchor tenant Beca runs until 2028 and there may be potential to negotiate a new agreement with them, while several other tenants have expressed an interest in renewing their leases," Pracy says.
"The functionality of the office space makes it desirable for tenants and there is potential to reconfigure some of the smaller spaces into larger tenancies with more expansive views.
"The building's prime location and proximity to key amenities is a major drawcard for existing and future tenants and should lead to continued demand for space in this premises."
- Supplied by Colliers
