Big Mount retail block for sale
ne of the biggest retail and commercial blocks in sought- after Mt Maunganui is for sale by tender. The 1802sq m of buildings — on 2849sq me of commercially- zoned freehold land — are being marketed for sale by Bayleys Tauranga salespeople Brendon Bradley and Lynn Bradley.
Tenders for the property, featured in Bayleys’ Total Property portfolio magazine, close on May 11.
Lynn Bradley says the offering presents a once in a lifetime opportunity for investors or developers to secure a large block of the Mount Maunganui CBD, where land holdings of this size were seldom brought to the market.
The land and t wo buildings, stretching from 260- 272 Maunganui Rd, contain eight separate tenancies on two titles, with a combined current rating valuation of $ 5,785,000.
Positioned at the southern end of the Mt Maunganui shopping centre, the property sits on a corner site with frontages to Maunganui Rd and Nikau Crescent.
Bradley says the property is multitenanted with a strong mix of both national and local tenants offering an excellent split risk investment that was currently returning an annual net rental of $ 252,302 net from eight leases. Rental growth potential i s strong.
“The Mount retail village, with its beach- to- boutique shopping culture, is a retail precinct where tenancy demand constantly exceeds supply.
The current owners have had the property for 37 years and over this long tenure of ownership have advised they have had 100 per cent occupancy” she says.
The pair of single- level multi- unit retail shopping blocks provide some 65m of street frontage in Maunganui Rd, the main arterial route in and out of the Mount Town Centre.
There’s also 27m of frontage to Nikau Crescent opposite Coronation Park, which hosts craft markets or people relaxing under the trees on a hot summer day.
The northern building forms an L- shape and comprises a gross area of 460sq m with four individual tenancies and a 160sq m canopy to both street frontages.
The southern building comprises a gross area of 968sq m, also with four individual tenancies and has a 158sq m canopy to the street frontage.
Connecting the buildings is a 56sq m canopy that provides cover for pedestrian access from Mt Maunganui Rd to space at the rear of the site. This provides free car parking for up to 42 vehicles.
Both buildings within the block were constructed in the late 1970s, with further extensions and renovations in the early 2000s. Built of reinforced concrete floors and foundations, concrete block walls, aluminium joinery and long- run roofing, both structures have been assessed with a C- grade seismic rating.
The buildings have been well maintained inside and out.
Brendon Bradley predicts increased apartmenbt development as the retail and commercial hub of the mount pushes further south, toward the residential part of the peninsula. “Already there are multistorey apartment blocks emerging in this direction along the inner- harbour aspect of Mt Maunganui,” he says.
“As a natural extension of this trend, the properties at 260- 272 Maunganui Rd, subject to council consents, could be developed higher to a maximum of 12m in a mixed- use format.
“This would allow for an addi- tional three- storeys of either commercial or residential premises, to be built above the existing street frontage level.
And given the two road frontages and service lane surrounding this block, the site would be extremely well suited to a multi- level redevelopment.
“Under that paradigm, any apartments on the upper floor of a 12m re- configured development could have views to the Pilot Bay. And, being positioned directly across the road from Coronation Park, they would have a green space amenity on their doorstep.”
The northern end of Maunganui Rd is the Mount’s main area for retail tenancies.
It is a hub for high street shopping, featuring a mix of fashion outlets, gift shops, art galleries, cafes, bars, restaurants, and amenity businesses.
A new visitor centre is planned to be built within Coronation Park across the road — in close proximity to the port where passengers disembark from the 80 cruise ships that visit the Mount annually.