Practices make perfect in Tauranga
The smart premises housing two professional practices in a popular Tauranga city-fringe office area are up for sale, offering buyers an affordable splitrisk investment.
The two-level stand-alone office building on Wharf St is fully occupied by long-established local practices Jigsaw Architects and Promech Consultants.
The site generates a total net annual rental return of $91,589 plus outgoings and GST.
Jigsaw Architects specialises in architecture and project management. Its premises of some 200sq m generate a net rental return of $56,757 plus outgoings and GST. Promech Consultants provides a wide range of engineering and project management services. It pays an annual net rent of $34,832 plus outgoings and GST for its approximately 126sq m offices.
Both tenants have recently committed to new leases through to
2026 with two further three-year rights of renewal. The lease agreements provide for market rent reviews on renewal dates.
The freehold land and buildings at 103 Wharf St are being offered for sale through Brendon, Lynn and Ryan Bradley of Bayleys Tauranga.
The property will go under the hammer at an auction on Wednesday October 25, unless sold prior.
Brendon Bradley said the approximately 326sq m building on
270sq m of freehold land was zoned as part of the City Centre under Tauranga’s city plan.
“This commercial site is strategically situated in a highly sought-after Tauranga city fringe office area and is poised to benefit from major redevelopment projects revitalising the city centre.
“With its two established professional services tenants, now on new leases, this site is a solid income earner that will appeal to commercial property investors seeking an affordable split-risk asset with future growth potential. City Centre zoning also provides significant potential for future redevelopment with buildings up to 19m high,” he said.
Lynn Bradley said the stand-alone two-level property currently provided individual office tenancies on each floor, with the flexibility to combine these into one in the future.
“The property encompasses two adjoining buildings constructed in the 1960s and 1970s. Both have undergone internal alterations to suit tenants’ fitout and upgrade requirements over the years, with the most recent refurbishments to both floors carried out within the past five years,” she said.
The front and rear buildings have B-grade and C-grade IEP seismic ratings respectively. “The premises are extremely well-presented with the office accommodation being predominantly open-plan administrative areas on both floors with each having their own staff amenities.”
Ryan Bradley said location was key to much of the site’s investment appeal. “The property is located in Wharf St on the northwestern side of Cameron Rd, a core transport corridor that runs the length of Tauranga city. This is a highly sought-after commercial precinct close to the city centre which is handy to the main arterial routes and the Tauranga expressway.
“It is well placed to reap the benefits of the renaissance underway in Tauranga’s CBD. This includes the new major Farmers commercial/residential development with a number of national retailers now trading in this multi-level complex,” he said.