Future development potential in retail hotspot
A Mt Maunganui retail property is for sale with abundant rental upside and future redevelopment potential.
The single-level building, at 134-136 Maunganui Rd, has excellent frontage to the main retail hospitality strip and is tenanted by one of the Mount’s most popular restaurants and a Kiwiana gift shop.
Together they return $92,760 in net annual rent plus GST and outgoings. These rentals have excellent short-term upside as one of the tenancies is well below market.
A new owner has an opportunity to refurbish and strengthen the property to make the most of strong demand for space on the Mount’s retail strip. The leases also contain redevelopment clauses, allowing a new owner to take advantage of the site’s potential for a multi-level development.
Colliers International has been appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday, February 20, unless sold earlier.
Simon Clark, managingd director of Colliers Tauranga, says the prime location, rental upside and development potential will attract a broad range of buyers.
“This is an exceptional opportunity to acquire a superbly positioned property in one of the most tightly held and desirable places to own real estate in New Zealand.
“The site offers the potential of a new three- or four-storey building with a combination of ground floor retail, first floor offices and/or multi-story apartments.
“A new owner also has the potential of a smaller-scale redevelopment keeping the existing building and building apartments over the rear carpark area.
“The property is being offered for sale after more than 40 years of ownership by one family, making this an opportunity to acquire a tightly held asset in a great location.”
The property is zoned Commercial to its frontage and Residential at the rear. It has a floor area of some 258sq m on a 434sq m freehold site.
Popular Vietnamese restaurant Rice Rice Baby occupies the 108sq m retail unit at 136 Maunganui Rd. Website TripAdvisor ranks Rice Rice Baby fourth overall out of the Mount’s 82 restaurants.
The adjoining 150sq m tenancy is occupied by Kiwiana Gift Souvenirs, which provides a range of New Zealand-made products. The shop is across the road from the i-SITE visitor information centre and the large new public park facility.
Duncan Woodhouse of
Colliers International Tauranga says the property is perfectly poised to reap the rewards of the Mount’s booming commercial property market.
He points to the sale of Mount Fish and Chips at 80 Maunganui Road, which recently sold for $2 million, at a record low yield of 1.425 per cent.
“We’re experiencing strong population growth, a booming regional economy and sustained development activity, all of which is helping to drive up property values.”
The latest Colliers International survey shows Tauranga/ Mount Maunganui is the top spot in the country for commercial property investor confidence.